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 $5,000CAD.
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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Elon Musk isn’t happy about Trump passing the Big Beautiful Bill and killing off the $7,500 EV tax credit – but there’s a lot more bad news for Tesla baked into the BBB. We’ve got all that and more on today’s budget-busting episode of Quick Charge!
We also present ongoing coverage of the 2025 Electrek Formula Sun Grand Prix and dive into some two wheeled reports on the new electric Honda Ruckus e:Zoomer, the latest BMW electric two-wheeler, and more!
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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Got news? Let us know! Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show.
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Solar and wind accounted for almost 96% of new US electrical generating capacity added in the first third of 2025. In April, solar provided 87% of new capacity, making it the 20th consecutive month solar has taken the lead, according to data belatedly posted on July 1 by the Federal Energy Regulatory Commission (FERC) and reviewed by the SUN DAY Campaign.
Solar’s new generating capacity in April 2025 and YTD
In its latest monthly “Energy Infrastructure Update” report (with data through April 30, 2025), FERC says 50 “units” of solar totaling 2,284 megawatts (MW) were placed into service in April, accounting for 86.7% of all new generating capacity added during the month.
In addition, the 9,451 MW of solar added during the first four months of 2025 was 77.7% of the new generation placed into service.
Solar has now been the largest source of new generating capacity added each month for 20 consecutive months, from September 2023 to April 2025.
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Solar + wind were >95% of new capacity in 1st third of 2025
Between January and April 2025, new wind provided 2,183 MW of capacity additions, accounting for 18.0% of new additions in the first third.
In the same period, the combination of solar and wind was 95.7% of new capacity while natural gas (511 MW) provided just 4.2%; the remaining 0.1% came from oil (11 MW).
Solar + wind are >22% of US utility-scale generating capacity
The installed capacities of solar (11.0%) and wind (11.8%) are now each more than a tenth of the US total. Together, they make up almost one-fourth (22.8%) of the US’s total available installed utility-scale generating capacity.
Moreover, at least 25-30% of US solar capacity is in small-scale (e.g., rooftop) systems that are not reflected in FERC’s data. Including that additional solar capacity would bring the share provided by solar + wind to more than a quarter of the US total.
With the inclusion of hydropower (7.7%), biomass (1.1%), and geothermal (0.3%), renewables currently claim a 31.8% share of total US utility-scale generating capacity. If small-scale solar capacity is included, renewables are now about one-third of total US generating capacity.
Solar is on track to become No. 2 source of US generating capacity
FERC reports that net “high probability” additions of solar between May 2025 and April 2028 total 90,158 MW – an amount almost four times the forecast net “high probability” additions for wind (22,793 MW), the second-fastest growing resource. Notably, both three-year projections are higher than those provided just a month earlier.
FERC also foresees net growth for hydropower (596 MW) and geothermal (92 MW) but a decrease of 123 MW in biomass capacity.
Taken together, the net new “high probability” capacity additions by all renewable energy sources over the next three years – i.e., the bulk of the Trump administration’s remaining time in office – would total 113,516 MW.
FERC doesn’t include any nuclear capacity in its three-year forecast, while coal and oil are projected to contract by 24,373 MW and 1,915 MW, respectively. Natural gas capacity would expand by 5,730 MW.
Thus, adjusting for the different capacity factors of gas (59.7%), wind (34.3%), and utility-scale solar (23.4%), electricity generated by the projected new solar capacity to be added in the coming three years should be at least six times greater than that produced by the new natural gas capacity, while the electrical output by new wind capacity would be more than double that by gas.
If FERC’s current “high probability” additions materialize, by May 1, 2028, solar will account for one-sixth (16.6%) of US installed utility-scale generating capacity. Wind would provide an additional one-eighth (12.6%) of the total. That would make each greater than coal (12.2%) and substantially more than nuclear power or hydropower (7.3% and 7.2%, respectively).
In fact, assuming current growth rates continue, the installed capacity of utility-scale solar is likely to surpass that of either coal or wind within two years, placing solar in second place for installed generating capacity, behind only natural gas.
Renewables + small-scale solar may overtake natural gas within 3 years
The mix of all utility-scale (ie, >1 MW) renewables is now adding about two percentage points each year to its share of generating capacity. At that pace, by May 1, 2028, renewables would account for 37.7% of total available installed utility-scale generating capacity – rapidly approaching that of natural gas (40.1%). Solar and wind would constitute more than three-quarters of installed renewable energy capacity. If those trend lines continue, utility-scale renewable energy capacity should surpass that of natural gas in 2029 or sooner.
However, as noted, FERC’s data do not account for the capacity of small-scale solar systems. If that’s factored in, within three years, total US solar capacity could exceed 300 GW. In turn, the mix of all renewables would then be about 40% of total installed capacity while the share of natural gas would drop to about 38%.
Moreover, FERC reports that there may actually be as much as 224,426 MW of net new solar additions in the current three-year pipeline in addition to 69,530 MW of new wind, 9,072 MW of new hydropower, 202 MW of new geothermal, and 39 MW of new biomass. By contrast, net new natural gas capacity potentially in the three-year pipeline totals just 26,818 MW. Consequently, renewables’ share could be even greater by mid-spring 2028.
“The Trump Administration’s ‘Big, Beautiful Bill’ … poses a clear threat to solar and wind in the years to come,” noted the SUN DAY Campaign’s executive director, Ken Bossong. “Nonetheless, FERC’s latest data and forecasts suggest cleaner and lower-cost renewable energy sources may still dominate and surpass nuclear power, coal, and natural gas.”
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Tesla has been forced to reimburse a customer’s Full Self-Driving package after an arbitrator determined that the automaker failed to deliver it.
Tesla has been promising its car owners that every vehicle it has built since 2016 has all the hardware capable of unsupervised self-driving.
The automaker has been selling a “Full Self-Driving” (FSD) package that is supposed to deliver this unsupervised self-driving capability through over-the-air software updates.
Almost a decade later, Tesla has yet to deliver on its promise, and its claim that the cars’ hardware is capable of self-driving has been proven wrong. Tesla had to update all cars with HW2 and 2.5 computers to HW3 computers.
Tesla is now attempting to deliver its promise of unsupervised self-driving on HW4 cars, which have been in production since 2023-2024, depending on the model. However, there are still significant doubts about this being possible, as the best available data indicate that Tesla only achieves about 500 miles between critical disengagements with the latest software on the hardware.
On the other hand, many customers are losing faith in Tesla’s ability to deliver on its promise and manage this computer retrofit situation. Some of them have been seeking to be reimbursed for their purchase of the Full Self-Driving package, which Tesla sold from $8,000 to $15,000.
A Tesla owner in Washington managed to get the automaker to reimburse the FSD package, but it wasn’t easy.
The 2021 Model Y was Marc Dobin and his wife’s third Tesla. Due to his wife’s declining mobility, Dobin was intrigued about the FSD package as a potential way to give her more independence. He wrote in a blog post:
But FSD was more than hype for us. The promise of a car that could drive my wife around gave us hope that she’d maintain independence as her motor skills declined. We paid an extra $10,000 for FSD.
Tesla’s FSD quickly disillusioned Dobin. First, he couldn’t even enable it due to Tesla restricting the Beta access through a “safety score” system, something he pointed out was never mentioned in the contract.
Furthermore, the feature required the supervision of a driver at all times, which was not what Tesla sold to customers.
Tesla doesn’t make it easy for customers in the US to seek a refund or to sue Tesla as it forces buyers to go through arbitration through its sales contract.
That didn’t deter Dobin, who happens to be a lawyer with years of experience in arbitration. It took almost a year, but Tesla and Dobin eventually found themselves in arbitration, and it didn’t go well for the automaker:
Almost a year after filing, the evidentiary hearing was held via Zoom. Tesla produced one witness: a Field Technical Specialist who admitted he hadn’t checked what equipment shipped with our car, hadn’t reviewed our driving logs, and didn’t know details about the FSD system installed on our car, if any. He hadn’t spoken to any sales rep we dealt with or reviewed the contract’s integration clause.
There were both a Tesla lawyer and an outside counsel representing Tesla at the hearing, but the witness was not equipped to answer questions.
Dobin wrote:
He was a service technician, not a lawyer or salesperson. But that’s who Tesla brought to the hearing. At the end, I genuinely felt bad for him because Tesla set him up to be a human punching bag—someone unprepared to answer key questions, forced to defend a system he clearly didn’t understand. While I was examining him, a Tesla in-house lawyer sat silently, while the company’s outside counsel tried to soften the blows of the witness’ testimony.
He focused on Tesla’s lack of disclosure regarding the safety score and the fact that the system does not meet the promises made to customers.
The arbitrator sided with Dobin and wrote:
The evidence is persuasive that the feature was not functional, operational, or otherwise available.”
Tesla was forced to reimburse the FSD package $10,000 plus taxes, and pay for the almost $8,000 in arbitration fees.
Since Tesla forces arbitration through its contracts, it is required to cover the cost.
Electrek’s Take
This is interesting. Tesla assigned two lawyers to this case in an attempt to avoid reimbursing $10,000, knowing it would have to cover the expensive arbitration fees – most likely losing tens of thousands of dollars in the process.
It makes no sense to me. Tesla should have a standing offer to reimburse FSD for anyone who requests it until it can actually deliver on its promise of unsupervised self-driving.
That’s the right thing to do, and the fact that Tesla would waste money trying to fight customers requesting a refund is really telling.
Tesla is simply not ready to do the right thing here, and it doesn’t bode well for the computer retrofits and all the other liabilities around Tesla FSD.
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