Through this article, we would like to seek your attention on one of the basic needs in current times i.e., vehicle. This article will discuss Electric Vehicle incentives in Canada. This is the financial support provided by the government of Canada to the people who are planning to buy an EV in Canada.
But, one thing needs to be considered in mind that all electric vehicles are not eligible to access EV incentives. But there is a list of vehicles on which an individual can demand the incentive. Let us understand what are those vehicles, why are those limited vehicles have been put into the category of incentive, and what are the requirements that are considered while providing incentives.
EV Incentive in Canada
The EV incentives range from 2500 CAD TO 5000 CAD for eligible electrically operating vehicles purchased or leased in Canada. This is the program that has been introduced by the Canadian government to encourage people to choose electric vehicles on vehicles operated by fuel. Introducing and promoting EVs can be considered a smart way to protect the environment from harmful gases emitted by fuel combustion in vehicles.
The high craze of having vehicles as well need to have one, leading to hazardous environmental problems. It is important to take control of them and governmental agencies or authorities in different nations are trying their best to cope with the situation and EV Incentive surely is one of them.
Let us understand the Electric Vehicle Incentive
There are two types of EV Incentives- one is 2500 CAD and another one is 5000 CAD. What incentive is provided on which vehicle depends on the range and type of vehicle? The incentive of 2500 dollars has been decided by the authorities for the vehicles that fall under the category of short-range i.e., the vehicles having a range under 50 kilometers. While longer-range plug-in hybrid, hydrogen fuel cells, and battery-electric vehicles have longer range, i.e., more than 50 km, and for such vehicles 5000 CAD incentive is marked.
EV Incentive Canada: Eligibility
Transport Canada has set some eligibility criteria that an EV should meet for the incentive. The vehicle must pass the zero-emission test and be compelled to meet the safety standards set by all the nations. Vehicle types eligible for purchase incentives in Canada are categorized into two groups based on their manufacturer’s suggested retail price (MSRP).
The first group includes passenger cars, with a qualification threshold set at an MSRP below $55,000 CAD for the base model. However, higher-priced trims of these electric vehicles (EVs) can still benefit from incentives, provided their maximum MSRP does not exceed $65,000 CAD.
The second group comprises pickup trucks (light trucks), station wagons, SUVs, minivans, special-purpose vehicles, and vans. For this category, the base model’s MSRP should be less than $60,000 CAD to qualify for purchase incentives. Similar to passenger cars, the higher-priced trims of these vehicle types can also receive incentives, but the maximum MSRP allowed is $70,000 CAD.
These explained thresholds help structure and tailor purchase incentives to accommodate varying vehicle types and price ranges, promoting the adoption of electric vehicles across different segments of the market.
EV Incentive Canada: Types
Electric Vehicle Incentive Programs are mainly of four types:
iZEV: Through this program, one may access the maximum incentive of 5000 dollars. For this program, two-wheeler vehicles are not eligible like scooters, bikes, and motorcycles. This program is not eligible to buy old vehicles.
iMHZEV: Under this program, the Canadian government provides a maximum incentive of 200,000 dollars, and the program is eligible for heavy-duty zero-emission vehicles and heavy-duty zero-emission vehicles. These vehicles are expensive to buy, thus the government aims to make these vehicles affordable for customers. Conversions are not applicable to this program.
ZETP: It refers to the Zero-Emission Trucking Program, an initiative started by the government of Canada to accelerate the safe deployment of MHZEV.
ZEV charging stations: The adequacy of charging stations remains a worry for numerous Canadians when acquiring a zero-emission vehicle (ZEV). In an effort to overcome this challenge, the Government is offering financial support for the ongoing enlargement of the network of ZEV charging and refueling stations in locations where Canadians reside, work, and spend leisure time. Funding is accessible for EV charging in Workplaces, On streets, multi-unit residential buildings, commercial fleets, and public spaces. The present objective of the Zero Emission Vehicle Infrastructure Program is to aid in the deployment of 33,500 EV chargers and 10 hydrogen refueling stations.
Who is getting an Electric Vehicle Incentive?
Canadians who plan to purchase or lease an eligible electric vehicle may get these incentives. One may either choose the option of cash purchases or go for the finance option. What purchase method an individual chooses does not impact the incentive eligibility of a vehicle.
Vehicle dealers cannot charge any extra fee for the iZEV program from the customers, if they are found to do so, the authorities will send them a warning letter and if dealers continue to do unethical practices their license will be seized from the program.
FAQs Related to EV Incentive Canada
Yes, demonstrator vehicles are qualified for the incentive but it is important that its odometer reading should not be more than 10,000 kilometres
No, two-wheelers or e-bikes like motorcycles and scooters are not considered to be eligible under the program.
Yes, undoubtedly it is possible to lease vehicles on an incentive basis.