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Canada EV incentives

Reduce your carbon footprint and save with these Canada EV incentives when you buy a zero-emissions vehicle (ZEV) or other eco-friendly cars.

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

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.

  • British Columbia EV incentives

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.

Bottom line

Canada EV incentives for a electric cars can help reduce the overall cost of going green. But before you commit to your next ride, read our guide to buying green cars and learn more about car loans to make sure you can afford the switch.

Frequently asked questions about Canada EV incentives

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