In 2025, Canadian drivers switching to electric vehicles (EVs) can benefit from generous rebates that add up to $12,000. These savings stem from federal and provincial programs aimed at encouraging zero-emission vehicle adoption across the country.
Federal EV Rebate: iZEV Program
The federal Incentives for Zero-Emission Vehicles (iZEV) Program offers up to $5,000 for qualifying new EV purchases or leases. However, as of January 12, 2025, this program has been paused due to exhausted funding. Pre-approved applications submitted before that date will still be honored.
Provincial and Territorial EV Rebates in 2025
In addition to the federal incentive, several provinces and territories offer their own rebates:
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Quebec – Offers up to $7,000 for new EVs, which when combined with the federal program (if available), could total $12,000.
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British Columbia – Provides up to $4,000, depending on vehicle type and household income.
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Prince Edward Island – Offers up to $5,750 on new and used EVs, with additional incentives for retiring older vehicles.
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Nova Scotia – Provides up to $3,000 for new EVs, with extra support for lower-income households.
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New Brunswick – Offers up to $5,000 for new EVs and includes rebates for used models and charging stations.
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Newfoundland and Labrador – Offers up to $2,500 for eligible EV purchases.
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Yukon – Offers up to $5,000 for new EVs, along with support for charger installations.
Who is Eligible for the EV Rebates?
To qualify for these incentives, both the vehicle and the buyer must meet specific criteria:
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Vehicle Requirements – The EV must be a new zero-emission model priced under $55,000 for cars and under $60,000 for larger vehicles like SUVs.
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Buyer Requirements – Applicants must reside in Canada and use the vehicle for personal or commercial purposes.
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Lease Terms – Full rebates are generally offered on leases of 48 months. Shorter leases may qualify for partial incentives.
How to Claim Your EV Rebate
Claiming your EV rebate is typically handled by the dealership at the point of sale. Here’s how it works:
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Select a qualifying electric vehicle.
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Purchase or lease it from a dealership participating in the incentive program.
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The dealer will apply the rebate directly to your purchase or lease price.
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You may be asked to sign consent or eligibility confirmation forms.
Note: Federal rebates must be processed at the time of sale—they cannot be claimed after the transaction is complete.
FAQs
What is the maximum rebate available in 2025?
Depending on your province, you could receive up to $12,000 in total rebates when combining federal and provincial offers.
Is the federal iZEV program still active?
No, the program has been paused as of January 12, 2025. Only previously submitted and approved applications will be honored.
Can I receive a rebate for buying a used EV?
The federal rebate applies only to new vehicles. Some provinces do provide incentives for used electric vehicles.
How can I confirm if a vehicle is eligible?
Eligible vehicles must meet price and model criteria. Check with your dealership or the relevant provincial authority to ensure your vehicle qualifies.
Are Tesla vehicles still eligible for rebates?
As of March 2025, Tesla vehicles are no longer eligible for Canadian rebates due to policy and trade changes.
Click here to know more.
Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.