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After Quebec, Ottawa pulls the plug on Its zero-emission vehicle subsidy

durée 13h00
11 janvier 2025
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Jessica Brisson
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Par Jessica Brisson, Éditrice adjointe

Ottawa announced this Friday the suspension of its electric vehicle purchase subsidy program, originally launched in 2019. While the program was set to end on March 31, 2025, or when the allocated funds were fully used, it appears the conclusion is imminent.

"Due to high demand, the Zero-Emission Vehicle Incentive Program (iZEV) will be suspended before March 31, 2025," reads a statement on the government’s website.

The iZEV program offered up to $5,000 per eligible vehicle, depending on the type.

Since its inception, over 546,000 vehicles have benefited from incentives under the program. According to the federal government, this has helped Canada achieve a 11.7% market share for new zero-emission vehicles (ZEVs) in 2023—a significant increase from 3.1% in 2019. In the first three quarters of 2024 alone, the market share reached 14.2%, with a record 16.5% in the third quarter.

Applications submitted by dealers for eligibility assessment before the program's suspension will still be processed. However, if an eligible vehicle was ordered prior to the suspension and the dealer or authorized seller failed to submit an assessment request, buyers will not qualify for the incentive, as clarified by the government.

Businesses and organizations in Canada purchasing or leasing zero-emission trucks can continue to benefit from the Medium- and Heavy-Duty Zero-Emission Vehicle Incentive Program (iMHZEV). This program will remain in place until March 31, 2026, subject to fund availability.

Quebec’s program faces reductions

In Quebec, the provincial subsidy under the Roulez Vert program was reduced as of January 1, 2025. Subsidies for fully electric vehicles dropped from $7,000 to $4,000, and for new plug-in hybrids, from $5,000 to $2,000.

Further reductions are expected in 2026, with subsidies for fully electric vehicles decreasing to $2,000 and for plug-in hybrids to $1,000. The program is set to conclude entirely in January 2027.

However, the $600 subsidy for home charging station installations will remain intact.

Additionally, some municipalities, such as Vaudreuil-Dorion and Notre-Dame-de-l'Île-Perrot, continue to offer grants for the purchase and installation of charging stations.

 

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