Getting a Charge Out of It: EV rebates for Canadians

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With so many models, options, and financing selections, buying a new car can sometimes feel like frantically navigating a warren of dark alleyways. On stage. On fire. In front of the newly crowned King. Confusion can reign, choices can be murky, and there’s often the underlying impression that someone is judging your every move – usually the finance guy who’s wearing gas station cologne. Toss in an array of available rebates for electric vehicles – presented in typically Byzantine government fashion, natch – and you’ve a situation ripe for headaches.

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We can’t help you avoid the finance clerk’s terrible aftershave but we can absolutely help steer you through the various and sundry EV rebates which are on offer going into 2023. Our information has been hauled directly from federal and provincial government sources and are correct as of this writing. We will endeavour to keep up with any changes and revise this table as required.

Buying the EV

Prior to diving into the deep end of federal legalese, we thought it a good idea to give a nod towards forward-thinking brands which permit shoppers to buy their EVs completely online without the need to step foot into a showroom. Tesla — despite any and all other views one may have about the brand — was arguably a pioneer in this area. It is possible to simply hit up their website, enter some details, select a few option boxes, and have a Tesla arrive at a delivery point near your home within a few weeks (or however long the supply chain permits). It’s a similar story at Genesis, which has the added advantage of a wide network of bricks-and-mortar locations at which to pick up the keys.

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There are some used car outlets which go a step further, handling all the decision-making online and then delivering the vehicle right to your door on the deck of a flatbed truck. We mention this because, as you’ll see below, some jurisdictions have rebate money on the table for the purchase of second-hand EVs. It is also worth mentioning there is money to be had in some areas covering some installation costs of Level 2 chargers in residential homes.

EV rebates for all Canadians

With changes to the federal iZEV program coming into effect earlier this year, some readers may not be fully charged up with information about which vehicles are eligible for which rebates. Here’s the Coles Notes for what’s on tap headed into 2023.

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The Government of Canada offers point-of-sale incentives of up to $5,000 for consumers who buy or lease an EV. Currently, all pure electric and hydrogen fuel cell vehicles qualify for the full amount, as do plug-in electric hybrids which can travel more than 50 kilometres without lighting the fires in their gasoline engine. Examples of the latter include the Mitsubishi Outlander PHEV and the Toyota RAV4 Prime. PHEVs which cannot reach that mark are granted a $2,500 spiff.

Note well: customers only get the five grand if they buy a qualifying vehicle outright or lease it for 48 months. Sums drop to $3,750 and $2,500 for 36- and 24-month leases, respectively, while a 12-month lease will net $1,250. Vehicles which qualified for a maximum iZEV rebate of $2,500 see their numbers drop by the same percentages for short-term leases.

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Sticker pricing (MSRP) also plays a key role in determining whether the vehicle gets any largesse from Ottawa. A passenger car must offer a base model with an MSRP of less than $55,000; higher priced trims of this same vehicle, up to a maximum MSRP of $65,000, will also be eligible for purchase incentives.

A station wagon, pickup truck (light truck), sport utility vehicle (SUV), or minivan needs to have a base model wearing an MSRP of less than $60,000. Higher priced trims of these same rigs may show stickers up to a maximum sticker of $70,000 and remain eligible for federal rebates.

Of course, these rebates apply to four-wheeled road-going vehicles which meet Motor Vehicle Safety Standards and are meant for use on public streets at highway speeds.

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Additional rebates by province

It wouldn’t be Canada if all our provinces weren’t being so bloody-minded, dead set on waving their own flag and — in this case — creating their own EV rebate system to layer on top of the federal programs. Some are more generous than others, whilst a few are notably absent from the table altogether.

For the sake of brevity and at the behest of our Department of Redundancy Department, we’ll mention here that all provinces which offer their own rebates hew to make/model/price eligibility criteria outlined above for the federal iZEV program.

Newfoundland & Labrador

We’re starting in the East since that province is generally treated like an afterthought and lists like this tend to kick off on the Left Coast; plus, your author is a Newfoundlander and he’s the one assembling this post.

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You can save $2,500 on the purchase or lease of a 100 per cent all-electric vehicle and $1,500 for a plug-in hybrid. The rebate is an initiative of the Government of Newfoundland and Labrador and is administered by Newfoundland Hydro. Rebates are available to eligible individuals, businesses, not-for-profit organizations, or municipalities in the province. Vehicles are eligible through the purchase or lease (minimum 48 months) of a new 100 per cent all-electric vehicle or plug-in hybrid. A pre-owned 100 per cent all-electric vehicle or plug-in hybrid also qualifies under those guidelines.

Nova Scotia

Bluenosers can avail themselves of $3,000 from government coffers if they purchase a qualifying battery-electric vehicle or long-range plug-in hybrid as defined by the fed’s iZEV program. Short-range PHEVs will net $2,000. Used car shoppers are not left out in the cold, with second-hand BEVs priced from $10k – $55k eligible for a $2,000 rebate and PHEVs of any range priced from $10k – $40k good for a $1,000 addition to yer bank account.

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Prince Edward Island

Hey, Ontario — you seeing this? Even the nation’s smallest province has a sensibly administered EV program. The Government of P.E.I. is providing $5,000 to Islanders who purchase a new or used EV. Also on offer is $2,500 to those who buy a plug-in hybrid. In addition, Islanders who utilize the incentive (both BEV and PHEV) will receive a free Level 2 charger. Islanders will be responsible for all installation costs associated with charging infrastructure. Only one charger will be given per household.

New Brunswick

Programs administered by Plug-In NB provide electric vehicle rebates for new and used electric vehicles. Sums and criteria precisely mirror that of Ottawa’s iZEV: $5,000 for a new BEV or long-range PHEV on a purchase or 48-month lease, $2,500 on a short-range PHEV under the same terms, and proportioned rebates for shorter term leases on those cars. Plug-In NB also provides $2,500 for a used BEV selling for between $10k and $60k, or a thousand bucks on a used PHEV topping out at ten grand less.

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Quebec

La Belle Province is known for its rapid EV adoption, partially driven by these rebates but also supported by robust public charging infrastructure. All new electric vehicles with an MSRP less than $60,000 qualify for $7,000 from le government, while long- and short-range PHEVs are good for for $5,000 and $2,500, respectively, again with a sticker price south of 60 grand. The eligible list of new vehicles is similar to iZEV with a few notable differences — including a couple of Tesla models. The rebate for a qualifying used electric vehicle is $3,500.

British Columbia

Skipping way across the country — over Ontario and all the prairie provinces — we find B.C. and their rebate program which has a unique twist compared to all the others which we have examined. Cars with a maximum MSRP of $55,000 and larger vehicles (wagons, minivans, SUVs, et al) priced up to $70,000 may qualify. However, the Pacific province also considers an individual’s income when determining total rebates.

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If applicants make less than $80,000 per year, the rebate is $4,000. Extending ones income to $90,000 halves the rebate to $2,000; making up to six figures of annual income cuts the rebate to just a grand. Anyone who makes over $100,001 per annum is out of luck.

Yukon

Yes, Yukon. Despite the propensity of cold temperatures to take a bite out of battery range, the northern territory is encouraging the adoption of EVs — which is good. To qualify, pickup trucks must have an MSRP of below $70,000 for the base trim of a model, while all other vehicle types need to bear a sticker of less than $60,000 for entry level trim. The alarmingly wide-open category of “optional equipment” is not included in this figure.

Similar to the federal program, pure EVs and PHEVs with an all-electric range of over 50 kilometres qualify for $5,000 rebate (ditto for hydrogen fuel cell cars); PHEVs with a range of less than 50km can take $3,000 from government coffers.