Electric vehicles: more models eligible for the federal rebate

Effective April 25, 2022, the Government of Canada’s Zero Emission Vehicle (iZEV) Incentive Program will be expanded to include the purchase of an additional number of models, including SUVs and pickup trucks. These incentives can be up to $5,000.

The announcement was made Friday noon, as part of Earth Day, by the Canadian Minister of Transport, Omar Alghabra.

First, Ottawa is increasing the manufacturer’s suggested retail price (MSRP) that serves as a limit for base models from $45,000 to $55,000. Their more expensive versions are also eligible. In their case, the maximum MSRP increases from $55,000 to $65,000.

Then, larger vehicles like SUVs, pickups and vans – one might think of the Ford F-150 Lightning – will qualify for the rebate provided their MSRP is under $60,000. The exact criteria (weight, size, number of seats, etc.) remain to be specified. It could go up to $70,000 for the more expensive versions.

Photo: Ford

At the same time, we learn that the federal government has changed the definition of eligible plug-in hybrid vehicles. From now on, instead of being based on the capacity of the battery, the subsidy will depend on the autonomy offered. Thus, plug-in hybrids capable of traveling 50 km or more in electric mode will receive $5,000 and those below this threshold will continue to be eligible for $2,500.

Recall that the 2022 federal budget proposes to invest $1.7 billion to extend the iZEV program until March 2025, to provide $547.5 million over four years to launch a new purchase of medium and heavy-duty zero-emission vehicles (the terms and conditions will be announced this summer) and to invest $400 million in new money for the installation of charging stations across the country.

In addition, as announced at the end of March, the Government of Canada will pressure automakers to have zero-emission vehicles account for at least 20% of new light-duty vehicle sales by 2026, 60% of by 2030 and 100% by 2035.

In video: how to explain the long delivery times of electric models?


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