Introduction
Are you thinking about buying an electric vehicle in Canada? Good news! The government offers incentives to make it more affordable. This post will explain the main programs available: the iZEV Rebate Program and the Enhanced Capital Cost Allowance (CCA) for businesses.
The iZEV Rebate Program: Point-of-Sale Rebates
What is iZEV Rebate?
The Incentives for Zero-Emission Vehicles (iZEV) Rebate Program offers rebates when you buy or lease eligible electric vehicles.
How much can you save?
- Up to $5,000 for battery-electric, hydrogen fuel cell, and long-range plug-in hybrids (50 km+ electric range)
- $2,500 for shorter-range plug-in hybrids (under 50 km electric range)
Who’s eligible for iZEV Rebate?
- Individuals: One rebate per year
- Businesses: Up to 10 rebates per year
Vehicle eligibility for iZEV Rebate
To qualify, vehicles must:
- Be new or have less than 10,000 km on the odometer
- Have a base model MSRP under $55,000 for cars or $60,000 for larger vehicles
- Higher trims up to $65,000 for cars or $70,000 for larger vehicles are also eligible
Check the eligibility of your vehicle on this link.
How to get the iZEV Rebate?
The dealership applies the rebate at the point of sale. You’ll see it on your bill of sale or lease agreement.
Enhanced CCA for Businesses (Class 54)
What is it?
Businesses can write off a larger portion of the cost of zero-emission vehicles in the first year.
How much can you claim?
- Up to 100% of the vehicle’s cost, to a maximum of $55,000 plus taxes
Who’s eligible for Class 54 Enhanced CCA?
- Businesses and organizations that purchase zero-emission vehicles for business use. Check the eligibility of your vehicle on this link.
Important note
You can’t claim both the iZEV rebate and the enhanced Class 54 CCA for the same vehicle. Choose the option that benefits you most.
Flowchart below is visual representation of this decision tree:
Provincial Incentives
Many provinces offer additional rebates on top of the federal incentives:
- British Columbia: Up to $4,000
- Quebec: Up to $7,000
- New Brunswick: Up to $5,000
- Nova Scotia: Up to $3,000
Check your provincial government’s website for specific details and eligibility criteria.
Conclusion
These incentives make electric vehicles more affordable for Canadians. Whether you’re an individual or a business, you can save thousands on your new zero-emission vehicle purchase through iZEV Rebate or Enhanced Class 54 CCA.
As Canada aims for 100% zero-emission vehicle sales by 2035, now is a great time to consider making the switch to electric.
For more information, visit the Government of Canada’s iZEV Program website.
Looking for a tax consultation on this incentive specific to your situation? Reach out to our team here.