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Canada iZEV Electric Car Incentive Program Begins May 1

Starting May 1, electric cars and plug-in hybrid cars will be eligible for a government incentive of up to $5,0000 Canadian. The rebate also applies to leased cars, with some conditions.

While the United States hems and haws about the federal tax credit for electric vehicles, its cousins to the north in Canada have a mostly coherent policy that will provide a $5,000 rebate to some electric car buyers (this and all subsequent amounts are in Canadian dollars, which are worth 75 cents compared to US dollars at the moment). The program is called iZEV and goes into effect on May 1.

iZEV electric car rebate Canada

One of the complaints about the US federal tax credit is that it puts money in the pockets of wealthy people instead of middle and working class people who could benefit the most from such largess. The Canadian program address this issue by capping the sales price of any car with 6 or fewer seats at $45,000.

One oddity is that the cap only applies to the base price of the car. The actual final price may be as much as $55,000 as long as a base model is available for $45,000 or less. If a vehicle seats 7 or more, the base price can be up to $55,000 as long as the final out the door price does not exceed $60,000.

Before you even ask, no, there are no Tesla models that qualify for the iZEV program. Even the $35,000 entry level Model 3 (if you can find one) misses the base price cutoff by $1,670 when translated to Canadian dollars, according to Electrive. The Kia Niro Electric does, however, as Kia has priced it at exactly $44,495 in Canada.

Plug-in hybrid vehicles are included in the iZEV program. They are eligible for the full $5,000 if they have a 15 kWh battery or larger. That makes the Chrysler Pacifica Hybrid eligible for the full rebate, for example. PHEVs with smaller batteries, like the Audi A3 e-tron, qualify for half the normal incentive. Leased vehicles qualify but must be leased for at least 48 months to get the full amount. The rebate is 25% for a 1 year lease, 50% for a 2 year lease, and 75% for a 3 year lease.

Dealer demos are eligible provided they have fewer than 10,000 kilometers on the odometer. Used cars are not eligible. Municipalities and other government groups can purchase up to 10 qualifying vehicles. Oddly, multiple rebates are not available to businesses.

Need to know if a particular vehicle qualifies and for how much? Follow this link to see all the cars currently available in Canada that are eligible for the iZEV rebate program and how much the rebate is for each one.

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Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or anywhere else the Singularity may lead him. You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook.


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