Federal government plans to expand national electric vehicle rebate program


With new electric SUVs and pickups hitting the market next year, the Liberal government may consider making more expensive EVs eligible for federal rebates

The federal government’s electric vehicle (EV) rebate program envisions a major overhaul that would make more expensive electric SUVs and pickup trucks eligible for a rebate.

The news was first reported by The Canadian Press, after receiving a written statement from the office of Transport Minister Omar Alghabra.

“The vast majority of vehicles purchased today are SUVs and pickup trucks, and while options (zero emission vehicles) become available for these segments, many of them will be billed outside of the current iZEV program,” reads -on in the press release. CP.

An e-mail statement provided to Autonomy Electric Canada from the Alghabra office stated that “demand for VZE in Canada remains strong, and our government is encouraged that we are on track to achieve a high level of VZE sales in 2021, despite all the downward pressures caused by the pandemic and supply chain risks. ”

Transport Canada announced in June that it was considering additional mandatory measures that would help accelerate sales of ZEVs in Canada and improve long-term supply. This was reiterated in the Speech from the Throne last month. The government recently announced the launch of a consultation process that will examine “how we should go about meeting the commitment,” the Alghabra office said.

Discount program of the day

Under the current zero-emission vehicle (iVZE) ​​incentive program, only vehicles with a base price of less than $ 45,000 (or models under $ 55,000 with seven or more seats) can qualify. up to $ 5,000 off the purchase price of a new electric vehicle, through the federal rebate program.

This means that many of the electric vehicles coming to Canada next year, like the Volvo C40 Recharge SUV crossover and the Ford F-150 Lightning electric pickup, with higher prices of $ 72,600 and $ 58,000, respectively, will not benefit from federal discounts. Recently, the Tesla Model 3 (the years 2021 and 2022) became ineligible for the iZEV program after a price increase, despite being the best-selling electric vehicle in the country year over year.

Alghabra says the government’s iVZE program needs to be “revised to better align” with the types of vehicles Canadians want to buy, which increasingly are electric vehicles and especially those of the widest variety. Zero-emission passenger vehicles make up the majority of new electric vehicle registrations nationwide. So far, there are only four SUV models available in Canada.

Liberal election promises

First launched in 2019, the iVZE program has successfully offered more than 100,000 Canadians incentives to purchase a zero-emission vehicle. The government initially allocated $ 300 million to the iZEV program and subsequently supplemented it with additional funding of $ 287 million last year.

Transport Canada estimates that those already participating in the program reduce up to 352,000 tonnes of greenhouse gas emissions per year.

Along with increasing sales targets for 100% zero-emission new cars and pickup trucks through 2035, the Liberals pledged in this fall’s federal election campaign to add $ 1.5 billion to $ 1.5 billion. more dollars to the iVZE rebate program over the next four years.

“Transportation is the second largest source of greenhouse gas emissions in Canada and the iVZE program is one way to reduce emissions on the road. By making zero-emission vehicles more affordable and putting more on the road, we are helping to reduce pollution in our cities and towns, while protecting the planet for future generations, ”the Alghabra office statement read.

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