iZEV Rebates in Canada

The Canadian government introduced incentives for the purchase of zero-emission vehicles (ZEVs) to make the switch to green vehicles more affordable to citizens and businesses alike.

We will walk you through the federal CRA rules on zero-emission vehicle incentives, often referred to as rebates. Then, we will cover province-specific rules on ZEV incentives and whether you can combine them to purchase a ZEV.

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CRA iZEV rules

The CRA has two iZEV-specific programs, one for light-duty zero-emission vehicles and one for medium- and heavy-duty zero-emission vehicles (iMHZEV). 

This article focuses on the incentives for light-duty vehicles for individuals and businesses.

Only new zero-emission vehicles qualify for the federal incentive, including demo vehicles with less than 10,000 km on the odometer. The iZEV program is only available for vehicles that are:

• Battery-electric
• Plug-in hybrid electric
• Fuel cell electric

Federal iZEV rules for light-duty vehicles

If you purchase or lease a ZEV from a dealership that is enrolled in the iZEV program, you can benefit from a federal rebate of up to $5,000.

The dealership you are buying or leasing from will submit the needed documentation to get reimbursed by the government for the incentive they provide at the point of sale. Once they confirm your eligibility, the dealership will apply the incentive when you buy or lease an eligible ZEV.

The steps to receive the incentive are:

1. You fill out the Consumer Consent Form as a part of your eligibility check.
2. Once your eligibility is confirmed, you complete the applicable Incentive Received Form.
3. The incentive will show up on your bill of sale or lease agreement.

Taxes and fees are added before the incentive is applied. You shouldn't need to pay a deposit to receive the incentive; you get it directly, not as a later reimbursement or a cheque.

Note that when leasing, the incentive is calculated based on a 48-month leasing agreement. A 48-month lease is eligible for the full incentive, 24 months can receive 50%, while a 12-month lease only qualifies for 25%.

Vehicle criteria

To qualify for the iZEV program, a vehicle must:

• Meet Canada's Motor Vehicle Safety Standards
• Be designed for public road use
• Have at least four functioning wheels and be able to drive on the highway.

The vehicle you purchase or lease must be within the following price ranges:

• Passenger cars with a base Manufacturer’s Suggested Retail Price (MSRP) under $55,000 (up to $65,000 for higher trims).
• Other vehicles like pickup trucks, SUVs and vans with a base MSRP under $60,000 (up to $70,000 for higher trims).

Even if freight and other fees (e.g. add-on accessories and packages) push the price over these limits, eligible vehicles still qualify for the incentive as long as they're on the approved list.

Limits to iZEV

Individuals are eligible for one incentive per calendar year, while businesses and provincial and municipal governments are eligible for up to 10 ZEV incentives. Carsharing companies pre-approved by Transport Canada are eligible for up to 50 incentives per calendar year.

Provincial EV rebates

Depending on the province or territory you reside in, you may be able to benefit from a local iZEV rebate in addition to the $5,000 federal one. In these cases, the federal incentive for eligible ZEVs is applied in addition to the provincial or territory incentive.

While the CRA EV rebate applies only to new ZEVs, some provinces and territories also offer rebates for used EVs.

See the maximum iZEV you can benefit from in each province and territory for a new EV in the table below (in alphabetical order).

Click on the name of your province to jump to the relevant section in this article.

Alberta and Ontario EV rebates

Alberta and Ontario, along with Manitoba, Nunavut, the Northwest Territories, and Saskatchewan, do not offer provincial or territorial EV rebates. If you are a resident of these areas, you can only benefit from the federal iZEV incentive of up to $5,000 when purchasing or leasing an EV.

Quebec EV rebate

You can receive up to $7,000 for the purchase or lease of a new zero-emission vehicle, on top of the federal $5,000, for a total of $12,000 in iZEV incentives. Quebec also offers iZEV for new electric motorcycles and scooters of $2,000 and $500, respectively. The number of EV rebate applications an individual, a business, a municipality, or an organization can submit in a fiscal year is unlimited.

If you are buying a used EV in Quebec, you can benefit from up to a $3,500 provincial EV rebate. You must purchase the vehicle from a car dealer in Quebec, and no previous EV rebates can have been granted for the vehicle.

The incentives for buying or leasing an electric vehicle will gradually decrease in 2025 and 2026. The current amounts will be in effect until December 31, 2024.

British Columbia EV rebate

Depending on your income and the EV you purchase or lease, you can get up to a $4,000 rebate from British Columbia on top of the CRA $5,000 iZEV incentive. 

You need to be pre-approved for a rebate before buying your EV. You must have a valid B.C. driver's license, and your personal income cannot have exceeded $100,000 in the previous tax year. You have a year to use your rebate if your application is approved. You can only get a rebate once as an individual, no matter how many EVs you buy or lease.

Additionally, you can get up to 50% of the cost of buying and installing a home charger to a maximum of $350.

Nova Scotia EV rebate

If you buy or lease EVs with a range of 50 km or more, you can get an iZEV rebate of up to $3,000, while plug-in hybrid vehicles with a lower range qualify for up to $2,000. The full rebate is available on 48-month leases, and an adjusted rebate is available for shorter leases.

Nova Scotia also provides a used EV incentive of up to $2,000 for battery EVs and up to $1,000 for plug-in hybrid vehicles.

Individuals can only get one new vehicle rebate in a calendar year, while businesses, non-profits and municipalities don't have a limit on the rebates they can apply for.

New Brunswick EV rebate

If you buy or lease a new battery EV or long-range plug-in hybrid vehicle, you can receive up to $5,000. For short-range (up to 50 km) plug-in hybrids, the rebate is up to $2,500. You can get the full EV rebate on 48-month leases and an adjusted rebate for shorter leases.

You can also get up to $2,500 for a used battery EV (BEV) and up to $1,000 for a plug-in hybrid. You must purchase the used EV from a dealer, and the vehicle must not have had a previous provincial rebate.

New Brunswick also provides a rebate of 50% of the purchase and installation of a home charger, up to $750.

Newfoundland and Labrador EV rebate

You can benefit from a $2,500 incentive for the purchase or lease of a new or used 100% battery-electric vehicle and $1,500 for the purchase or lease of a new or used plug-in hybrid vehicle. Note that you can only receive a rebate when you lease a vehicle if the lease is for at least 48 months.

The vehicle you buy or lease must be acquired from a licensed dealership located in Newfoundland and Labrador and registered for use within NL.

You can fill out the rebate form online after you have purchased or leased the vehicle, and you will receive the rebate as a cheque.

Prince Edward Island EV rebate

Prince Edward Island offers an EV rebate of up to $5,000 for new and used battery EVs and up to $2,500 for new and used plug-in hybrids. Used vehicles will qualify for the same rebates if their purchase price is a maximum of $55,000. Leased vehicles qualify for the full amount on 48-month leases and an adjusted amount for shorter leases.

You can also receive a $750 charging incentive for purchasing and installing a home charger or for charging costs if you are unable to install one.

If you buy the EV from a PEI dealership, you can get the iZEV incentive at the point of sale. This means they will take the rebate off the cost of your vehicle. If you buy your vehicle outside of PEI, you will need to apply for the rebate once you register your vehicle in Prince Edward Island.

Yukon EV rebate

Yukon provides an EV rebate of $5,000 for a new vehicle with an all-electric range of at least 50 kilometres and $3,000 for new vehicles with an all-electric range of less than 50 kilometres. 

If you lease the vehicle, your rebate will be pro-rated on the length of the agreement. You'll receive the full rebate if the lease lasts at least three years.

You can also benefit from an additional rebate of 50% on the purchase and installation of a home charger, up to a maximum of $750.

While there is no iZEV incentive for used EVs, you can get a rebate on the shipment of a ZEV you bought from another territory - 100% of the shipping costs up to a maximum of $1,500 per vehicle.