As we are making our way further into the 21st century, we are witnessing a change in how we go about energy use. First, we can’t ignore the impact of fossil fuels on the environment. On the other hand, alternative energy source technology is becoming more affordable. So it was only natural that in 2019 the Canadian government introduced their iZEV (incentive for zero-emission vehicles) plan for those switching from traditional cars to plug-in hybrids, fully electric, or even hydrogen fuel cell technology. If you think you’re ready to go emission-free, read to learn about how you can save with an electric car and what you need to know about the electric car rebates in particular.
You receive your rebate at the time and point of purchase. This means that all paperwork is laid upon the dealer you are buying from. The rebate may be prorated according to the terms if you choose to lease. For instance, the federal rebate can be received in full on a 48-month lease, while a 12-month lease is going to entitle you only to a quarter of the rebate incentive.
To see if an EV qualifies for an iZEV rebate, please check out the list by Transport Canada. It shows two main groups of vehicles. Battery-electric vehicles (BEV) and some long-range plug-in hybrids (PHEV) are entitled to the $5,000 rebate. The shorter range PHEVs are incentivized to a lesser rebate of $2,500. This list is regularly updated and allows you to check the key parameters like fuel type, seating capacity, and battery size, as well as conveniently breaks down the rebate entitlement depending on the terms of the lease.
The commercial use of electric vehicles may give business owners additional benefit of writing off tax on some ZEVs. The limit of the tax write-off is $55,000.
On top of the federal incentives, some provinces also offer programs to encourage drivers to go zero-emission.
In Quebec, drivers can make use of the New vehicle rebate program. The program entitles drivers up to $8,000 upon purchase of an electric car, which is promised to be maintained at least until March 31, 2022. To be eligible, the vehicle MSRP must be under $60,000, which is a reduction from $75k that was the case at the beginning of 2020. Still, that’s up to $13,000 in rebates together with the federal incentive.
The BC incentive offers up to $3,000 towards purchase or lease of a new BEV, hydrogen fuel cell vehicle, or longer-range PHEV with the eligible manufacturer suggested retail price (MSRP) not exceeding $55,000. Additionally, BC residents may benefit from Scrap It program that provides up to $6,000 for trading in an old vehicle.
The provincial EV rebate program was abolished in 2018. At the moment, Ontario Ministry of Transportation doesn’t offer any financial assistance. If you still want to buy an EV in Ontario, you can get a green licence plate allowing you to drive in all provincial high occupancy vehicle (HOV) lanes even with only one person in the vehicle.
If you’ve only started considering your shift to a greener driving, you may want to start with the list of the most affordable EVs on Canadian auto-market in 2020.
Some of the cheapest EVs are also listed among the most fuel-efficient. Fuel efficiency can help you save in the long run. So, make sure to consider a combination of strategic savings with immediate savings on iZEV incentives.