Monday, November 28, 2022
News Canada Considering Revising Federal Electric Vehicle Subsidies

Canada Considering Revising Federal Electric Vehicle Subsidies

  • Canada’s current iZEV electric vehicle rebates program could be revised to better meet the needs of Canadians

  • The program would include upcoming electric trucks and SUVs which currently wouldn’t qualify

  • Current iZEV program offers up to $5,000 in rebates on the purchase of eligible electric vehicles

The federal government is considering expanding the terms of its electric vehicle subsidy program to accommodate the growth of the segment and better meet the needs of Canadians.

The news comes from Canada’s Transport Minister Omar Alghabra. Under the current federal iZEV program, an electric vehicle must first have a starting price of less than $45,000 and only its versions priced below $55,000 can then qualify.

Toyota bZ4X
Toyota bZ4X | Photo: Louis-Philippe Dube

These restrictions will quickly become restrictive given the vast majority of new electric trucks and SUVs scheduled to hit the market in the next few years that will have starting prices above the current limit.

“The vast majority of vehicles purchased today are SUVs and pickup trucks, and while [zero-emission vehicle] options are becoming available for these segments, many of them will be sold outside of the current iZEV program,” said Alghabra.

In its current form, the iZEV program offers no incentives for the current offering of 100% electric sport utility vehicles. Upcoming models like the Ford F-150 Lightning with its anticipated starting price of $58,000 would not qualify for the federal program.

Ford F-150 Lightning
2022 Ford F-150 Lightning | Photo: Ford

The new iZEV program could also consider used electric vehicles that are currently excluded at the federal level. Only Quebec provides a subsidy for the purchase of a pre-owned EV.

More Money for Electric Vehicles

The federal government promised during the most recent election campaign to dedicate $1.5 billion to the iZEV program. Launched in 2019, the program planned for $300 million over three years initially, but the funds ran out in less than 24 months. The program provides up to $5,000 in rebates for eligible electric vehicles and $2,500 for hybrid vehicles.

The federal program complements existing programs in British Columbia and Quebec that provide up to $3,000 and $8,000 in rebates for the purchase of an electrified vehicle, respectively.

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Charles Jolicoeur
Charles Jolicoeur was studying to be a CPA when he decided to drop everything and launch a car website in 2012. Don't ask. The journey has been an interesting one, but today he has co-founded and manages 8 websites including EcoloAuto.com and MotorIllustrated.com as General Manager of NetMedia360. He also sits on the board of the Automotive Journalists Association of Canada. Send me an email

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