Are you willing to purchase a used or new electric vehicle in Ontario? You must check the Canadian Federal iZEV and provincial rebate programs available for car buyers.
Rebates/Incentives Available under iZEV
iZEV is the acronym for Incentives for Zero-Emission Vehicles Program. The federal government in Canada organized this program to provide a maximum rebate of $5,000 for Canadians who lease or buy any zero-emission vehicle. iZEV program will continue up to March 31 2025 or until the available funds are exhausted.
Lease and Percentage Incentives
Canada’s iZEV program offers POS or Point of Sale incentives to its eligible consumers who lease or purchase an eligible ZEV. However, purchased, or leased vehicles should meet the eligibility criteria mandated by the Federal iZEV for a minimum of 12 months after or on their eligibility date.
Types of Zero-Emission Vehicles and the Corresponding Rebates/Incentives
Zero-Emission Vehicles and Their Types
Zero-emission cars are special types of vehicles running on the roads of Ontario Canada. These cars do not produce any tailpipe emissions. Even though such cars come equipped with an internal combustion engine, they can move without using the engine as well. Common categories of zero-emission vehicles are-
Battery Electric Vehicles
Battery electric vehicles receive power to operate with the help of electric motors. Car owners need to charge such vehicles by connecting their car plugs to external electric outlets.
Hydrogen Fuel Cell Vehicles
Hydrogen fuel cell vehicles are fully electric vehicles, which use hydrogen fuel cells filled with hydrogen gas.
Plug-in Hybrid Electric Vehicles
Plug-in hybrid electric cars operate via both a charged battery and gas or any other fuel.
Incentives According to Zero-Emission Cars/Vehicles
Cars/vehicles operate via battery electric or hydrogen fuel cells and long-range plug-in hybrid vehicles may receive the maximum incentive worth $5,000. In contrast, short-range plug-in hybrid electric cars may receive up to $2,500 as an incentive.
Requirements to Qualify a Car/Vehicle for the iZEV Program in Ontario
Once you collect information on the incentive amount and the type of vehicle/car, you must meet the following eligibility requirements-
- Categorize your vehicle as a hydrogen fuel cell, battery electric, or plug-in hybrid electric vehicle
- Must lease or buy the car for a minimum of 12 months after or on its eligibility date
- Must contain an MSRP of up to $55,000 for any passenger and $65,000 with exceeding price trims
- Must possess the highest MSRP of $60,000 for a pickup truck, station wagon, sport utility vehicle, van, minivan, or special purpose car or $70,000 for high-price trims
How Car Buyers Can Receive the Incentives
The incentives are applicable right at the car dealership’s point of sale once the involved dealers confirm your application or eligibility. On the other hand, you must fill out a Consumer Consent Form to prove your eligibility for the incentive. After the dealer confirms your eligibility, you must complete the appropriate Incentive Received Form. Now, you will get the incentive directly on your lease agreement or bill of sale of your eligible ZEVs or zero-emission vehicles.