Canada’s iZEV Program to End on March 31, Maybe Sooner

by The Car Guide January 10, 2025

The Incentives for Zero-Emission Vehicles (iZEV) program introduced by Transport Canada in the spring of 2019 has been a huge success so far, but it’s coming to an end soon.

In a press release on Friday, the Canadian government announced that the iZEV program will “pause on March 31, 2025, or once all the available funding has been accessed by Canadians.” 

Over 546,000 electric and plug-in hybrid vehicles have been incented through this program since it began almost six years ago, helping Canada reach a new ZEV market share of 11.7% in 2023 and 14.2% in the first three quarters of 2024.

As of January 10, 2025, $71,817,104 remains in funding—good for approximately 16,000 ZEVs—according to Electric Mobility Canada (EMC), which does not support the government’s decision as it jeopardizes the goal of reaching and even surpassing its 20% ZEV sales target by 2026.

“Canadians who want to make the switch to electric mobility are left with very little time to take advantage of the incentive, which is the exact opposite of a predictable and sustainable program for consumers and industry”, EMC President and CEO Daniel Breton said.

Similarly, Quebec has exhausted funds to support its “Roulez vert” incentive program following a surge in ZEV purchases in recent months. The program will be suspended starting February 1. The province’s Ministry of Environment and Sustainable Development hopes to resume the program in April after the 2025 Budget is announced. However, that is no sure thing.

ZEV sales across the country are expected to fall significantly this year as a result of both moves.

Canadian businesses and organizations purchasing or leasing zero-emission trucks can continue to benefit from the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program, which continues until March 31, 2026—subject to funding availability, of course. 

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