Buying an electric vehicle is not only better for the environment, but it’s estimated that it could save you around $140 per month on vehicle-related expenses. Because of these benefits, both the federal government and some provinces offer Canada EV incentives to get more electric vehicles on the road.
Canada EV incentives from the federal government
The federal government offers Canada EV incentives across the country to help reduce the cost of purchasing an electric vehicle through the iZEV Incentive Program. It applies to the initial purchase or lease of any new zero-emissions vehicle (ZEV), including battery-electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs) and hydrogen fuel cell vehicles (FCVs).
The Canadian federal government’s EV incentives program offers up to $5,000 for the first registered owner of a battery-electric, hydrogen fuel cell, and longer range plug-in hybrid vehicles. Shorter range plug-in hybrid electric vehicles are eligible for an incentive of $2,500.
Long range vs. short range electric vehicles
According to the Canadian federal government, long range ZEVs have a battery capacity of at least 15 kWh and can accommodate a trip of 50 kilometres or more on a single charge. Short range ZEVs have a lower battery capacity than that.
Which vehicles are eligible for Canada EV incentives from the federal government?
In order for a vehicle to be eligible for Canada EV incentives at the federal level, it needs to meet a few basic requirements depending on its size.
6 seats or less: The base model MSRP must be $45,000 or less
7 seats or more: The base model MSRP must be $55,000 or less
Below is a list of vehicles that may be eligible for Canada EV incentives from the federal government, although you’ll need to verify that the specific trim, year and model you’re interested in is eligible:
Canada EV incentives from the provincial government
More and more provinces are offering EV incentives across Canada. Many of these provincial programs can also be combined with the federal iZEV Incentive Program to maximize the possible savings when it comes time to buy your electric vehicle.
EV incentives in BC are offered based on the type of electric vehicle you’re buying:
$3,000 for purchase or lease of a new battery electric vehicle
$1,500 for purchase or lease of a plug-in hybrid electric vehicle
$3,000 for purchase or lease of a hydrogen fuel-cell vehicle
The SCRAP-IT program offers up to $6,000 in rebates when you trade in your old, gas-powered vehicle for an new or used electric one
You can also get various rebates to install charging stations in BC:
Up to $300 for a home EV charger
Up to $3,000 for apartment and condo buildings
Up to $2,000 per charger for workplace installation
New Brunswick EV incentives
New Brunswick offers a number of EV incentives for the purchase or lease of used or new electric vehicles and on home charging stations:
Up to $5,000 for the purchase of a new electric vehicle, and up to $2,500 for a used vehicle
Up to $5,000 on lease terms as long as 48 months
Get a $750 rebate on a home charging station
Nova Scotia EV incentives
The Nova Scotia Electrify program works very similarly to the federal iZEV Incentive Program. Both new and used electric vehicles are eligible with MSRPs up to $60,000 and $55,000 respectively, depending on the type of vehicle.
Get a rebate of up to $3,000 with the purchase of a new electric vehicle
Get a rebate of up to $2,000 with the purchase of a used electric vehicle
Ontario EV incentives
While the Ontario provincial government does not offer EV incentives, you can still get a $1,000 rebate through the Plug’n Drive Used Electric Vehicles program. In order to be eligible you’ll have to first attend a free Used EV Seminar and then send your proof of purchase to Plug’n Drive once you’ve bought your used electric vehicle.
As part of the Scrappage Incentive program from Plug’n Drive, Ontarians can also recycle your old gas car when you buy an electric one, and get another $1,000 incentive.
Prince Edward Island EV incentives
The EV incentives offered in PEI are some of the most generous in Canada.
Up to $5,000 in incentives for the purchase of a new or used electric vehicle (or for new vehicle leases)
Up to $2,500 for a the purchase of a plug-in hybrid electric vehicle (or for new vehicle leases)
All PEI Universal EV incentive recipients will also receive a free Level 2 charger (installation fees are not included)
Quebec EV incentives
EV incentives in Quebec are available as rebates when you purchase a new or used electric vehicle:
Up to $8,000 for the purchase or lease of a new electric vehicle
Up to $4,000 for the purchase of a used all-electric vehicle
Up to $600 for the purchase of a home charging station
Up to $5,000 rebate on the installation of a charging station at your work or multi-unit residential building
Keep in mind that the Canada EV incentives and rebates listed above may change depending on program availability. The federal program will provide $300 million towards these credits until December 31st, 2023 and the program is offered on a first-come, first-served basis. Provincial-based incentives are constantly being revised based on available funding and program duration.
Frequently asked questions about Canada EV incentives
Your rebate should be applied at point-of-sale (at the dealership or online) directly on the bill of sale or lease agreement. Your dealership will be responsible for completing the documentation required to receive the incentive.
No, there is no income limit for the federal electric vehicle tax credit.
Yes, the federal iZEV Incentive Program will only be applied to ZEV purchased before January 1, 2024. Only $300 million has been allotted to the program and it is on a first-come, first-served basis.
Chelsey Hurst is an associate editor at Finder. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature.
Most cars are an investment, but none so much as a Tesla. If you’re looking at purchasing one, this guide will show you how to find the best model for you and how to make your purchase.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.