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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Tesla average transaction prices (ATPs) in March are estimated at $54,582, higher year-over-year by 3.5% and higher than in February, according to the latest monthly new-vehicle ATP report from Cox Automotive’s Kelley Blue Book.
Average transaction prices for the Tesla Model 3 and Model Y were higher month-over-month and year-over-year in March. Tesla’s sales in Q1 continued their long-term decline after peaking in Q1 2023. Estimates from Kelley Blue Book suggest Tesla’s sales in Q1 2025 were lower year-over-year by more than 8%. Its deliveries were also worse than expected.
New EV prices in March overall are initially estimated by Kelley Blue Book to be $59,205, higher year-over-year by 7.0%. New EV prices increased from the revised higher February ATP of $57,015.
The ATP for an EV last month was nearly 25% higher than the industry average of $47,462, widening the price gap between new EVs and gas-powered cars even more.
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But EVs are still seeing heftier incentives than the industry average. In March, the average EV incentive came in at 13.3% of the transaction price – down 1% from February’s revised 14.3% but still well above what gas cars are getting.
So, where are we heading? Higher prices, thanks to Trump’s tariffs. But what that will look like remains to be seen. Erin Keating, executive analyst at Cox Automotive, said, “All signs point to higher prices this summer, as existing ‘pre-tariff’ inventory is sold down to be eventually replaced with ‘tariffed’ inventory. How high prices rise for consumers is still very much to be determined, as each automaker will handle the price puzzle differently.”
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BYD just launched the first EVs based on its new Super e-platform with ultra-fast charging. The new Han L sedan and Tang L SUV can gain nearly 250 miles range in 5 minutes, and prices start at just $30,000.
Meet BYD’s new EVs with ultra-fast charging
During a launch event on April 9, BYD introduced the new EV models, claiming its engineers have “achieved the master realm of Chinese technology.”
The Han L and Tang L are the first EVs based on BYD’s 1000V Super e-platform. After unveiling the ultra-fast EV charging platform last month, BYD’s CEO, Wang Chuanfu, said to ease charging anxiety, “The ultimate solution is to make charging as quick as refueling a gasoline car.”
That solution is now here. BYD’s new Han L is available in three trims, starting at just 219,800 yuan ($30,000), lower than the pre-sale price of 270,000 yuan ($36,800).
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BYD’s new electric sedan is 5,050 mm long, 1,960 mm wide, and 1,505 mm tall, or about the size of a Tesla Model S (5,021 mm long, 1,987 mm wide, and 1,431 mm tall).
All variants are powered by an 83.2 kWh BYD Blade battery, providing up to 435 miles (701 km) of CLTC driving range. Based on BYD’s 1,000V architecture, the Han L comes with two charge guns with an up to 10C charge rate.
Nearly 250 miles in just 5 minutes?
With ultra-fast charging, the electric sedan can gain 400 km (248 miles) in just five minutes. In six minutes, it can recharge from 10% to 70%, and in just 20 minutes, it can fully recharge (0% to 100%) the battery.
Like all its new EV models, the Han L is equipped with BYD’s God’s Eye smart driving assist system. It features the mid-tier “B” version and DiPilot 300.
BYD Tang L electric SUV with ultra-fast charging (Source: BYD)
BYD’s new electric SUV, the Tang L, is also offered in three trims. It starts at 239,800 yuan ($32,700), also below the pre-sale price of 280,000 yuan ($38,200).
The Tang L is also based on BYD’s 1,000V architecture and ultra-fast charging platform. Powered by a 100.5 kWh battery, it has a CLTC range of up to 435 miles (701 km) and can gain 230 miles (370 km) in 5 minutes. It will take about 30 minutes to go from 0% to 100%.
BYD’s electric SUV is 5,040 mm long, 1996 mm wide, and 1,760 mm tall, or slightly bigger than the new Tesla Model Y Juniper in China (4,797 mm long, 1,920 mm wide, and 1,624 mm tall).
Like the Han L EV, the electric SUV has BYD’s God’s Eye B ADAS system with DiPilot 300. Both the Han L and Tang are available as PHEVs, starting at 209,800 yuan ($28,500) and 229,800 yuan ($31,300).
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The 90-day pause doesn’t eliminate the threat of tariffs — it just delays it. Investors are still pricing in risk, including inflation, discretionary pullbacks, hardware import costs and credit exposure.
Legacy payment networks such as Visa and Mastercard, both up 6%, continue to benefit from inflation and their structural ties to nominal GDP. These companies take a percentage of every transaction. That makes rising prices a tailwind.
“If prices are moving up for certain goods and you’re paying with a credit card, it’s actually good for the credit card companies,” said Dan Dolev, a fintech analyst at Mizuho.
Their pricing structure has historically made them resilient during inflationary periods, including recessions. The situation is less rosy for the new wave of consumer lending fintechs.
Affirm, which specializes in allowing consumers to buy now and pay later, could suffer if consumers pull back spending when the pause is lifted as a result of tariffs causing prices to rise. The San Francisco-based company could see its revenue less transaction costs margins — essentially what the company pockets after paying processing fees and customer incentives — drop more than 22% in that scenario, according to a Goldman Sachs estimate on Tuesday.
The adoption of buy now, pay later may rise as consumers hit credit limits, said SIG analyst James Friedman, but he added that the model remains untested in a downturn.
Toast, Block and Fiserv, which was up 6%, develop software used by restaurants and small businesses. Those companies could face rising hardware costs and softening demand from customers if the tariffs go through.
Meanwhile, cross-border payments — one of the most profitable segments for Visa, Mastercard and PayPal — remain under pressure as global travel slows and e-commerce flows adjust to the uncertainties of Trump’s tariffs.
Even remittance players such as Remitly and Western Union, both up 8%, could face longer-term pain if immigration pipelines slow or remittance corridors tighten under regulatory scrutiny. Similar to cross-border commerce, remittances depend on a steady flow of people and transactions, both of which remain fragile.