Quebec Budget Extends EV Rebates, Sets 2027 Phase-Out Date

• Quebec will offer $4,000 EV rebates and $2,000 PHEV rebates until being phased out January 2027.

• New annual fees for electric vehicle owners will generate $380 million by 2030.

• Free access to toll bridges and ferries for green-plated vehicles ends April 2027.

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The Quebec government confirmed the extension of its “Roulez vert” electric vehicle rebate program in the 2025-2026 budget released Tuesday, while simultaneously announcing the incentives will be completely phased out by January 2027.

Finance Minister Eric Girard delivered the budget on March 25, outlining continued support for transportation electrification alongside a clear timeline for transitioning away from purchase incentives. The Roulez vert program will resume on April 1, 2025, offering rebates for electric and plug-in hybrid vehicles.

The maximum rebate for new fully electric or fuel cell vehicles will be $4,000, while new plug-in hybrids will qualify for up to $2,000. Both categories must have a purchase price under $65,000 to be eligible. Used electric vehicles will receive $2,000 in rebates, and electric motorcycles will be eligible for $1,000.

However, these incentives are now officially temporary. The budget document states: “The rebates for purchasing electric vehicles will be gradually reduced and will cease to be offered for vehicles registered from January 1, 2027.”

$380 Million Revenue Expected from New EV Fees by 2030

The budget marks a significant policy shift, transitioning from subsidizing electric vehicle adoption to ensuring EV owners contribute to infrastructure costs. Beginning January 1, 2027, Quebec will implement a new annual fee for electric and plug-in hybrid vehicle owners, which the government projects will generate approximately $380 million in revenue by 2029-2030.

In addition, vehicles with green license plates will lose their free access to toll bridges and certain ferries starting April 1, 2027. The government expects this change to generate an additional $75 million in revenue by 2029-2030.

“In order to ensure the sustainability of funding for transportation infrastructure and services, the government is announcing two initiatives to ensure that owners of electric and plug-in hybrid vehicles, as users of the road network and beneficiaries of public transit, contribute to their financing,” the budget document explains.

The decision reflects the growing maturity of the electric vehicle market in Quebec, which has had purchase incentives in place since 2012. The government appears to be signaling that as EV adoption increases, the focus must shift toward sustainable funding models for transportation infrastructure.

The budget measures create a clear timeline for electric vehicle owners and potential buyers in Quebec: rebates will continue for approximately 21 months before ending permanently, with new fees taking their place three months later.