How To Get Your Electric Car Rebate in 2021

Whether you’re a seasoned driver or looking for your first ride, the environmental and economic impact of a combustible engine is likely becoming a more prominent factor in your vehicle purchase decision. That’s why automakers are paying closer attention to a growing segment of consumers wanting electric vehicles. Whether it’s plug-in hybrid vehicles or fully electric, automakers like Hyundai, Ford, Kia, Tesla, Volkswagen, Nissan, BMW, Toyota and more, are hustling to meet consumer demand.

There’s a lot to consider when choosing what kind of plug-in hybrid electric vehicle (PHEV) or battery-powered electric vehicle (BEV) to buy. Unlike when you buy a conventional emission vehicle at the dealership, both federal and provincial offer various vehicle rebates and incentives that can take a big chunk off the sticker price.

We’re going to take you through a step-by-step guide on what you need to know about electric car rebates, which vehicles are eligible and what are the cheapest electric cars in Canada, so you can lighten your carbon load and save cash at the same time!

EV rebates in Canada

When the now-governing federal Liberals released their pre-election platform this year, it included a laundry list of initiatives to encourage electric vehicle adoption. Most importantly was an additional $1.5 billion investment in Canada’s popular incentive program iZEV (the "i" stands for incentive), which offers buyers up to $5,000 in rebates when buying a zero-emission vehicle (ZEV).

What does Canada consider a ZEV? Battery-electric, plug-in hybrid, and hydrogen fuel cell all qualify. The program has two tiers: battery-electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles are eligible for an incentive of $5,000, while shorter-range plug-in hybrid electric vehicles are eligible for an incentive of $2,500. 

To qualify, the retail price has to be under $45,000 (there are some exceptions based on seat capacity or nicer version “trims”) and the vehicle has to be on this list of iZEV-approved models. Your rebate comes at point-of-sale from a dealership (or online), and you must buy a brand new vehicle to qualify (unless stated otherwise).

EV rebates by province or territory

Not all provinces and territories offer EV rebates and incentives, but here are the regions that do.

British Columbia

The Feds aren’t the only level of government encouraging you to go electric with your next purchase. British Columbia offers a high voltage package of electrical vehicle incentives, including up to $3,000 for buying new BEVs, PHEVs, and fuel cell vehicles priced under $55,000.

BC also offers something called the “SCRAP IT” program, where you can get between $3,000 and $6,000 more for trading in your old fuel-burning gas guzzler for an electric vehicle. This incentive applies to purchases of both new and used EVs. There’s even a rebate for home charging installations for up to $2,000, depending on if you live in a condo, apartment or house. In total, you could be receiving up to $14,000 off an EV purchase if you check all the right boxes.

Quebec

Quebec doesn’t have anything like BC’s “SCRAP IT” program, but it is a little more generous with their new vehicle rebate system. You can get up to $8,000 when buying or leasing a new PHEV or BEV, but you have to keep the purchase under $60,000 – unlike BC where the limit is $55,000. Couple this with the federal program and you could be looking at up to $13,000 off your purchase price! As of April 2021, Quebec has over 100,000 all-electric and plug-in hybrid vehicles on its roads.

Ontario

Unfortunately for those EV-interested drivers in Ontario, the Conservative government under Doug Ford scrapped its provincial electric vehicle rebate program in September 2018. That’s a shame for those looking to find the cheapest electric vehicle in Ontario because it once offered rebates as high as $14,000, depending on make and model, before “unplugging” the program. However, there is a rebate of up to $2,000 available for used electric vehicle purchases combined with a scrappage incentive being offered by a non-profit group called Plug ‘N Drive.

New Brunswick

New Brunswick recently introduced an electric vehicle rebate program to go with the federal iZEV program. You can receive up to $5,000 on new models and $2,500 on used electric vehicles, which is quite similar to the federal program. The offer is “stackable” meaning you can use both provincial and federal rebates together for a combined $10,000 at its max. The province wants to see 20,000 EVs on the road by 2030.

Nova Scotia

Nova Scotia introduced its provincial rebate – Electrify Nova Scotia Rebate Program – in February 2021 with a point-of-purchase rebate of up to $3,000 on new vehicles ($2,000 on used vehicles). The vehicle must be a BEV or PHEV and with an MSRP price under $60,000 depending on seating capacity and trim. Combined with the federal program, you could get up to $8,000 back on a new EV purchase.

Prince Edward Island 

The most generous provincial EV rebate program in Canada (without a trade-in component) was introduced in P.E.I. starting in April 2021. You can get up to $5,000 on a new or used EV purchase, while hybrids qualify for $2,500. That brings you up to $10,000 combined with the federal rebate. On top of the rebate, the province will throw in a free Level 2 charger, though installation charges are your responsibility. 

Newfoundland & Labrador

Joining the Maritime ranks of provinces offering EV rebates, Newfoundland now provides an “Electric Vehicle Accelerator” incentive of $2,500 for new models. Add that rebate to the federal campaign and you could get up to $7,500 to drive an EV around Newfoundland and Labrador.

Yukon

In an effort to see more EVs on the road (and less emissions in the sky), the Yukon government is offering a $5,000 rebate for purchases on new zero-emission vehicles. This offer is available retroactively, meaning it can be claimed for any purchases on November 14, 2019 or later. There’s also a rebate for Level 2 home chargers. Combined with the iZEV rebate, you could receive up to $10,000 back on a new EV purchase.

How to get your electric vehicle rebate

You might think that collecting your electric car rebate would be a cumbersome task of endless paperwork to various levels of government, but in fact, it’s quite the opposite. Your rebate is obtained at point-of-purchase, meaning the car dealership is responsible for all that boring paperwork and ensuring you get the full electric car rebate you’re entitled to.

If you’re buying in a lease situation, your rebate can be prorated depending on the lease arrangement. For example, with the federal rebate, a 48-month lease is eligible for the full incentive while a 24-month lease gets you half the incentive.

For businesses looking to buy an electric vehicle for commercial purposes, say you’re a travelling sales rep or delivery driver, Canada offers a full tax write-off for certain ZEVs in the year they are put into commercial use. The tax write-off is limited to $55,000, plus federal and provincial taxes paid.

What are the cheapest, iZEV-approved electric vehicles?

Now that you know all about iZEV-eligible vehicles and your rebate entitlements, check out some of the cheapest electric cars in Canada right now!

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