Connect with us

Published

on

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.

Table of contents

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 $5,000 CAD.
    • 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 $2,500 CAD.
    • Shorter-range plug-in vehicles have an electric range under 50 kilometers.
Ford-Europe-battery-plant-1
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 $55,000 CAD.
    • Higher-priced trims of those EVs may also qualify for purchase incentives in Canada for a maximum MSRP of $65,000 CAD.
  • 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 CAD maximum.

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 / 48Month 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-tron Quattro (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.
Canada EV incentives
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:

Make, Model, Year(s) Incentive for Full Purchase / 48Month Lease 36-Month Lease 24-Month Lease 12-Month Lease
AUDI
A3 Sportback e-tron (2017) $2,500 $1,875 $1,250 $625
BMW
330e RWD/xDrive (2021-2023) $2,500 $1,875 $1,250 $625
X3 xDrive30e (2021-2022) $2,500 $1,875 $1,250 $625
i3 w/Range Extender (2018-2021) $5,000 $3,750 $2,500 $1,250
i3 s w/Range Extender (2018-2021) $5,000 $3,750 $2,500 $1,250
CHEVROLET
Volt LT/2LT/Premier/2LZ (2018-2019) $5,000 $3,750 $2,500 $1,250
CHRYSLER
Pacifica Hybrid Touring L/Limited/ Pinnacle (2022-2023) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L-Plus/Limited/Pinnacle (2021) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L /Limited (2020) $5,000 $3,750 $2,500 $1,250
Pacifica Hybrid Touring/Touring L Touring Plus/Premium/Platinum Limited (2017-2019) $5,000 $3,750 $2,500 $1,250
FORD
Escape PHEV (2023) $5,000 $3,750 $2,500 $1,250
Escape PHEV SE/SEL/Titanium (2020-2022) $5,000 $3,750 $2,500 $1,250
Focus Electric (2018) $5,000 $3,750 $2,500 $1,250
Fusion Energi SEL/Titanium (2020) $2,500 $1,875 $1,250 $625
Fusion Energi SEL/Titanium/Platinum (2018-2019) $2,500 $1,875 $1,250 $625
HONDA
Clarity Plug-in Hybrid Base/Touring (2018-2021) $5,000 $3,750 $2,500 $1,250
HYUNDAI
Santa Fe PHEV Preferred/Luxury (2022-2023) $5,000 $3,750 $2,500 $1,250
Tucson PHEV Luxury/Ultimate
(2022-2023)
$5,000 $3,750 $2,500 $1,250
Ioniq Plug-In Hybrid Essential/ Preferred/Ultimate (2021-2022) $2,500 $1,875 $1,250 $625
Ioniq Plug-In Hybrid Preferred/Ultimate (2020) $2,500 $1,875 $1,250 $625
Ioniq Electric Plus Preferred/Ultimate (2019) $2,500 $1,875 $1,250 $625
Ioniq Electric Plus SE/Limited (2018) $2,500 $1,875 $1,250 $625
Sonata PHEV Ultimate (2017-2019) $2,500 $1,875 $1,250 $625
JEEP
Wrangler 4xe Unlimited Sahara/ Unlimited Rubicon/Willys (2022-2023) $2,500 $1,875 $1,250 $625
Wrangler 4xe Unlimited Sahara/ Unlimited Sahara High Altitude/ Unlimited Rubicon/ (2021) $2,500 $1,875 $1,250 $625
KIA
Niro PHEV EX (2023) $5,000 $3,750 $2,500 $1,250
Niro PHEV EX/EX Premium/SX Touring (2021-2022) $2,500 $1,875 $1,250 $625
Niro PHEV EX Premium/SX Touring (2019-2020) $2,500 $1,875 $1,250 $625
Optima PHEV EX/EX Premium
(2017-2020)
$2,500 $1,875 $1,250 $625
Sorento PHEV EX/EX+/SX
(2022-2023)
$5,000 $3,750 $2,500 $1,250
Sportage PHEV EX Premium/SX (2023) $5,000 $3,750 $2,500 $1,250
LEXUS
NX 450h+ (2022-2024) $5,000 $3,750 $2,500 $1,250
LINCOLN
Corsair Grand Touring (2021-2023) $2,500 $1,875 $1,250 $625
MINI
Countryman ALL4 (2018-2023) $2,500 $1,875 $1,250 $625
MAZDA
CX-90 GS/GS-L/GT (2024) $2,500 $1,875 $1,250 $625
MITSUBISHI
Outlander PHEV ES/LE/SEL/GT/
GT Premium (2023)
$5,000 $3,750 $2,500 $1,250
Outlander PHEV SE/LE/Black Edition/ GT (2022) $2,500 $1,875 $1,250 $625
Outlander PHEV SE/LE/SEL/GT (2020-2021) $2,500 $1,875 $1,250 $625
Outlander PHEV SE-Base/SE Limited Edition/SE Touring/GT (2018-2019) $2,500 $1,875 $1,250 $625
SUBARU
Crosstrek Plug-In Hybrid Limited (2020-2023) $2,500 $1,875 $1,250 $625
TOYOTA
Prius Prime SE/XSE/XSE Premium (2023) $5,000 $3,750 $2,500 $1,250
Prius Prime Base/Technology (2022) $2,500 $1,875 $1,250 $625
Prius Prime Base/Upgrade (2021) $2,500 $1,875 $1,250 $625
Prius Prime Base/Upgrade/
Technology (2018-2020)
$2,500 $1,875 $1,250 $625
RAV4 Prime SE/XSE/XSE Technology (2023) $5,000 $3,750 $2,500 $1,250
RAV4 Prime SE/XSE (2021-2022) $5,000 $3,750 $2,500 $1,250
VOLVO
V60 Recharge (2022-2023) $5,000 $3,750 $2,500 $1,250
Last updated May 11, 2023.

FAQ

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.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Kia built an electric van for wheelchair users: Check out the new PV5 WAV

Published

on

By

Kia built an electric van for wheelchair users: Check out the new PV5 WAV

Kia’s first electric van is proving to be even more functional. The new PV5 WAV is specifically designed to be affordable, accessible, and wheelchair-friendly. Meet the new Kia PV5 WAV.

Meet the Kia PV5 WAV electric van

The PV5 is a fully electric midsize van. It’s the first of many from Kia’s new Platform Beyond Vehicle (PBV) business.

Kia promised its PBVs would go “Beyond Mobility,” and the company is proving it. On Tuesday, Kia unveiled the new PV5 WAV, calling it “a new era for wheelchair accessible electric vehicles.”

The PV5 is the perfect electric van for the task. Based on its new E-GMP.S EV platform, it has a flat floor design and extended wheelbase, unlocking more interior space.

Advertisement – scroll for more content

Kia designed the electric van not only for wheelchair users but also for their families, caregivers, and drivers. The PV5 WAV features a custom side-entry system to make it easier to get in and out of. An adjustable third-row seat enables users to assist from the side.

It will also feature a specially developed wheelchair belt fastener and entry ramp that can handle up to 661 lbs (300 kg).

According to Kia, the PV5 will include all necessary equipment for individuals with disabilities, based on the AAOS open software platform.

Kia-PV5-WAV-EV-van
Kia PV5 WAV electric van interior (Source: Kia)

The new electric van variant will be built alongside other PV5 models at Kia’s Hwaseong EVO Plant in Korea. Kia opened PV5 Passenger pre-orders (shown below) in the UK on May 1, starting at £32,995, or about $44,000. It will launch in Europe and Korea later this year, followed by other global markets in 2026.

Kia’s Passenger electric van is offered with two battery options: 51.5 kWh or 71.2 kWh, good for up to 179 miles or 249 miles of WLTP driving range.

After partnering with Motability Operations in February, Kia said, “users receiving a disability allowance can choose an affordable and accessible vehicle.”

The PV5 WAV will initially launch in the UK, but Kia plans to expand sales to other global regions. A larger PV7 van will arrive in 2027, followed by the PV9 in 2029. Kia will continue launching new electric variants and use cases. By 2030, the company aims to sell 250,000 electric vans as it taps into a new market.

Last month, at the 2025 Seoul Mobility Show, Kia and LG Electronics unveiled two new “Speilraum” PV5 electric van concepts for camping and other fun uses. What’s next?

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

GOP proposes sending US EV jobs to China, giving money to elites instead

Published

on

By

GOP proposes sending US EV jobs to China, giving money to elites instead

US republicans have unveiled their new tax proposal, which kills a slew of tax credits to help working families become more energy efficient, improve US air quality, and boost US manufacturing. The republican proposal instead channels that money to wealthy elites, increasing the deficit by trillions of dollars along the way.

Republicans in Congress released their 389-page proposal today and, as expected, it includes several provisions to eliminate popular clean energy credits which were driving a boost in American manufacturing.

The credits were largely established under President Biden as part of the Inflation Reduction Act, which raised hundreds of billions of dollars through tax enforcement on wealthy individuals and corporations and channeled that into energy efficiency credits for American families.

We’ve covered how families could save thousands of dollars on upgrades to lower their energy costs through these credits.

Advertisement – scroll for more content

But these credits aren’t just money-saving for Americans, they also work to boost American manufacturing.

Due to various provisions in the bill, particularly around the $7,500 EV tax credit which was limited to cars that undergo final assembly in North America. While loopholes exist, nevertheless the bill resulted in a massive expansion of American manufacturing, driving hundreds of billions of dollars of investment and creating hundreds of thousands of jobs.

But now, republicans in Congress are trying to roll much of that progress back.

Here’s a life of the bill’s various effects (via the BlueGreen Alliance):

  • Attaching restrictions to clean energy and manufacturing tax credits that would make them unusable in practical terms while also “sunsetting” those tax credits early, a move that research suggests will increase costs for American families; 
  • Repealing the Clean Vehicle Tax Credits; 
  • Repealing the Clean Hydrogen Tax Credit; 
  • Clawing back unspent funds for air quality monitoring in schools, clean manufacturing, state and community energy programs, and electric grid upgrades; 
  • Defunding and delaying the Methane Emissions Reduction Program (MERP), which reduces pollution and protects the health of workers and communities; 
  • Clawing back all unspent Inflation Reduction Act funds, including many provisions that would have lowered energy bills, created jobs, and reduced pollution; and 
  • Attacks on many additional Inflation Reduction Act programs and initiatives.   

You can perhaps see a pattern in these effects: they’re primarily targeted towards increasing costs for regular American families who were taking advantage of these tax credits, and towards programs that would keep you and your children healthier.

Previous analyses show how repealing these tax credits would lead to increased electricity prices for all Americans.

It should not be any surprise to anyone that has been paying attention that republicans want to poison you and raise your costs, but some people apparently still need more examples, so here we are.

In particular, the new tax proposal eliminates the US EV tax credit which had driven so much of that investment due to its domestic manufacturing provision (though there are some small carveouts). Not only does that inflate the cost of the best vehicles available today for Americans, it also takes away one of the incentives that was driving investment in US manufacturing.

We’ve warned before that a bill like this would just send more EV jobs to China, a country where nobody is “debating” over which direction the auto industry is going. Chinese automakers all know the industry is going electric, and they’re putting all of their effort into it.

This is quite a contrast with Western automakers which keep hemming and hawing, begging their governments to let them go bankrupt with anti-EV policy decisions that will only slow down their transition towards modernizing to the global EV status quo.

We’ve already seen the effects of other poor policy decisions on manufacturing, with several companies pausing or canceling plans to build manufacturing facilities in North America as a result of tariff chaos at the hands of an ignoramus. Republican districts have been hit hardest, as they were where the majority of this investment had been going.

And we’ve seen it made clear that the republicans in government responsible for protecting clean air would rather poison you and raise your fuel costs, as long as it helps the oil industry which bribed them into their position.

But then, the cherry on top of today’s tax proposal is that its cuts of these credits don’t even have a greater budgetary purpose. Not only was the Inflation Reduction Act revenue-positive – which is to say, it raised more money than it spent, thus reducing the deficit – today’s republican tax bill is revenue-negative, which is to say, it will increase the deficit.

The republican proposal raises the debt ceiling by $4 trillion, and it makes use of virtually all of that headroom, as the Joint Committee on Taxation has estimated that it will add $3.7 trillion to US debt. This is largely due to the bill’s significant giveaways to wealthy elites, with the majority of tax cuts targeted at the wealthiest households.

So the government isn’t even getting any savings out of this bill, merely channeling more money from working families to the wealthy elites that the republican party has always tried to benefit (including in other ways than the clean energy credits, like by cutting health care for the poor).

If you have a republican representative, all it takes is 3 republican Congresspeople to oppose this job-killing bill and to stand up for the well-being of their constituents.

Solar industry analysts have identified four republican Congresspeople who might be swayed in this respect, with their contact info below (Find out more about how this will affect the solar tax credit in this article by Electrek’s Michelle Lewis)

But there are many others whose districts have received significant investment, with EV projects being particularly popular in states like Georgia, North Carolina, and others along the burgeoning US “battery belt”. An interactive tool, including the ability to sort by congressional district, is available here.

Otherwise, you can find your representative on Congress’ website, and then search for the contact form on your representative’s website to get in contact with them.

Of course, if you have a Democratic representative, it’s also worth letting them know that you oppose the tax bill, just in case a few of them decide to jump ranks and join the republicans in harming America. We certainly hope they don’t, but it could happen.


Among the proposed cuts is the rooftop solar credit. That means you could have only until the end of this year to install rooftop solar on your home, before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started now.

To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. – ad*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

The House draft budget kills the 30% residential solar tax credit

Published

on

By

The House draft budget kills the 30% residential solar tax credit

The House’s “One, Big, Beautiful Bill” (yes, it’s really called that) has set an accelerated expiration date of December 31, 2025, for the 30% residential solar tax credit – nearly a decade ahead of its originally planned end date.

Is this the end of the residential solar tax credit?

The point of this giant bill is to extend the expiring Trump-era tax cuts from the 2017 Tax Cuts and Jobs Act, which would cost around $4 trillion over the next decade.

The Republican-majority House Ways and Means Committee proposes terminating section 25D on page 221, which would kill residential solar tax credits at the end of this year, almost a decade ahead of its original end date of December 31, 2034.

(Utility-scale solar’s tax credits remain in place through 2028 before a phase-down to 80% in 2029, 60% in 2030, 40% in 2031, and zero in 2032. That’s earlier than what’s currently law.)

Advertisement – scroll for more content

The original plan included a gradual reduction in residential solar tax credits; this new compressed timeframe leaves no time for the solar industry to prepare. “If Congress eliminates the ITC without a reasonable phase-down, that’s obviously going to cause immediate disruption within the solar industry,” Aaron Nichols with Exact Solar told EnergySage. 

The tax credit is known as the Investment Tax Credit (ITC), and it provides homeowners with a tax credit of 30% of the full cost of their residential solar installation. It was part of the Biden administration’s flagship Inflation Reduction Act.

The House Ways and Means Committee will mark up and then vote on the bill today, and then it will be sent to the entire House of Representatives. It will then be sent to the Senate, which has until July 4 to amend, reject, or pass the bill. 

The bill also proposes that the EV and energy efficiency tax credits be killed.

Electrek’s Take

It’s not hyperbole to say that this would be one of the worst decisions the Republican Party would ever make for the US economy. Nothing about this makes America great.

That’s why Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA) released a statement yesterday saying that “at a time when billions of dollars are being invested in states that overwhelmingly voted for President Trump, this proposed legislation will effectively dismantle the most successful industrial onshoring effort in US history.”

And Charlie Hadlow, president and COO of EnergySage, told Electrek that “eliminating the 25D tax credit would be a step backward for American families and small businesses. President Trump has emphasized the need for more domestic energy sources, not fewer, and this credit plays a key role in expanding access to reliable, affordable, homegrown power.”

If this reckless proposal to kill the 30% residential solar tax credit passes, it’s going to raise homeowners’ energy bills, kill jobs, kneecap the solar industry, and hurt small businesses. It will be more of an uphill battle to create a more resilient grid as energy demand skyrockets. It’s going to be much more difficult to compete with China. It makes it harder to reduce emissions (not that Trump’s party cares about that).

Nothing about this budget proposal makes sense. And the thing that makes the least sense is that most of the pain will be felt in red states, where most of the solar industry’s growth is happening.

So, will some Republican lawmakers have the guts to stand up for their constituents? I guess we’ll find out.

Read more: Home solar prices just hit record lows – and storage is even cheaper


If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending