The Government of Canada tabled its new budget this afternoon and we learn that the incentive program for the purchase of an electric vehicle will be extended until 2025.
The federal government also said eligibility for the program will be expanded “to support the purchase of more vehicle models, including vans, trucks and sport utility vehicles.” Details will be communicated by Transport Canada in the coming weeks.
For now, the Canadian government is giving a $5,000 subsidy to buyers of electric vehicles (and some plug-in hybrid models). However, only vehicles with a Manufacturer’s Suggested Retail Price (MSRP) under $45,000 are eligible. Models with seven or more passengers can be considered if their MSRP does not exceed $55,000.
The announcement of the Canadian budget leaves room for speculation, but we understand that the program could soon include more expensive vehicles, which would of course increase the number of eligible models.
According to Transport Canada, more than 136,000 new electric vehicles have been leased or purchased since the implementation of this subsidy in 2019.
Other measures
Among the other measures announced in the budget to promote the transition to electric vehicles, the Government of Canada has formalized the upcoming implementation of a Zero Emissions standard: a sales obligation under which zero-emission vehicles (ZEVs) must represent at least at least 20% of sales of all new light-duty vehicles in Canada by 2026, at least 60% of sales by 2030 and 100% of sales by 2035.
An investment of $400 million will also be used to finance a national network of charging stations, particularly in more remote regions.
In Quebec
Remember that in Quebec, the Roulez vert program was recently extended until 2027. The provincial government took the opportunity to slightly lower the amounts granted to buyers of electric vehicles.
For a 100% electric model, the subsidy offered by Quebec goes from $8,000 to $7,000 Plug-in hybrid vehicles are now capped at a $5,000 rebate while assistance for used electric vehicles has been lowered to $3,500 instead of $4000.
In Quebec, eligible new vehicles must have an MSRP of less than $60,000.