Canada EV Rebate: How To Apply

Over the last few years, many drivers have started to reduce their carbon footprint by purchasing more environmentally friendly vehicles, namely electric vehicles (EVs) and hybrid cars. That said, such vehicles typically come with a steep price tag, discouraging many drivers from purchasing one. To overcome this financial barrier and incentivize Canadians to buy EVs and hybrid vehicles, governments at the federal and provincial level have offered rebate programs to make these vehicles more affordable. 

However, with recent changes in some of these programs, some car buyers may wonder whether buying an EV or hybrid makes financial sense.

Key Points

• The federal government of Canada offered rebates for consumers who purchased EVs and hybrid vehicles, but this program has been paused as of January 2025.
• Many provincial governments continue to offer rebate programs for eligible zero-emission vehicles (ZEVs).
• Be sure to consider whether you can qualify for a rebate to budget for the purchase of an electric or hybrid vehicle.

Federal EV Rebate In Canada: Zero-Emission Vehicles (iZEV) Program

The Incentives for Zero-Emission Vehicles (iZEV) Program was introduced in 2019 as a way to encourage drivers to purchase environmentally-friendly vehicles by helping to reduce the upfront costs. Only vehicles listed on the Canadian government’s website qualified for an incentive when they were purchased or leased for a minimum of 12 months on or after the date of eligibility. Eligible consumers qualified for an incentive of up to $5,000.

What Financial Incentives Do Provincial Governments Provide For Hybrid and Electric Cars?

Although the federal government no longer offers incentives for the purchase of electric vehicles or hybrids, some provincial governments offer their own incentives:

If you qualify, you may be able to combine the federal and provincial rebates to maximize your savings.

How To Claim The iZEV Rebate?

To receive your rebate, follow these steps:

Step 1: Check The Vehicle’s Eligibility

Make sure the vehicle you’re looking to purchase or lease is on the program’s approved list. 

Step 2: Visit A Car Dealership

Go to your dealership and let the salesperson know that you’re looking specifically for a hybrid vehicle or EV that qualifies for the rebate program in your province.  

Step 3: Sign The Consumer Consent Form

Fill out the Consumer Consent Form that the dealership provides you to verify your eligibility for the incentive.

Step 4: Complete The Transaction

Fill out the Incentive Received Form, after which the incentive will appear on your purchase or lease agreement. The dealership will submit the documentation necessary for the incentive reimbursement.

Is The Canada Electric Car Rebate Worth It?

Whether it’s worth buying a hybrid or EV just to receive a rebate depends on a few factors. Consider the following before choosing this route:

Your Travelling Style 

Some ZEVs can save you money on gas, especially if you go fully electric and consistently make short trips to the city, work, or the grocery store. However, electric cars may not be the greatest option for long-distance travelling because there are so few public charging stations in Canada. If you’re worried about that, you may want to go with a hybrid instead. 

Your Budget

ZEVs are relatively expensive, and a lot of drivers’ motivations revolve around the overall costs. When it comes to determining if the cost of a ZEV vehicle is worth it, you should take into consideration the initial price tag, any rebates you’ll be eligible for, and the yearly cost of fuel/charge cost. 

New Or Used ZEV 

Remember that you must buy or lease a new ZEV in order to qualify for the federal rebate, which may not be affordable for the everyday driver. If you want to buy used, you may not qualify.

Type Of ZEV

The potential costs and rebates of a ZEV can also vary depending on which car you buy or lease. For instance, hybrids may cost more to fuel than electric models if you use gas from time to time. While a regular car can be cheaper initially, fuelling is more expensive in the long run. 

Insurance

Many ZEVs are more expensive than regular gas-powered cars. As such, your monthly or yearly insurance premium could be higher if you buy or lease a hybrid or electric car. Your premium can also increase if you are below or above a certain age, you buy or lease a newer or more expensive model, or you have a poor driving history. 

Learn more: Insuring An Electric Car In Canada

Charging Stations

There are currently nearly 13,000 public charging stations across Canada, which is relatively low compared to the number of traditional gas stations you’ll find. So, unless you’re planning to buy a long-range vehicle or install a private charger at your home or business, a ZEV may not be the most convenient or worthwhile choice. 

Features, Repairs, And Environmental Impact

The more features you want in your ZEV, the higher its price and insurance costs can be. A fully electric car will usually cost more than a base model hybrid. Plus, maintenance costs for ZEVs can be higher because fewer mechanics are experienced with them. However, the fact that you’re leaving a smaller carbon footprint can be worth the extra cost.

Final Thoughts

If you qualify for a rebate in your province, you could realize significant savings. Unfortunately, the federal government’s rebate program recently ended. Before you make a car purchase, find out whether the province you live in has an incentive program, and whether your vehicle qualifies.

Additional Reading

Going Green: Tax Credits, Rebates, and Government Programs

How To Finance An Electric Or Hybrid Car

How Much Is The Sales Tax On Cars In BC?

Canada EV Rebate FAQs