Electric Cars Incentives in Canada

Along with the eco-friendly nature of electric cars (a requisite of the world suffering from global warming), they are also budget-friendly.

Because of these very reasons, incentives to get more and more electric cars on roads have increased substantially. This process has been supported by Canada’s federal and provincial governments.

Electric Cars Incentives from the Federal Government

Through the iZEV Incentive Program, the federal government provides Canada EV incentives across the nation to assist in lowering the cost of buying an electric car. It covers any new zero-emissions vehicle (ZEV), including battery-electric vehicles (BEVs), plugin hybrid vehicles (PHEVs), and hydrogen fuel cell cars, when it is purchased or leased for the first time (FCVs).

The battery-electric, hydrogen fuel cell, and longer-range plugin hybrid vehicles can earn the first registered owner up to $5,000 under the federal government of Canada’s EV incentives program.

Plugin hybrid electric vehicles with a shorter range are eligible for a $2,500 bonus.

Electric Cars Incentives from the Provincial Government

1.  Alberta’s Incentive Programs for Electric and Plugin Hybrid Cars

The Canadian government is a good resource for residents of Alberta as it provides substantial incentives of up to $5,000 to Canadians who buy or lease zero-emission automobiles (ZEVs).

The following vehicles are classified as ZEVs by the Canadian government:

  • Automobiles with battery
  • Hybrid electric automobiles that plug in
  • The program provides two different kinds of rewards:

All vehicles that have an electric range of 50 kilometers or more, including battery electric vehicles, hydrogen fuel cell vehicles, and long-range plugin hybrid electric vehicles, are eligible to receive $5,000.

The maximum award is $2500 for plugin hybrid vehicles (PHEVs) with an electric range of under 50 kilometers.

2. Columbia’s Incentive Programs for Electric and Plugin Hybrid Cars

There are incentive programs for electric and plugin hybrid vehicles in British Columbia.

The CleanBC Go Electric light-duty vehicle rebate program aims to reduce the cost of zero-emission vehicles (ZEVs) for British Columbia residents. The program provides rebates on qualifying passenger vehicles up to:

$3,000 for purchasing or renting a new electric automobile, hydrogen fuel cell vehicle, or longer-range plugin hybrid electric vehicle.

A shorter-range plugin hybrid electric vehicle costs $1,500 to buy or rent.

The offer is “stackable,” meaning you can combine the provincial and federal rebates for  $8,000.

Visit the government of British Columbia’s website for more information on the program.

3. Manitoba’s Incentive Programs for Electric and Plug-In Hybrid Cars

Manitoba has incentive programs for electric and plugin hybrid vehicles.

Manitoba residents can seek assistance from the Canadian government, which provides significant incentives of up to $5,000 to Canadians purchasing or leasing zero-emission vehicles (ZEVs).

The following vehicles are classified as ZEVs by the Canadian government:

  • Vehicles powered by batteries
  • electric vehicles that are plugin hybrids

The program provides two kinds of incentives:

  • Battery electric vehicles, long-range plugin hybrid electric vehicles, and hydrogen fuel cell vehicles with a range of 50 kilometers or more are eligible for $5,000.
  • Plugin hybrid vehicles (PHEVs) with an electric range of less than 50 kilometers are eligible for a $2500.

4. New Brunswick Incentive Programs for Electric and Plug-In Hybrid Vehicles

New Brunswick has incentive programs for electric and plugin hybrid vehicles.

The NB Plug-In Program

This is a rebate program for battery electric vehicles, plugin hybrids, and home electric vehicle charging stations.

You can get up to $5,000 for new electric vehicles and $2,500 for used electric vehicles,  similar to the federal program.

The offer is “stackable,” meaning you can combine the provincial and federal rebates for  $10,000.

5. Nova Scotia Has Incentive Programs For Electric and Plugin Hybrid Vehicles

Residents of Nova Scotia can receive up to $3,000 in rebates when purchasing or leasing a new long-range electric vehicle with six or fewer seats and $2,000 when purchasing or leasing a used short-range electric vehicle with six or fewer seats.

The Electrify Nova Scotia Rebate Program is the name of this rebate.

When combined with the federal program, you could receive up to $8,000 in rebates on a new EV purchase.

6. EV incentives in Prince Edward Island

The EV incentives available in PEI are among the most generous in Canada.

Incentives of up to $5,000 are available for the purchase of a new or used electric vehicle (or for new vehicle leases)

Amounts up to $2,500 are available for the purchase of a plugin hybrid electric vehicle (or for new vehicle leases)

All recipients of the PEI Universal EV incentive will also receive a free Level 2 charger (installation fees are not included)

7. EV incentives in Quebec

In Quebec, EV incentives are available in the form of rebates when purchasing a new or used electric vehicle:

Purchase or lease a new electric vehicle for up to $8,000

Up to $4,000 in tax credits for the purchase of a used all-electric vehicle.

A home charging station can cost up to $600.

A $5,000 rebate is available for the installation of a charging station at your workplace or multi-unit residential building.

8. Saskatchewan Incentive Programs for Electric and Plugin Hybrid Vehicles

Saskatchewan residents can turn to the Canadian government, which provides considerable incentives of almost $5,000 to Canadians buying or leasing zero-emission vehicles (ZEVs).

The following vehicles are classified as ZEVs by the Canadian government:

  • Vehicles powered by batteries
  • electric vehicles that are plugin hybrids

The program provides two kinds of incentives:

Battery electric,  long-range plugin hybrid electric, and hydrogen fuel cell vehicles with a range of 50 kilometers or more are eligible for $5,000.

Plugin hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for a $2500 tax credit.

In Canada, Hyundais Receive more EV Incentives than Tesla Models

In the first half of the year, Hyundai received more federal Incentives for Zero-Emission Vehicles (iZEV) than any other car manufacturer.

By the midpoint of 2022, 7,299 iZEV rebates had been applied to newly purchased Hyundai vehicles in Canada, surpassing Tesla’s 7,054 units. It is worth noting, however, that Hyundai’s figures include plugin hybrids and electric cars.

Because the Model S and Model X are too expensive, the Tesla Model 3 remains the single most popular model to receive iZEV rebates in Canada, accounting for all 7,054 units. In May, 1,139 Model 3s received the rebate, but this dropped dramatically to 205 units in June due to a recent price increase.

The Hyundai Ioniq 5, which sold 3,227 units, came in second place with the most rebates, ahead of the Hyundai Kona EV, which sold 2,227 units.

The Chevrolet Bolt EUV (653 units),  Kia EV6 (458 units), Nissan Leaf (590 units), Kia Soul EV (403 units), Ford Mustang Mach e (269 units), Chevrolet Bolt EV (389 units), and Polestar 2 (147 units) are also popular models.

Passenger cars with an MSRP of less than $55,000, as well as wagons, pickup trucks, SUVs, minivans, vans, and special purpose vehicles with an MSRP of less than $60,000.

Battery-electric, hydrogen fuel cell, and plugin hybrid vehicles with a range of 50 km or more are eligible for up to $5,500, while shorter range vehicles are not.

The Ford Escape was the most incentivized plugin hybrid this year, with 1,643 units receiving a rebate.

The Toyota Prius Prime (1,395 units), Chrysler Pacifica (1,332 units), Hyundai Tucson (1,011 units), and Mitsubishi Outlander followed (986 units).

Hyundai’s Kona Electric has above-average acceleration and range, making it useful both in town and on the highway. Cargo space behind the rear seats is average, but it is sufficient for most people’s daily commute.

When the rear seats are folded down, the cargo space is large enough to hold camping equipment or luggage for you and a friend to escape for the weekend.

Interior features are average, with only a 7-inch infotainment screen and a driver’s seat that adjusts manually and is not heated. Forward collision avoidance and lane departure warning are standard safety features that are also slightly below average.

The electric Kona is a very appealing small SUV that is both efficient and practical in town.

Tesla Cars

1. Tesla Y Model

Because the Tesla Model Y is expensive, it does not qualify for federal incentives, and not all information will be available until mid-2020, though you can order one now.

The Long Range AWD is the base model in Canada (all-wheel drive). It includes two electric motors that provide sports car acceleration and an all-wheel drive system to help you get around during the worst Canadian winters.

Standard safety features include emergency braking,  blind-spot monitoring, and collision warning.

Every Tesla is a completely secure environment for you and your passengers. The cargo space of 1919 liters is larger than any other EV, allowing you to transport anything you need for the cabin, camping gear for a weekend away, or groceries.

If you want to seat seven people, the Model Y has an optional third row of seats.

2. Tesla 3 Model

The foundation of The Tesla Model 3 is rear-wheel drive and powered by a single electric motor. It is without a doubt the fastest base EV on the market, with acceleration that will push you back into your seat.

All-wheel drive models are available, but they raise the price to the point where government incentives are no longer available.

When charging at home, charging times are average, and you must pay extra for an adapter or Tesla’s own home charging station. However, when using community Direct Current (DC) fast-charging stations, the Tesla is faster than other EVs, reaching 80 percent in only 30 minutes.

So, stop in for groceries, and you’ll be well-stocked by the time you’re done.

The sedan-style body offers below-average cargo space. However, you get a trunk and a front-loading trunk that offers more than enough space except for larger or longer items.

The Tesla Model 3 is an excellent choice because of its excellent standard safety features, such as automatic emergency braking and lane keep assist.

3. Nissan Leaf

The base Nissan Leaf has a slightly lower than average range and only average acceleration. A fast-charging port is also optional rather than standard. Still, the power and range are adequate for most day-to-day tasks around town.

Cargo space behind the rear seats is average, and the rear seats do not fold completely flat. With the seats down, however, there is enough room for longer items such as hockey sticks, bags, or gardening supplies.

Excellent safety features such as steering assist, blind spot intervention, intelligent forward collision warning, and the emergency braking are standard, as are heated front seats and steering wheel. You will be very comfortable and extremely safe on your daily commute in the Leaf.

4. MINI Cooper SE

Taller passengers will not be comfortable in the rear seats of the Mini Cooper SE because it is a small 3-door car.

However, for one or two people, the Mini is a lot of fun because it is small, quick, and handles well.

The interior features two eye-catching screens: a digital instrument cluster in front of the driver and a 6.5″ screen built into the large, circular dash.

There are heated seats, heated mirrors, and a precondition feature that allows you to turn the heater or air conditioner on at a specific time, ensuring that your Mini is warm or cool when you get in for your morning commute.

The standard safety features include forward collision warning and automatic emergency braking. This little electric car may be ideal for Canadian city dwellers because it is fun to drive, looks great inside, and is safe.

Receive the Incentives

The dealership will apply the incentive at the point of sale.

It will appear directly on the bill of sale or lease agreement for eligible ZEVs on or after the eligibility date. Before applying the incentive, the dealer must apply taxes and fees to the purchase or lease. The dealer must submit the necessary documentation to be reimbursed for an incentive given to customers at the point of sale. The federal incentive for eligible ZEVs will be added to provincial or territorial incentives.

Electric Cars Incentives in Canada
Electric Cars Incentives in Canada

Tax breaks for businesses

Businesses that receive a federal iZEV Program incentive cannot use the tax write-off for ZEVs. Businesses and self-employed individuals can contact the Canada Revenue Agency at 1-800-959-5525 for more information on the tax write-off for these vehicles.

You may also like: