The Canadian government is dedicated to making it easier for Canadians to switch to cleaner transportation options. Recognizing that the initial cost of zero-emission vehicles (ZEVs) can be a hurdle, they have established the Incentives for Zero-Emission Vehicles (iZEV) Program. This initiative is designed to make these environmentally friendly vehicles more affordable for consumers across the country.
What Incentives are Available for Zero-Emission Vehicles in Canada?
The iZEV Program provides point-of-sale incentives to eligible individuals and organizations when they purchase or lease qualifying ZEVs. These incentives directly reduce the upfront cost, making electric and plug-in hybrid vehicles more accessible. To be eligible for an incentive, the vehicle must be listed on the official government website and be purchased or leased for a minimum of 12 months, starting from its eligibility date.
It’s important to note that for leases shorter than 48 months, the incentive is adjusted proportionally. For instance, a 24-month lease receives half the incentive amount compared to a 48-month lease, ensuring fair distribution of benefits. You can easily find out which vehicles qualify for an incentive and their specific eligibility dates on the government’s dedicated vehicle list.
How Do You Receive the Canada Car Program Incentive?
Receiving the incentive is a straightforward process handled directly at the dealership. When you are ready to purchase or lease an eligible ZEV, the dealership will confirm your eligibility for the iZEV incentive. As part of this verification, you will need to complete a simple Consumer Consent Form. Once confirmed, you’ll fill out an Incentive Received Form, and the incentive amount will be clearly deducted from the vehicle’s price on your bill of sale or lease agreement.
The dealership applies the incentive before taxes and fees, ensuring you benefit from the full intended reduction in cost. Crucially, you should not need to make a deposit to secure the incentive, and it will not be provided as a later reimbursement. Dealerships are responsible for submitting the necessary documentation to be reimbursed for the incentive they provide, so consumers do not need to apply for reimbursement themselves. This federal incentive can also be combined with any electric vehicle incentives offered by provincial or territorial governments, potentially increasing your savings even further.
Are There Limits to the Number of Incentives?
Yes, to ensure broad access to the iZEV Program, there are limits on the number of incentives available per calendar year:
- Individuals: Limited to one incentive per calendar year.
- Organizations and Businesses: Eligible for up to 10 incentives annually. Affiliated organizations or businesses under common ownership (excluding publicly traded companies) are considered a single entity and share this limit of 10 incentives.
- Provincial, Territorial, and Municipal Governments: Fleets operated by these government bodies are also limited to 10 incentives per year.
- Carsharing Companies: Companies pre-approved by Transport Canada can access up to 50 incentives per calendar year, supporting the growth of shared electric mobility.
The iZEV Program actively monitors these limits and reserves the right to recover incentives if a recipient exceeds the allowed number in a calendar year.
Incentives for Carsharing Programs
Carsharing companies play a vital role in expanding access to ZEVs. To be eligible for the iZEV Program, a carsharing company must:
- Be a registered organization, either not-for-profit or for-profit, with a valid business number.
- Operate a membership or subscription-based program that offers members 24/7 self-service access to a fleet of vehicles for regular use, typically charged by the minute or hour.
Carsharing companies interested in participating in the iZEV Program need to be approved by Transport Canada. To apply, companies should contact [email protected]. Approved carsharing companies can receive up to 50 incentives per year for eligible ZEV purchases or leases made on or after March 28, 2023. Eligibility is determined and maintained at the discretion of Transport Canada.
What Types of Canada Car Program Incentives Are Available?
The iZEV Program offers two levels of incentives based on the type and range of the zero-emission vehicle:
- Up to $5,000: For battery-electric vehicles, hydrogen fuel cell vehicles, and plug-in hybrid vehicles with a longer electric range (50 km or more).
- Up to $2,500: For plug-in hybrid vehicles with a shorter electric range (under 50 km).
These incentive levels are designed to encourage the adoption of a range of ZEV technologies, from fully electric to plug-in hybrid options.
Need More Information?
If you have further questions about the Canada Car Program and the iZEV incentives, you can reach out to the program directly at [email protected]. For general inquiries, you can also contact 1-800-O-Canada (1-800-622-6232) toll-free.
