Canadians gather! If you’re looking to go electric, there is an expansive program at your disposal offering varying levels of incentives for EV purchases and leases in Canada. We’ve compiled everything you need to know below, alongside an ever-growing list of vehicles that qualify.
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EV incentives remain available in Canada
As a US-born citizen, much of my coverage of incentives in the past has pertained to my native country. However, a reader recently pointed out that a Canada-centric version of my long-running list of available US tax incentives would be welcomed by consumers up north as well.
My deepest apologies, Canada – I had no intention of leaving you in the dark for this long. As many of you are probably aware, there are purchase incentives for EVs available to consumers in Canada that are currently much more abundant (and easier to qualify for) than current US credits.
Good on you, Canada, and all the more reason to take advantage of the nation’s Incentives for Zero-Emission Vehicles (iZEV) Program. Below, you will find the details of the incentive program itself, how a given vehicle can or cannot qualify, and how you yourself can take advantage of the deals for going electric.
Lastly, we have compiled the current and up-to-date list of vehicles that qualify for purchase incentives per Transport Canada. Let’s begin with the program itself.
How the Incentives for Zero-Emission Vehicles (iZEV) Program works
Like all government-regulated programs, there is a lot of legal jargon and red tape to navigate through. Sometimes you just want to know what qualifies and what doesn’t.
Luckily for consumers up north, Canada’s iZEV program is relatively straightforward, and the government does a wonderful job of explaining it. Per Transport Canada:
The iZEV Program offers point-of-sale incentives for consumers (subject to funding availability) who buy or lease a ZEV vehicle. 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.
What types of EV incentives are available in Canada?
In total, there are three different types of electric vehicles that currently qualify for some level of incentives in Canada. From there, plug-in hybrids are divided one step further based on the all-electric range their batteries can deliver. Here’s how the incentive amounts currently breakdown:
Battery-electric (BEV), hydrogen fuel cell (FCEV), and longer-range plug-in hybrid vehicles (PHEV) are eligible for up to $5,000CAD.
To qualify as “longer range plug-ins,” the vehicles must have an electric range equal to or greater than 50 km.
Shorter-range plug-in hybrid electric vehicles are eligible for up to $2,500CAD.
Shorter-range plug-in vehicles have an electric range under 50 kilometers.
Ford Mustang Mach-E (Source: Ford)
What electric vehicles qualify for incentives in Canada?
In Canada, a slew of all-electric and plug-in hybrid electric vehicles qualify for at least some amount of incentives as long as they meet the qualifications laid out by Transport Canada. For example, each vehicle must meet all of the country’s Motor Vehicle Safety Standards.
Additionally, each qualifying vehicle must be built for driving on public streets, roads, and highways (no low-speed vehicles). The vehicle must also have at least four functioning wheels. Sorry, Aptera.
Qualifying vehicle types are split into two separate groups, which qualify for their own respective purchase incentives based on price:
A passenger car, where the base model manufacturer’s suggested retail price (MSRP) is less than $55,000CAD.
Higher-priced trims of those EVs may also qualify for purchase incentives in Canada for a maximum MSRP of $65,000CAD.
A station wagon, pickup truck (light truck), SUV, minivan, van, or special purpose vehicle, where the base model MSRP is less than $60,000 CAD.
Higher-priced trims of these vehicles are also eligible for purchase incentives for MSRPs up to $70,000 CADmaximum.
Per Transport Canada, here are other terms zero-emission vehicles must follow as part of the incentive program:
Only new vehicles are eligible for the federal incentive (EVs that haven’t been plated before).
Eligible ZEVs that were previously demo vehicles used for test drives are considered new vehicles and are eligible for the incentive as long as the odometer reads less than 10,000 kilometers.
Incentives can be applied to eligible ZEVs leased for at least 12 months but will be prorated based on any lease length of less than 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. (See table below.)
Vehicles are still eligible for the incentive even if delivery, freight, and other fees (like exterior color, add-ons, accessories, and packages) push the actual purchase price over these set limits.
As long as a given EV’s make, model, trim and year appears on Transport Canada’s list of eligible vehicles, an incentive can be awarded.
We have compiled those qualifying lists for you below.
Qualifying battery electric vehicles (BEVs)
As promised, here are the current battery electric vehicles (BEVs) that qualify for purchase incentives per Transport Canada. We will ensure this list is updated regularly so you’re getting the most up-to-date details.
Note: All incentive amounts are in Canadian dollars.
Make, Model, Year(s)
Incentive for Full Purchase / 48–Month Lease
36-Month Lease
24-Month Lease
12-Month Lease
AUDI
Q4 e-tron Quattro (2022)
$5,000
$3,750
$2,500
$1,250
Q4 50 e-tronQuattro (2023)
$5,000
$3,750
$2,500
$1,250
BMW
i3 s (2018-2021)
$5,000
$3,750
$2,500
$1,250
i4 eDrive40 (2022-2023)
$5,000
$3,750
$2,500
$1,250
i4 eDrive34 (2023)
$5,000
$3,750
$2,500
$1,250
CHEVROLET (GM)
Bolt LT/2LT/Premier/2LZ (2018-2021)
$5,000
$3,750
$2,500
$1,250
Bolt LT (2022)
$5,000
$3,750
$2,500
$1,250
Bolt EV LT (2023)
$5,000
$3,750
$2,500
$1,250
Bolt EUV LT/Premier (2022-2023)
$5,000
$3,750
$2,500
$1,250
FORD
Focus Electric (2018)
$5,000
$3,750
$2,500
$1,250
Mustang Mach-E (all trims) (2022-2023)
$5,000
$3,750
$2,500
$1,250
HYUNDAI
IONIQ 5 (2023) Preferred/ Preferred Long Range/ Preferred AWD Long Range
$5,000
$3,750
$2,500
$1,250
IONIQ 5 (2022) Essential/Preferred/Preferred Long Range/Preferred AWD Long Range
$5,000
$3,750
$2,500
$1,250
IONIQ 6 (2023) Preferred RWD Long Range/ Preferred AWD Long Range
$5,000
$3,750
$2,500
$1,250
Kona Electric Preferred/Preferred (2-tone)/ Ultimate (2022-2023)
$5,000
$3,750
$2,500
$1,250
Kona Electric Essential/Preferred/ Preferred (2-tone)/ Ultimate (2020-2021)
$5,000
$3,750
$2,500
$1,250
Kona Electric Essential/Preferred/ Preferred (2-tone)/ Ultimate (2020-2021)
$5,000
$3,750
$2,500
$1,250
Kona Electric Preferred/Ultimate (2019)
$5,000
$3,750
$2,500
$1,250
Ioniq Electric Preferred/Ultimate (2019-2021)
$5,000
$3,750
$2,500
$1,250
Ioniq Electric SE/SE CCP/Limited (2017-2018)
$5,000
$3,750
$2,500
$1,250
KIA
EV6 RWD Standard Range/RWD Long Range/AWD Long Range (2022-2023)
$5,000
$3,750
$2,500
$1,250
Niro EV Premium/Premium+/Limited (2023)
$5,000
$3,750
$2,500
$1,250
Niro EV EX/EX+/SX Touring (2021-2022)
$5,000
$3,750
$2,500
$1,250
Niro EV EX/SX Touring (2019-2020)
$5,000
$3,750
$2,500
$1,250
Soul EV Premium/Limited (2021-2023)
$5,000
$3,750
$2,500
$1,250
Soul EV Luxury/Luxury Sunroof/ Premium/Limited (2017-2020)
$5,000
$3,750
$2,500
$1,250
MINI
Cooper SE Base/Premier Line 2.0/Premier+ Line 2.0 (2024)
$5,000
$3,750
$2,500
$1,250
Cooper SE 3 Door/Hatch (2022-2023)
$5,000
$3,750
$2,500
$1,250
Cooper SE 3 Door Classic/Premier/ Premier+ (2020-2021)
$5,000
$3,750
$2,500
$1,250
MAZDA
MX-30 GS/GT (2022-2023)
$5,000
$3,750
$2,500
$1,250
MITSUBISHI
i-MiEV (2017)
$5,000
$3,750
$2,500
$1,250
NISSAN
Ariya (all trims) (2023)
$5,000
$3,750
$2,500
$1,250
LEAF SV/SV Plus/SL Plus (2023)
$5,000
$3,750
$2,500
$1,250
LEAF SV/S Plus/SV Plus/SL Plus (2021-2022)
$5,000
$3,750
$2,500
$1,250
LEAF S/SV/S Plus/SV Plus/SL Plus (2020)
$5,000
$3,750
$2,500
$1,250
LEAF S/SV/SL/S Plus/SV Plus/SL Plus (2018-2019)
$5,000
$3,750
$2,500
$1,250
POLESTAR
2 Long Range Single Motor/Long Range Dual Motor (2023-2023)
$5,000
$3,750
$2,500
$1,250
smart
EQ fortwo cabriolet (2018-2019)
$5,000
$3,750
$2,500
$1,250
EQ fortwo coupe (2018-2019)
$5,000
$3,750
$2,500
$1,250
fortwo electric drive coupe (2017-2018)
$5,000
$3,750
$2,500
$1,250
fortwo electric drive coupe (2017-2018)
$5,000
$3,750
$2,500
$1,250
SUBARU
Solterra AWD (2023)
$5,000
$3,750
$2,500
$1,250
TESLA
Model 3 RWD (2023)
$5,000
$3,750
$2,500
$1,250
Model Y RWD/Long Range AWD (2023)
$5,000
$3,750
$2,500
$1,250
TOYOTA
bZ4X L FWD/LE FWD/XLE AWD (2023)
$5,000
$3,750
$2,500
$1,250
VOLKSWAGEN
ID.4 RWD/Pro RWD/Pro AWD (2023)
$5,000
$3,750
$2,500
$1,250
ID.4 Pro/Pro AWD (2021-2022)
$5,000
$3,750
$2,500
$1,250
e-Golf Comfortline (2017-2020)
$5,000
$3,750
$2,500
$1,250
VOLVO
C40 Recharge (2023)
$5,000
$3,750
$2,500
$1,250
XC40 Recharge (2022-2023)
$5,000
$3,750
$2,500
$1,250
Last updated May 11, 2023.
The Hyundai IONIQ 6 / Credit: Hyundai North America
Plenty of plug-in hybrid electric vehicles (PHEVs) also qualify
Whereas battery EVs all qualify for up to $5,000 in incentives in Canada, PHEVs are a bit trickier and vary in eligible amounts based on a number of factors, including the make, model, and trim. Still, many models qualify for at least some level of purchase incentives and are worth checking.
Here are electrified models which currently qualify in Canada:
How long will incentives from Canada’s iZEV Program be available?
The Incentives for Zero-Emission Vehicles (iZEV) Program is continuing until March 31, 2025 (or until available funding is exhausted).
How much money does the EV purchase incentive offer in Canada?
That number varies based on a number of factors. Simply put, any vehicle that meets Canada’s criteria outlined above can qualify for at least $625 and can go as high as $5,000.
How do I receive Canada’s ZEV incentive?
The incentive is applied at the point of sale by the dealership when you purchase your brand-new EV. It will appear directly on the bill of sale or lease agreement on eligible ZEVs on, or after, the eligibility date.
Note: The dealer must apply taxes and fees to the purchase or lease before applying the incentive and must submit the proper documentation to be reimbursed for the incentive provided to you, the consumer.
Can my vehicle purchase also qualify for provincial or territorial incentives?
Yes. In addition to the federal incentive program, your EV purchase may also qualify for any additional incentives offered in your given province or territory in Canada.
Can I use a tax write-off for my ZEV purchase if I receive a federal incentive?
No. It must be one or the other. Budget 2019 provided a separate tax write-off for zero-emission vehicles to support business adoption. For more information on tax write-offs for electric vehicles, contact the Canada Revenue Agency at 1-800-959-5525.
Can I qualify for federal incentives for more than one EV purchase?
Depends. Canadian individuals are eligible for one incentive under this program per calendar year. Businesses or provincial/territorial and municipal governments operating fleets are eligible for up to 10 incentives under the iZEV program per calendar year.
How do Canada’s federal EV incentives compare to the United States?
Great question. Currently, more electric vehicles in Canada qualify for incentives, but it’s a lot of the same vehicles. Qualifying terms also vary with neighbors to the south following the signing of the Inflation Reduction Act by President Biden in the summer of 2022. You can check out the US’ current federal tax credits for EVs here.
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The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.
With the Trump Administration fully in power and Federal electric vehicle incentives apparently on the chopping block, many fleet buyers are second-guessing the push to electrify their fleets. To help ease their minds, Harbinger is launching the IRA Risk-Free Guarantee, promising to cover the cost of anticipated IRA credits if the rebate goes away.
In the case of a Harbinger S524 Class 5 chassis with a 140 kWh battery capacity with an MSRP of $103,200, the company will offer an IRA Risk-Free Guarantee credit of $12,900 at the time of purchase, bringing initial cost down to $90,300. This matches the typical selling price of an equivalent Freightliner MT-45 diesel medium-duty chassis.
“We created (the IRA Risk-Free Guarantee) program to eliminate the financial uncertainty for customers who are interested in EV adoption, but are concerned about the future of the IRA tax credit,” said John Harris, Co-founder and CEO of Harbinger. “For electric vehicles to go mainstream, they must be cost-competitive with diesel vehicles. While the IRA tax credit helps bridge that gap, we remain committed to price parity with diesel, even if the credit disappears. Our vertically integrated approach enables us to keep costs low, shields us from tariff volatility, and ensures long-term price stability for our customers.”
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Harbinger recently revealed a book of business consisting of 4,690 binding orders. Those orders are valued at approximately $500 million, and fueled a $100 million Series B raise.
Electrek’s Take
Harbinger truck charging; via Harbinger.
One of the most frequent criticisms of electric vehicle incentives is that they encourage manufacturers and dealers to artificially inflate the price of their vehicles. In their heads, I imagine the scenario goes something like this:
you looked at a used Nissan LEAF on a dealer’s lot priced at $14,995
a new bill passes and the state issues a $2500 used EV rebate
you decide to go back to the dealer and buy the car
once you arrive, you find that the price is now $16,995
While it’s commendable that Harbinger is taking action and sacrificing some of its profits to keep the business growing and the overall cause of fleet electrification moving forward, one has to wonder how they can “suddenly” afford to offer these massive discounts in lieu of government incentives – and how many other EV brands could probably afford to do the same.
Whoever is left at Nikola after the fledgling truck-maker filed for Chapter 11 bankruptcy protection last month is probably having a worse week than you – the company issued a recall with the NHTSA for 95 of its hydrogen fuel cell-powered semi trucks.
That complaint seems to have led to the posthumous recall of 95 (out of about 200) Nikola-built electric semi trucks.
The latest HFCEV recall is on top of the 2023 battery recall that impacted nearly all of Nikola’s deployed BEV fleet. Clean Trucking is citing a January 31, 2025 report from the NHTSA revealing that, as of the end of 2024, Nikola had yet to complete repairs for 98 of its affected BEVs. The ultimate fate of those vehicles remains unclear.
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Electrek’s Take
Image via Coyote Container.
I’ve received a few messages complaining that I “haven’t covered” the Nikola bankruptcy – which is bananas, since I reported that it was coming five weeks before it happened and there was no “new” information presented in the interim (he said, defensively).
Still, it’s worth looking back on Nikola’s headlong dive into the empty swimming pool of hydrogen, and remind ourselves that even its most enthusiastic early adopters were suffering.
“The truck costs five to ten times that of a standard Class 8 drayage [truck],” explained William Hall, Managing Member and Founder of Coyote Container. “On top of that, you pay five to ten times the Federal Excise Tax (FET) and local sales tax, [which comes to] roughly 22%. If you add the 10% reserve not covered by any voucher program, you are at 32%. Thirty-two percent of $500,000 is $160,000 for the trucker to somehow pay [out of pocket].”
After several failures that left his Nikola trucks stranded on the side of the road, the first such incident happening with just 900 miles on the truck’s odometer, a NHTSA complaint was filed. It’s not clear if it was Hall’s complaint, but the complaint seems to address his concerns, below.