Canadian electric vehicle rebates and incentives you should know about from coast-to-coast-to-coast
This article is Sponsor Content presented by Hyundai Canada
To spur electric vehicle adoption in Canada various levels of government across the country are offering purchase rebates.
These incentives are intended to offset the higher price tag of EVs compared to their gas counterparts.
But not all rebates are alike. Depending on where you live, what type of green vehicle you are buying and what price point it is, you could be eligible for up to – $12,000.
So, ahead of any big purchase, it’s always prudent to sit down and crunch the numbers. Below is breakdown of everything a savvy potential EV customer needs to know about rebates and incentives.
Is my BEV/HEV/PHEV rebate-eligible?
If you are purchasing a plug-in hybrid electric vehicle (PHEV) or a battery electric vehicle (BEV) in Canada, you may be eligible for provincial and/or federal EV rebates.
If you are purchasing a hybrid-electric vehicle (HEV) you are not eligible.
For a complete list of rebate-eligible vehicles, you’ll need to search your make and model vehicle in Transport Canada’s EV rebate database.
But there are some golden rules to remember:
- The base model for passenger vehicles must be below $55,000 MSRP;
- Higher priced trim levels for passenger vehicles are only rebate eligible up to $65,000 MSRP (light trucks have a limit of $60,000-$70,000); and
- Not every province offers its own additional rebate, but every Canadian EV owner is eligible for the federal rebate of a maximum of $5,000, if they meet the criteria.
But, for reference, Hyundai’s Ioniq 5, Ioniq 6 and Tuscon plug-in hybrid vehicles are all rebate eligible in Canada.
How do I get my rebate?
New vehicle rebates are applied for and received directly by the dealership at the time of purchase. Once the rebate is approved for the vehicle the amount is deducted off the vehicle’s tax- and fees-included price.
However, if you are buying a used EV, you may have to apply for any applicable rebates independently.
How many rebates can I get?
Rebates in Canada are stackable. That means that you can receive both a federal and a provincial rebate (if applicable) on the same vehicle purchase.
For example, an EV buyer in Quebec is able to receive the province’s rebate up to a maximum of $7,000 and the federal rebate of up to a maximum of $5,000.
This would give the purchaser a potential $12,000 in savings.
Can I get a rebate on a used electric vehicle?
Depending on where you live, yes. Used EV rebates are only offered by provinces or territories. Currently the federal government does not make provisions for used EV purchases in its rebate funding program.
Usually though the rebate amounts for a used vehicle purchase are less than those for a new vehicle purchase.
What provinces and territories offer rebates?
British Columbia offers rebates tied to household income.
For individuals with an income over $100,001 there is no rebate at all. Those making $90,001 – $100,000 can get $500 for a PHEV with an electric range of 85km or less and $1,000 for a long-range PHEV or BEV. The $80,001 – $90,000 income bracket can get $1,000 for a PHEV with an electric range of 85km or less and $2,000 for a long-range PHEV or BEV. And those making less than $80,000 may get $2,000 for a PHEV with an electric range of 85km or less and $4,000 for a long-range PHEV or BEV.
Eligible cars (two seaters, compacts, mid-sizes and large cars) must have a maximum MSRP of $55,000. Larger vehicles (station wagons, mini-vans, SUVs, small and standard pickup trucks and passenger vans) must have a maximum MSRP of $70,000.
Alberta does not offer any provincial rebates for battery electric vehicles, plug-in hybrid electric vehicles or hybrid electric vehicles.
Saskatchewandoes not offer any provincial rebates for battery electric vehicles, plug-in hybrid electric vehicles or hybrid electric vehicles.
Manitoba does not currently offer any provincial rebates for battery electric vehicles, plug-in hybrid electric vehicles or hybrid electric vehicles. However, the provincial NDP government elected in October 2023 ran on a platform that included creating a rebate for ZEVs in Manitoba.
Ontario does not offer any provincial rebates for battery electric vehicles, plug-in hybrid electric vehicles or hybrid electric vehicles.
Quebec offers Canada’s largest provincial rebate for new EVs: $7,000 for eligible models. They also allow vehicle base prices to a maximum of $65,000.
PHEVs can see a range of $2,500-$5,000 in rebates from the Quebec government. The rebate amount is dependent on the vehicle’s electric range.
Nova Scotia offers a maximum $3,000 provincial rebate for both new BEVs and PHEVs. For used vehicle rebates, the province offers between $1,000 – $2,000.
Used with the federal $5,000 rebate, Nova Scotians can save up to $8,000 on their zero-emission vehicle purchase.
New Brunswick offers a maximum $5,000 rebate for new battery-electric vehicles and new long range (over 50km) plug-in hybrid electric vehicles. Short range PHEVs (under 50km range) and used BEVs can receive $2,500, while a used PHEV can see a $1,000 rebate.
As well, New Brunswick offers $750 towards home charging stations.
When combined with the $5,000 federal rebate, customers could see $10,750 in savings.
Prince Edward Island
Prince Edward Island offers a $5,750 rebate for residents that purchase a new or used EV. There is also a $3,250 rebate for consumers who purchase a plug-in hybrid electric vehicle.
PEI also offers a $750 charging incentive to help with the cost of installing Level 2 home charging or charging costs for those unable to access home charging.
When combined with the federal $5,000 rebate, PEI consumers can save a maximum of $10,750 on their vehicle and charging infrastructure.
Newfoundland and Labrador
Newfoundland and Labrador offers a $2,500 rebate for the purchase or lease of a battery electric vehicle and $1,500 for a plug-in hybrid. Customers can save a maximum of $7,500 when combining the provincial rebate with the federal $5,000 rebate.
Nunavut does not offer any provincial rebates for battery electric vehicles, plug-in hybrid electric vehicles or hybrid electric vehicles.
Only residents in communities connected to Northwest Territories’ hydroelectric grid are eligible for EV rebate.
Today, those communities are: Behchokǫ, Dettah, Enterprise, Fort Resolution, Fort Smith, Hay River, Kátł’odeeche, Ndilǫ or Yellowknife.
But Northwest Territories offers the highest EV rebate for all of Canada. Eligible BEVs and PHEVs may receive $7,500. The Territory also covers 100 per cent of purchase and installation cost up to $500 for Level 2 home chargers.
Combined with the federal $5,000 rebate, Northwest Territories customers may receive a maximum of $13,000 off their purchase of an EV and related home charging equipment.
Yukon offers a $5,000 rebate for new BEVs and PHEVs with a range of 50km or more and a $3,000 rebate for new PHEVs with a range of less than 50 km.
Combined with the federal $5,000 rebate, Yukon customers may receive up to $10,000 off their EV purchase.