Canadian government pauses EV subsidy

The iZEV Program offered a rebate of $5,000 toward the purchase of qualifying vehicles for first-time zero-emissions vehicle buyers.

EV plugged into charger
The Canadian government has paused the iZEV program. – Photo by Kindel Media on Pexels.com

The Government of Canada has paused its Incentives for Zero-Emissions Vehicles (iZEV) Program.

The stoppage was announced on the Government of Canada’s iZEV Program web page. It officially paused Jan. 12.

“The Incentives for Zero-Emission Vehicles (iZEV) Program funds have been fully committed. Consequently, the iZEV Program has now officially paused,” the update on the web page states.

The program launched in 2019 to incentivize vehicle buyers to purchase zero-emissions vehicles, such as battery-electric vehicles, fuel cell electric vehicles and plug-in hybrids.

It offered $5,000 toward the purchase price of qualifying vehicles for first-time ZEV buyers. Plug-in hybrid vehicles required a minimum electric driving range of 50 kilometres to qualify for the full amount. Plug-in hybrids with a lower range were still eligible for a rebate of $2,500.

The intent of the program was to continue until March 31, 2025 or until funds ran out. It appears the funds have run out.

There is no indication whether the program will return.

What EV buyers need to know

The ending of the iZEV Program does not impact the Canadian government’s rebate for commercial EVs, called Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV). It also doesn’t impact provincial or territorial rebate programs.

Only iZEV applications submitted by the dealership or authorized seller that were pre-approved by Transport Canada prior to the program’s pause on Jan. 12 may be reimbursed. There will be no exceptions.

“If your dealership successfully submitted your eligibility assessment application and it was pre-approved, you will receive the incentive despite the program pause, provided the new vehicle you are buying or leasing is on the program’s eligible vehicles list,” a post on the government website said.

“If you ordered an eligible vehicle before the pause of the program and your dealership/authorized seller did not submit an eligibility assessment application before the program paused, you will not be eligible to receive the incentive.”

EV buyers are advised to check with their dealership or authorized seller regarding the status of their application.

Quebec subsidy pause

Multiple provinces continue to offer EV rebates.

An online posting on the Quebec government’s subsidy, called the Roulez vert program, states that province’s rebate will be paused from Feb. 1 to March 31.

“Due to the high number of applications received by the Roulez vert program in recent months, the program will be temporarily suspended from February 1 to March 31, 2025. This suspension applies to financial assistance for electric vehicles and charging stations,” an update on the Quebec government’s website states.

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