Electric Vehicle Subsidies Reduced to $2,000 in Quebec

• Amounts allocated for the purchase of electric or plug-in hybrid vehicles will be cut in half starting January 1, 2026.

• Used EVs and PHEVs with a battery larger than 15 kWh will be entitled to $1,000, while buyers of a PHEV with a smaller battery will only be eligible for $500.

• The “Roulez vert” program will be completely abolished after December 31, 2026.

In accordance with what was announced in March 2024, the Government of Quebec will reduce the amounts granted for the purchase of an electric or plug-in hybrid vehicle starting January 1, 2026.

The amounts, which had already been significantly reduced a year ago, will now reach only $2,000 for the purchase or long-term lease of a new electric vehicle.

This represents a 50% cut to the subsidy that was intended to help the province reach its goal of having 2 million electric vehicles on the roads.

Due to the economic instability caused by the trade war with the United States and its impact on the Canadian automotive industry, Quebec reviewed its ban on the sale of new gasoline vehicles—scheduled for 2035—in September.

Now, the government is aiming for a proportion of 90% of new vehicles to be electric and plug-in hybrid models.

This halving of the maximum amount granted under the Roulez vert program applies to other eligible categories as well.

Thus, drivers acquiring a new plug-in hybrid vehicle with a battery larger than 15 kWh, as well as those who purchase a used electric vehicle, cannot expect to obtain more than $1,000 from the government.

In the case of plug-in hybrid vehicles with a battery capacity between 8 kWh and 15 kWh, $500 may be granted to buyers.

The same amount will also be available for the purchase of an electric motorcycle.

It is worth recalling that just over a year ago, the maximum sum available for the purchase of a new electric vehicle was $7,000; the amounts for a used EV or a large-battery PHEV were $5,000 and $3,500 respectively, while small-battery PHEVs could receive $2,500.

Electric motorcycles were eligible for a $2,000 rebate, and another category, since abolished, allowed for a $500 rebate for the purchase of a limited-speed electric motorcycle.

Let’s not forget that the federal government’s iZEV program used to deduct another $5,000 from the price of a new electric or plug-in hybrid vehicle (with an electric range of over 50 km).

This means that until January 1, 2025, Quebecers could receive up to $12,000 in subsidies for the purchase of a new EV.

Given that the federal rebate was cancelled early last year, only the $2,000 granted by the provincial government will be offered to Quebecers buying an electric model in the coming months.

It will be interesting to see what effect this decrease in subsidies will have on electrified vehicle sales, which have suffered a significant decline since the beginning of 2025.

Indeed, although the prices and interest rates of most electric vehicles have been revised downwards in response to the decrease in subsidies, demand has also dropped drastically.

According to Statistics Canada, sales of zero-emission vehicles fell by 43.3% between September 2024 and September 2025, which is representative of the situation for the entire year.

This cannot be explained solely by a reduction in sales industry-wide, since the market share of EVs went from 18.2% of new vehicles sold in September 2024 to only 10.2% in September 2025.