You're in the market to buy an electric vehicle but wondering how much it will cost after government rebates. Wonder no more!
We break down all the ways that you'll save money through existing federal and provincial rebate or incentive programs for electric vehicles so that you know the true cost of your car before buying it.
Federal rebates for electric vehicles
The Government of Canada offers Incentives for Zero-Emission Vehicles (iZEV). So, what does that mean for consumers purchasing an electric car?
The first thing you need to know is what kinds of cars are eligible for the incentives. For the purpose of the program, the federal government considers battery-electric, plug-in hybrid electric and hydrogen fuel cell cars to be zero-emissions vehicles (ZEV). In fact, a car can qualify as a ZEV if it has an internal combustion engine so long as it can also operate without using it. Not sure if the car you want qualifies for the incentive? Check out the list of eligible vehicles.
The next thing you need know is that there are two levels of incentives under the iZEV program. The federal government offers up to $5,000 in incentives if you're buying a battery-electric, hydrogen fuel cell, or longer-range plug-in hybrid vehicle with a battery capacity of at minimum 15 kilowatt-hours (kWh). However, if you are purchasing a short range plug-in hybrid car with a battery capacity of less than 15 kWh, you are only eligible for $2,500 in incentives.
The good news is that all incentives are applied when you buy the car from the dealership. That means that while you will have to pay taxes and fees on the full price or lease amount, you will not have to pay the incentive amount out of pocket and then have to apply for the rebate. The dealer simply applies it and it appears as paid on the bill of sale or lease agreement.
Still have questions? Be sure to visit the iZEV website for more information..
Tax write-offs for business
If you run a business and want to add electric vehicles to your fleet, the Canada Revenue Service offers tax write-offs to make it more affordable. You can get 40% or up to 100% in deductions off the purchase price if you are purchasing the vehicles to rent or lease or if you're operating a taxi service.
If you're not leasing out the vehicle or operating a taxi service, you can still save big. You're eligible to get 30% or up to 100% of the cost of the vehicle as a deduction depending on the vehicle you buy up to $55,000 plus sales tax.
For more information about how large of a deduction you might qualify for, visit Canada Revenue Agency's website.
While not all provinces offer additional rebates for electric vehicles, some do. If you live in British Columbia or Quebec, for example, you will save more when you purchase an electric car.
British Columbia offers a program called CleanBC Go Electric incentive program that provides up to $3,000 towards the purchase or lease of a new hydrogen fuel cell, battery electric or longer range hybrid electric car. You can get $1,500 towards the purchase or lease of a shorter range hybrid electric car.
Wondering what types of cars qualify for the discount? Find out here.
New Brunswick offers incentives for people who purchase or lease new or used electric cars at dealerships in the province. You can get up to $5,000 if you buy a new battery electric vehicle or a new long range plug-in hybrid electric car. You can get $2,500 if you buy either a new short range plug-in electric vehicle or a used battery electric vehicle. Buying a used short range plug-in electric vehicle? You're eligible for up to $1,000. You can also get $750 for a home electric vehicle charging station.
The province also offers up between $1,250 and $5,000 to lease a battery electric vehicle and between $621 and $2,500 to lease a short range plug-in electric car depending on the length of the lease.
Newfoundland and Labrador
Residents can get up to $2,500 towards the purchase or lease of an all-electric car. The program's rebates are available on a first come, first serve basis.
Nova Scotia offers up to $3,000 to purchase a new electric vehicle and up to $3,000 lease a new vehicle. The rebates are available on a first come first serve basis and are only available for battery electric vehicles and plug-in hybrid electric vehicles. How much you will qualify for will depend on the type of car you're buying or the length of your lease.
Ontario offers two incentives for EV drivers through the non-profit Plug'n Drive. You can get $1,000 towards the purchase of a used fully electric car through the Used EV incentive program. The car must have a resale price of less than $50,000 before taxes.
You can also get $1,000 towards the purchase of a used fully electric or plug-in hybrid electric car if you scrap your fuel burning car. These two incentives can be combined to get up to $2,000 back.
Quebec offers an incentive program aimed at individuals, organizations, municipalities, and businesses that allows purchasers to get up to $8,000 in rebates when they buy or lease a new electric vehicle.
How much you will get back will depend on the type and price of your car. For example, if you buy an all-electric or hydrogen powered car with a manufacturer's suggested retail price (MSRP) of less than $60,000, you will get a rebate of $8,000. However, if you purchase a plug-in hybrid vehicle with an MSRP price of less than $60,000, you will get a rebate of $500, $4,000 or $8,000 depending on the capacity of the battery.
Buying an electric motorcycle? You can get $2,000 in rebates for a conventional bike and $500 in rebates for a limited-speed bike.
Wondering what types of vehicles are eligible? You can find out here if your dream car is on the list.
Buying a car can be expensive, which is why choosing an electric vehicle is a good idea. While it might be obvious that you'll save money on gas and maintenance with an electric car, incentive programs throughout Canada mean that you can also save on the sale price or lease amount of your car.
Depending on which province you live in and what kind of car you buy, your savings could be significant. Which means, of course, that if you're stocking up on cash for a car, you could be in your new wheels and on the open road for a fun, zero emissions, road trip in no time.