Program overview
Transportation is the second largest source of greenhouse gas (GHG) emissions in Canada, accounting for a quarter of Canada’s total GHG emissions with almost half of these emissions coming from cars and light trucks. One way to reduce the amount of transportation-related GHG emissions is to put more zero-emission vehicles (ZEVs) on the road.
The Government of Canada knows that the higher upfront purchase cost of zero-emission vehicles (ZEVs) can make it more difficult to adopt this clean technology. The Incentives for Zero-Emission Vehicles (iZEV) Program is helping to make it more affordable.
In order to encourage the adoption of ZEVs by Canadians and Canadian businesses, the Government of Canada launched the Incentives for Zero-Emission Vehicles (iZEV) Program in May 2019. There are many different makes and models of eligible zero-emission vehicles for purchase or lease (over 12 months) that offer eligible consumers with an incentive of up to $5,000.
Purchase and lease incentives
The iZEV Program offers point-of-sale incentives for eligible consumers (subject to funding availability) who buy or lease an eligible ZEV. Only the vehicles listed on our website are eligible for an incentive when they’re purchased or leased for at least 12 months, on or after the eligibility date.
Note that 12-month leases will be prorated (adjusted) based on the length of a lease of 48 months. For example, a 48-month lease is eligible for the full incentive, while a vehicle with a 24-month lease will be eligible for half the incentive.
As of March 28, 2023, carsharing companies that are pre-approved by Transport Canada are eligible to receive up to 50 incentives per calendar year on eligible vehicles.
Types of incentives
There are two levels of incentives:
• Battery electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles are eligible for up to $5,000;
— longer-range plug-in hybrid vehicles have an electric range equal to or greater than 50 km.
• Shorter range plug-in hybrid electric vehicles are eligible for up to $2,500;
—shorter range plug-in hybrid vehicles have an electric range under 50 km.