Some Canadian governments are doubling down on EV purchase incentives while others are backing off on offering rebates

The approaching end of 2024 means changes may soon be coming to Canada’s electric vehicle purchase incentive programs.

Nine provinces and territories, plus the Canadian federal government currently offer EV buyers rebates. Within the next six months at least three of those programs are set to expire or scale back.

The prospect of changes to Canada’s rebate programs is causing confusion and concern among those considering purchasing an EV.

Some auto industry stakeholders are criticizing governments that either don’t offer or are rolling back their rebate programs, while governments say the rebates were necessary to kickstart a new industry, but can’t and shouldn’t be a permanent fixture.

To demystify the situation, Electric Autonomy breaks down what Canadians can expect over the coming months from changing provincial and federal programs.

Federal EV purchase incentive

Last year Ottawa set sales targets for new vehicles sales in Canada. By 2026 zero-emission vehicles (including plug-in hybrids and battery-electric vehicles) will make up 20 per cent of new light-duty vehicle sales. By 2030 ZEVs would make up 60 per cent of new sales and, by 2035, they would make up 100 per cent.

Today, the federal government offers a purchase incentive of $5,000 for the purchase of a battery-electric vehicle (BEV). As of October 1, 2024 only vehicles made in Canada (or in countries with a free trade agreement with Canada) are eligible.

However, the Incentives for Zero-Emission Vehicles (iZEV) program expiry date is March 31, 2025.

This is not the first time the future of the iZEV program has been in question. In 2022 the program got an extension until 2025 after receiving $1.7 billion funding in that year’s budget.

It has not been announced if the program will, once again, be extended. However, the next federal budget will be announced April 16, 2025.

As of July 2024, Transport Canada estimates ZEVs account for 13.7 per cent of new light-duty vehicle registrations.

Quebec’s Roulez vert rebates

Quebec has one of the highest passenger EV adoption rates in Canada. On a per unit basis, the province has the most EVs on its roads.

Quebec’s success with EV adoption is, in large part, attributed to its generous and longstanding (since 2012) Roulez vert purchase rebate.

Initially at $8,000, Quebec’s rebate was the most generous rebate in Canada — and it was stackable with the federal rebate. However, the rebate has undergone changes.

As of 2024 Quebec lowered its rebate from $8,000 for the purchase of a battery-electric vehicle to $7,000. The province intends gradually reduce the rebate on an annual basis until 2027 when the rebate will stop.

The rebates will, however, continue to be stackable.

Starting January 1, BEVs registered in 2025 in Quebec will be eligible for a $4,000 rebate. By 2026, the rebate for vehicles registered that year will be $2,000 and, as of 2027, the rebate program will end.

Quebec said in its Budget 2024 the rebate program was “necessary to begin the electrification of the vehicle fleet in Quebec at a time when there were few models available, with more limited capacity, and when the charging network was emerging.”

Now, it appears, the Quebec government believes the market is sufficiently mature.

British Columbia narrowing eligibility

This June British Columbia lowered the MRSP threshold for their CleanBC EV rebate program from $55,000 to $50,000.

The change follows an earlier adjustment to the program in 2022 that saw the provincial rebate jump from $3,000 for a battery-electric vehicle to a maximum of $4,000, with the provision that the rebate amount would be tied to household income.

Individuals earning $100,001 are not eligible for the CleanBC rebate, while only those making less than $80,000 are eligible for the full rebate.

B.C. has not yet announced if the program will see any further changes in 2025, but says the program is experiencing a higher than expected demand on its funding.

The CleanBC program, offered since 2011, is stackable with the federal incentive.

EV rebates in Newfoundland and Labrador

Newfoundland and Labrador Hydro has offered a stackable purchase incentive for battery-electric vehicles since April 2023. The program offers a rebate for a BEV purchase to a maximum of $2,500 per vehicle.

In April this year the program updated its eligibility requirements to specify that only vehicles purchased within the province from a licensed dealer would qualify. As well the vehicles must be registered in Newfoundland and Labrador. But, the rebate program also changed to allow for used BEVs in the provinces to be eligible for a rebate upon purchase even if they had already received a rebate when originally purchased.

But, as of March 15, 2025, the program will conclude and a provincial rebate for EV buyers in Newfoundland and Labrador will no longer be available.

For more information on Canadian EV rebates changes and availability visit Electric Autonomy’s rebate tracker.