Electric

Federal EV Rebate Maintained in Latest Budget, But What After 2025?

by The Car Guide
Photo: Dominic Boucher

Budget 2024 tabled by Canada’s Finance Minister Chrystia Freeland on Tuesday doesn’t include any changes to the federal Incentive for Zero-Emission Vehicles (iZVE) program.

The program will continue as planned until March 31, 2025. The budget proposes to provide the program with an additional $607.9 million over two years, starting in 2024-25.

The incentives include up to $5,000 for fully electric vehicles and plug-in hybrids offering at least 50 km of zero-emission range. PHEVs with 49 km of range or shorter get $2,500.

A highlight of Budget 2024 is a new tax credit designed to support the EV supply chain and “secure the future of Canada’s automotive industry.” Ottawa plans to spend $80 million over five years starting in 2024-2025 and an additional $1.02 billion from 2029-2030 to 2034-2035. More details about the tax credit will be provided this fall, but this measure could help bring a Honda EV plant to Canada.

A few weeks ago, Quebec announced it would phase out its provincial EV rebate program starting January 1, 2025. The maximum incentive of $7,000 will drop to $4,000 next year, then $2,000 in 2026. It will be completely eliminated in 2027.

Earlier this month, Manitoba joined the list of provinces offering incentives to EV customers. Eligible new electric and plug-in hybrid vehicles, meaning those with an MSRP below $70,000, will be discounted by up to $4,000. Used EVs and PHEVs that are no more than four years old will get up to $2,500 off. The program is retroactive to August 1, 2023.

Share on Facebook

More on the subject

ElectricManitoba to Offer $4,000 EV Incentive, Extend Gas Tax Break
Manitoba’s 2024 budget tabled yesterday by Finance Minister Adrien Sala will make the province the latest to offer incentives to EV customers. Eligible new electric and plug-in hybrid vehicles, meaning those with an MSRP below $70,000, will be discounted by up to $4,000. Used EVs and PHEVs that are no …
ElectricCanadian First: ZEVs Exceeded 10 Percent of New Registrations in 2023
For the first time ever, more than 10 percent of all new vehicles registered in Canada during the past year were zero-emission vehicles (ZEV), including purely electric (EV) and plug-in hybrid (PHEV) models. The exact proportion is 10.8 percent according to Statistics Canada, or 184,578 of the 1.7 million new …
NewsThe Best Electric SUVs and Crossovers in 2024
The selection of electric SUVs and crossovers keeps expanding in 2024. The Chevrolet Blazer EV and Honda Prologue are finally arriving, while the Hyundai Kona Electric is completely redesigned. You also have to keep an eye on the VinFast VF 6 and VF 7 coming from Vietnam, not to mention …
NewsThe Best Electric Cars in 2024
The electric car market is not the same in 2024 as it was last year. The Chevrolet Bolt EV / Bolt EUV and Kia Soul EV are gone, while Fiat is bringing back the 500 in Canada as a fully electric vehicle. As for the best-selling Tesla Model 3 , …
ElectricBad News for EV Shoppers in B.C.
After Quebec said it would phase out its provincial zero-emission vehicle (ZEV) incentive program starting in 2025, British Columbia is now making far fewer models eligible under the CleanBC Go Electric Passenger Vehicle Rebate Program. The maximum MSRP for cars has been lowered from $55,000 to $50,000. Additionally, SUVs and …
ElectricOttawa’s ZEV Incentives More Popular Than Ever So Far in 2024
Canadians are not letting high prices and interest rates prevent them from getting their hands on a new electric vehicle or plug-in hybrid —thanks to Ottawa. A total of 95,775 Incentives for Zero-Emission Vehicles (iZEV) claims were made by dealers on behalf of customers during the first half of 2024.