The government of Canada is adding a $5,000 incentive on electric vehicles starting on May 1st.
UPDATE: We have updated the list to reflect the new Tesla Model 3 Standard range which is priced at $44,999 announced on May 1.
Starting on May 1 2019, electric vehicles will be eligible for a $5,000 rebate from the government of Canada under its new iZEV incentive program. The EV incentive program will provide Canadian consumers with an added reason to look into buying an electric vehicle.
The program is divided into two parts and covers 27 new vehicles currently on sale in Canada. There are 10 plug-in hybrid vehicles on the list which get a $2,500 rebate, and 17 electric vehicles counting versions that get $5,000. These rebates are stackable with rebates offered by provincial governments. In other words, buyers in Quebec will get an additional $8,000 over the $5k while EV buyers in British Columbia get an extra $5,000.
To qualify, vehicles need to cost less than $45,000 which means that no Tesla model is eligible and that certain models will likely review their pricing structure. Just recently Hyundai announced that they were lowering the price of the Hyundai Kona EV by $600 to be eligible for the iZEV program.
It should be noted, however, that some of the models on the following list like the Chrysler Pacifica Hybrid, Honda Clarity Plug-in Hybrid and Chevrolet Volt are not 100 percent electric and do have a gasoline engine included within their powertrain. That said, the battery powering their electric motors has a capacity that’s higher than 15-kWh (meaning more range) and they therefore qualify for the full $5,000 iZEV incentive.
Moreover, $5,000 is the maximum allowable rebate and buyers need to either purchase the vehicle or lease it for 48 months. The following rebates apply for shorter leases:
- 12-Month Lease: $1,250
- 24-Month Lease: $2,500
- 36-Month Lease: $3,750
The government of Canada lists 17 eligible electric vehicles for its $5,000 rebate, but this list includes versions of the various models. We simplified the list somewhat.
And now, let’s look at the 12 electric vehicles eligible for the $5,000 iZEV incentive program in Canada. The prices shown are before rebates.
2018 and 2019 Chevrolet Bolt – $44,800
2018 and 2019 Chevrolet Volt – $40,195
2017, 2018 and 2019 Chrysler Pacifica – $36,995
2018 Ford Focus Electric – $34,998
2019 Honda Clarity Plug-in Hybrid – $40,100
2019 Hyundai IONIQ Electric – $37,899
2019 Hyundai Kona EV – $44,999
2019 Kia Niro PHEV – $44,995
2017, 2018, 2019, 2020 Kia Soul EV – $42,595
2018 and 2019 Nissan LEAF – $40,698
Tesla Model 3 Standard Range – $44,999
Volkswagen e-Golf – $36,720
2018 and 2019 smart Fortwo – $29,050