Thursday, April 25, 2024
NewsQuebec to Abolish EV Incentives in 2027

Quebec to Abolish EV Incentives in 2027

Electric vehicles will no longer receive provincial incentives in Quebec starting on January 1st 2027.

  • The provincial subsidy for brand new EVs will be reduced to $4,000 in 2025 and $2,000 in 2026 before being abandoned.

  • The subsidy for residential charging stations remains for the time being.

  • The $5,000 federal incentive will also be phased out by the 31st of March 2025.

In yesterday’s budget, the Quebec government announced that it will end the subsidy for electric and plug-in hybrid vehicles in 2027.

Launched in 2012, the Roulez-Vert program allows buyers of a new vehicle to receive up to $7,000 in provincial incentives for an EV, or up to $5,000 for a hybrid model with a battery of at least 15 kWh.

From the outset, this program was considered temporary, and the end of the incentives was scheduled for when electric vehicles had reached a sufficiently high level of popularity.

Since more than one in five vehicles sold in Quebec last year was powered by electrons, and the price gap between gasoline-powered models and EVs has narrowed in recent years, the Finance Minister believes it is no longer necessary to dip into public funds to encourage their purchase.

What’s more, the government now believes there are more effective ways of spending the money previously invested in the Roulez-Vert program to combat climate change, notably by focusing on EV charging.

This means that as of January 1, 2025, motorists will only be entitled to $4,000 for the purchase of a new electric vehicle, or $2,000 for a plug-in hybrid.

2024 Hyundai Kona EV | Photo: Germain Goyer

In January 2026, these amounts will be further reduced to $2,000 and $1,000 respectively, before being completely phased out on January 1, 2027.

It should be noted, however, that the subsidy program for the installation of charging stations, which provides up to $600 for residential use and $5,000 for professional use, will remain unchanged for the coming years.

Here is a table showing the changes to be expected for the purchase of different types of vehicles:

PeriodUntil December 31st 2024From January 1st 2025From January 1st 2026From January 1st 2027
New EV$7,000$4,000$2,000$0
New PHEV $5,000$2,000$1,000$0
Used EV$3,500$2,000$1,000$0
Electric scooter$2,000$1,000$500$0
Low-Speed electric scooter$500$0$0$0
Residential charging station$600$600$600$600

 

Although the end of subsidies was expected, many are concerned about the speed with which the government intends to proceed, including the Corporation des concessionnaires automobiles du Québec (CCAQ).

This organization, which represents 98% of all dealers in the province, describes the decision as “incomprehensible”, and predicts that sales of environmentally-friendly vehicles will suffer.

Flo charging station

The effects of abandoning the program could even be felt immediately in the case of certain manufacturers for whom deliveries take several months, since the rebate only applies when owners receive their new car.

What’s more, the federal rebate on EVs is also coming to an end, as Ottawa has announced that subsidies of up to $5,000 for eligible electric vehicles will expire when the allocated sums run out, or by March 31, 2025 at the latest.

This means that a vehicle that currently benefits from both rebates, totalling a reduction of $12,000, will receive only $4,000 in rebates in just over a year’s time.

It will be interesting to see whether manufacturers will adjust the MSRP of their models downwards so that they remain competitive with gasoline-powered vehicles, but it does raise questions about the ability to meet provincial fleet electrification targets.

Indeed, the CAQ still hopes to see over 2 million electric vehicles on Quebec roads by 2030, despite the fact that there are currently only around 240,000 of them.

Source: Radio Canada

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