The Government of Canada can help make the upfront cost of purchasing an EV more affordable. The Zero-Emission Vehicle program provides point-of-sale incentives for consumers who purchase or lease an eligible electric vehicle.
Incentives range from $2,500 for shorter range plug-in hybrids to $5,000 for all-electric and longer-range plug-in hybrid electric vehicles.
To be eligible for an incentive, consumers have to purchase or lease:
A new vehicle with six seats or fewer, where the base model Manufacturer’s
Suggested Retail Price (MSRP) is less than $45,000
A new vehicle with seven seats or greater, where the base model Manufacturer’s
Suggested Retail Price (MSRP) is less than $55,000
More information about the Zero-Emission Vehicle program can be found on the Government of Canada’s
website: Canada – Zero Emission Vehicles.
Businesses are also eligible for the federal EV incentive. However, businesses that take advantage of the federal incentive, will not be able to take advantage of the tax write-off for electric vehicles.
Businesses that take advantage of the federal EV incentives will be limited to a maximum of 10 incentives in any calendar year during the Program.
A 100% tax write-off is available for EVs, to support business adoption. Eligible EVs include:
A motor vehicle that is a plug-in hybrid with a battery capacity of at least 7 kWh
Vehicles that are fully electric or fully powered by hydrogen, including light-, medium- and
heavy-duty vehicles purchased by a business
This measure applies to eligible vehicles purchased and becoming available for use on or after March 19, 2019 and before January 1, 2024.
For more information on the tax write-off for these vehicles; businesses and self-employed individuals may contact the Canada Revenue Agency at 1-800-959-5525 or visit the Government of Canada’s website: Canada – Zero Emission Vehicles.