Canada’s iZEV program: How to qualify if you’re buying an EV.

Say hello to energy-savings and wallet-boosting in this era where energy efficiency and cost-savings are the new normal with Canada’s iZEV program. Ready for a shocking incentive? Buy an EV in Canada and join the Canadian government’s economic incentive program for Zero-Emission Vehicles.

Canada's iZEV program, also known as Zero-Emission Vehicles (iZEV,) is a Canadian government initiative designed to make environmentally friendly transportation more accessible to the public. Simply put, it’s a program that provides financial incentives to people who choose to buy or lease zero-emission vehicles. The goal is to encourage more Canadians to adopt clean transportation options, thus reducing greenhouse gas emissions. This initiative can make your cleaner transportation dream come true and save you some real money. So strap in, and let’s get into the details on how to qualify for these incentives.

The electrifying benefits of Canada's iZEV program.

The iZEV program offers financial rebates to consumers, promoting the switch to cleaner, emission-free driving. Owning an EV reduces your carbon footprint and includes some financial perks. Become an EV owner by taking advantage of the benefits offered by the iZEV program, like financial help from $2,500 up to $5,000 on eligible zero-emission vehicles sold in Canada. This incentive mirrors the nation’s push towards cleaner alternatives that could put traditional combustion engines behind us, exhausting old practices, as we call them.

In fact, according to Natural Resources Canada, the transportation sector accounts for 26% of Canada’s greenhouse gas emissions. Shifting to EVs can significantly reduce emissions and help turn the tide on climate change.

The economic perks of plugging in.

Shifting to an EV doesn’t just bring ecological benefits; it’s also an economic game-changer! Sometimes, affording a new vehicle can impact your economy, but the iZEV program cushions against that, making your EV purchase lighter on the pocket.

Lower fuel and maintenance costs: For starters, the cost of charging an EV is significantly lower than the cost of refuelling a traditional gasoline-powered vehicle. According to Ontario.ca, the average driver in Ontario can save between $1,500–$2,500 per year on fuel and maintenance by switching to EVs.

Maintenance costs for EVs are also typically lower compared to gasoline vehicles. This is because EVs have fewer moving parts, no exhaust systems, no oils to change, and braking systems that last longer due to regenerative braking practices. A Canadian Automobile Association (CAA) study found that EV owners could expect to save around 75% on maintenance over the vehicle’s lifespan compared to a conventional car.

Additionally, by switching to an EV, you also contribute to the local economy. The EV industry is adding numerous jobs and spurring innovation across Canada. According to Clean Energy Canada, a swift move to electric transport could help Canada gain as much as $22 billion in GDP by 2040. Now, that’s what we call a power drive towards a prosperous future!

Qualifying for Canada's iZEV program program.

Applying for the iZEV program is as easy as plugging in your EV to charge. Now, doesn’t that sound like a jolt of joy? Here’s a step-by-step guide to getting qualified.

1. Choose an eligible vehicle.

The government publishes an up-to-date list of eligible vehicles the buyer must choose from. The list is divided into two broad categories where incentives vary:

• Battery-electric, hydrogen fuel cell, and longer-range plug-in hybrid vehicles (greater than 50 km) can receive incentives of up to $5,000.
• Shorter-range plug-in hybrid electric vehicles (less than 50 km) can receive incentives up to $2,500.

The distinction in qualifying vehicles often revolves around the EV’s battery capacity, as models with larger, higher-capacity batteries typically qualify for higher incentives.

2. Navigate the price point.

Purchase price plays an important role in qualifying for the program.

• For vehicles with 6 seats or fewer, the base model MSRP (Manufacturer’s Suggested Retail Price) must be less than $45,000. Higher-end versions (trims) of these vehicles, up to a value of $55,000, can also be eligible.
• For vehicles with 7 seats or more, the base model MSRP must be less than $55,000. Again, these vehicles’ eligible higher-end versions (trims) can go up to $60,000.

3. Keeping it in Canada.

The vehicle must be purchased or leased in Canada. Both new and used cars are eligible as long as they are purchased from an eligible point of sale and are included on the Government of Canada’s list of eligible vehicles.

4. No need to handle the paperwork.

You don’t have to apply for the incentive, as it is applied by the dealership at the point of sale or lease. Don’t forget to ask your salesperson about this incentive during your discussions! As for the documentation, rest assured that your dealership handles all the heavy lifting and manages the entire process for you.

How do I get the incentive?

When purchasing or leasing an eligible zero-emission vehicle (ZEV) in Canada, the iZEV incentive is applied directly at the dealership’s point of sale or lease. It will clearly be indicated as a deduction on the bill of sale or lease agreement. Essentially, the dealer subtracts the incentive amount from the total price of the vehicle on or after the vehicle’s eligibility date. This makes the process transparent and seamless, with no extra forms to fill out. Make sure to ask your salesperson about this incentive to ensure it is applied to the sale. Further, ensure your chosen ZEV falls within the eligible vehicle list and that you purchase or lease it from a registered dealer to benefit from the federal iZEV incentive.

Don’t let the current opportunity pass.

The future is electric, and Canada’s iZEV program wants to help you join it. While iZEV is more than a symbolic gesture toward a cleaner environment, it sure feels good to do your bit and brake away from old habits.

As we continue our journey towards a cleaner and more sustainable Canada, we must remember that the earth is not simply ours; it’s a loan from the next generation. Your decision today shapes the transportation landscape of tomorrow. Choose to buy cleaner and drive cleaner!