The Government of Canada’s Incentives for Zero-Emissions Vehicle (iZEV) program launched in May of 2019 with $300,000,000 allocated towards it. The program is scheduled to run until April 2022, but The Canadian Press is reporting that 75% of that funding has been exhausted.
The iZEV rebate program provides reimbursements up to $5,000 on the purchase or lease of a new battery-electric vehicle, or a battery-gasoline hybrid one.
With electric car purchases making up 2% of all vehicle sales in 2018, rising to 3% in 2019, and on track to reach 4% of sales in 2020, the Zero-Emission Vehicle Rebate program has been shown to incentivise Canadian consumers into purchasing an electric vehicle.
Eligible Electric Vehicles
In order to be eligible for this rebate, you must be purchasing or leasing an eligible Zero-Emission Vehicle (ZEV) from this list. If the vehicle is on that list, you must be purchasing or leasing a ZEV:
- with six seats or fewer; and
- where the ZEV base model (trim) MSRP is less than $45,000 CAD*.
*Higher priced versions (trims) of these vehicles, up to a maximum MSRP of $55,000 CAD, will also be eligible for purchase incentives.
Eligible Maximum Rebate
Once you know that your vehicle meets the eligibility criteria, there are two levels of incentives:
- $5,000 for battery-electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles.
- $2,500 for shorter-range, plug-in hybrid electric vehicles .
Calls for Additional Funding
With many countries instating policies to end the sale of non-electric cars in the next 15 years, Canada is going a different direction by incentivising consumers with rebates towards electric vehicle purchases; however, the funding that was allocated towards this incentive program in 2019 is not enough to last until April 2022.
Canada is already moving towards going fully electric, with Ford announcing it will invest $1.8 billion in its Oakville assembly complex to produce electric vehicles from 2024 onwards.
Funding for Zero-Emission Vehicle Manufacturers
If your Canadian business manufacturers Zero-Emission Vehicles (ZEV), there are a plethora of Canadian government funding programs to help grow your business. These programs include the Zero-Emission Vehicle Awareness Initiative (ZEVAI) and the Zero-Emission Vehicle Infrastructure Program (ZEVI). Depending on when you are reading this article, these programs may not be accepting applicants, but contact a member of the Mentor Works team to find an automotive funding program that’s right for you.
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