Forget March 31, Federal ZEV Incentive Now Officially Halted
Transport Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program, which was supposed to be suspended on March 31, 2025 or when funds have been fully committed, has now officially paused.
In an email sent to the auto industry and seen by The Car Guide, the federal government confirms no money is left and “requests all manufacturers, dealerships and authorized sellers to stop offering the iZEV incentives to customers.
- Also: Quebec’s EV Rebate Program to Be Halted For Months, May Not Return
- Also: Canada’s iZEV Program to End on March 31, Maybe Sooner
Should additional funding become available, which is next to impossible given the current situation in Ottawa and the likely upcoming change in administration, the portal will be reopened and “claims will be processed on a first come, first served basis.”
The same message goes on to say that, even though the iZEV Program no longer accepts new requests, it will continue to process and fulfill any pending requests according to the Program guidelines. Requests that have already undergone eligibility assessment can be submitted for reimbursement.
Transport Canada urges dealerships and authorized sellers to notify their customers who have ordered eligible electric and plug-in hybrid vehicles that they will not receive the federal incentive of up to $5,000 and $2,500, respectively. The iZEV Program will not reimburse incentives for sales and leases that did not get through the eligibility assessment in the web portal.
“Today’s announcement only adds to the chaos and confusion that began with Friday’s announcement," said David Adams, President and CEO of Global Automakers of Canada. "I’ve not seen anything like this before and certainly sends the wrong message to Canadians looking to purchase an EV by a government that wants them to do so.”
While this is the end for retail customers, 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.
Quebec has also 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 in 2025 as a result of both moves.
