Canada is making significant strides in promoting electric vehicle (EV) adoption in 2025. With both federal and provincial programs offering enhanced rebates, Canadian drivers now have more incentives than ever to switch to eco-friendly, electric transportation.
The combined savings from federal and provincial rebates can total up to $12,000 when purchasing a qualifying EV. These rebates make sustainable choices more accessible and financially attractive, aligning with the country’s commitment to addressing climate change.
This article provides a comprehensive breakdown of Canada’s electric vehicle rebate programs, highlighting eligibility criteria, how the rebates work, and which vehicles qualify.
Key Details of Canada’s Electric Vehicle Rebates
Overview of Available Rebates
| Feature | Details |
|---|---|
| Federal Rebate (iZEV) | Up to $5,000 (paused as of Jan 2025) |
| Top Provincial Rebate (Quebec) | Up to $7,000 |
| Total Possible Savings | Up to $12,000 (combined federal and provincial) |
| Eligible Vehicle Types | Battery Electric Vehicles (BEVs), Plug-in Hybrids (PHEVs), Hydrogen Fuel Cell Vehicles |
| Rebate Availability | Varies by province; federal funds exhausted |
| Where to Apply | At dealership (rebate applied at point of sale) |
| Resources | tc.canada.ca, plugndrive.ca |
The iZEV program, which previously offered a $5,000 federal rebate, is now paused due to fully allocated funds. Despite this, provinces such as Quebec continue to offer substantial rebates, with savings of up to $7,000 in some regions.
These programs significantly reduce the upfront cost of purchasing an EV, which is often one of the primary barriers for buyers.
A Closer Look at Provincial Rebate Programs
Canada’s provincial rebate programs are key to the success of the national push for electric vehicle adoption. Let’s break down the offerings by some major provinces:
Quebec
- Rebate: Up to $7,000
- Eligibility: Available for new BEVs, PHEVs, and long-range hybrids.
- Program: Roulez Vert
British Columbia
- Rebate: Up to $4,000
- Eligibility: Applies to new electric and hydrogen vehicles.
- Additional Incentive: $2,000 via the SCRAP-IT program for older trade-ins.
Nova Scotia
- Rebate: Up to $5,000
- Eligibility: Available for both new and used EVs, with income-based additional rebates.
Prince Edward Island
- Rebate: Up to $5,750
- Eligibility: Applies to new and used EVs and charging equipment, with extra incentives for low-income households.
Other Provinces
- New Brunswick: Up to $5,000
- Yukon: Up to $5,000
- Manitoba, Alberta, Saskatchewan, Ontario: No active provincial rebates as of May 2025.
Which EVs Qualify for the Rebates?
The rebates primarily apply to affordable, mass-market EVs rather than luxury models. Below are some popular eligible models:
| Model | Federal Rebate | Top Provincial Rebate | Total Savings |
|---|---|---|---|
| Tesla Model 3 (RWD) | $0 (federal paused) | $7,000 (QC) | $7,000 |
| Hyundai Kona Electric | $0 | $4,000 (BC) | $4,000 |
| Chevrolet Bolt EUV | $0 | $7,000 (QC) | $7,000 |
| Nissan Leaf SV Plus | $0 | $4,000 (BC) | $4,000 |
| Ford Mustang Mach-E | $0 | $5,000 (NS) | $5,000 |
Note: Check with your dealership to confirm eligibility and rebate amounts based on your province and trim level.
Why Was the Federal Rebate Paused?
The iZEV program, which was instrumental in helping over 250,000 Canadians purchase cleaner vehicles, was paused in January 2025. The budget allocated to the program was exhausted, and as of now, there is no new funding.
This pause has shifted the focus to provincial rebates, which continue to play a crucial role in encouraging the transition to electric vehicles.
How to Claim Your EV Rebate
- Choose an Eligible Vehicle: Research the list of qualifying vehicles available on your provincial website.
- Visit an Approved Dealership: Ensure the dealership is equipped to apply rebates at the point of sale.
- Complete the Purchase: The dealer submits necessary documents to the government agency, and the rebate is deducted from the vehicle’s total price before taxes in most cases.
- Drive Away and Start Saving: With lower fuel costs and minimal maintenance needs, your new EV will not only save you money but also help the environment.
Canada’s expanded electric vehicle rebates in 2025 make it easier than ever for Canadians to embrace sustainable transportation. With rebates of up to $12,000 available in provinces like Quebec, EV adoption is becoming more financially accessible.
While the federal rebate program has been paused, provincial incentives remain a valuable resource for those looking to make the switch to electric.
By understanding the available rebates, eligible vehicles, and the application process, Canadians can make informed decisions that benefit both their budget and the environment.
FAQs
Which provinces offer the highest EV rebates in 2025?
Quebec currently offers the highest rebates, with savings of up to $7,000. Other provinces like British Columbia and Nova Scotia also offer significant incentives.
Are luxury EVs eligible for the rebate?
Typically, luxury vehicles do not qualify for these rebates. Most rebates are available for affordable, mass-market EVs like the Tesla Model 3, Hyundai Kona Electric, and Chevrolet Bolt.
Can I apply for rebates if I’m buying a used EV?
Yes, provinces like Nova Scotia and Prince Edward Island offer rebates for both new and used electric vehicles, along with additional incentives for low-income households.