The Canadian government has proposed a CA$5,000 federal incentive for newly-purchased electric vehicles as part of its 2019 budget plan.
Engadget reports that select Canadian provinces such as Quebec and British Columbia already offer EV rebates but this is the first time a proposal has been made for a rebate to cover the entire country.
The incentive will cost the government CA$300 million ($224 million USD) over three years to slash CA$5,000 off electric and hydrogen fuel cell-powered vehicles. The incentive would only be available to new vehicles with starting prices below CA$45,000. That means no current Tesla models could benefit from the incentive as the entry-level Model 3 starts at CA$47,600 in Canada ($35,598 USD).
No love for Tesla
The Canadian government is also particularly keen to encourage taxi and bus operators to adopt electric and hydrogen vehicles. Consequently, the proposal also says that EVs would be “eligible for a full tax write-off in the year they are put in use.”
In addition, the government intends on providing National Resources Canada with CA$130 million over five years to establish a comprehensive charging station network across the country. Stations would be primarily located near workplaces, public parking lots, commercial and residential buildings, and a number of remote locations. The government says additional details about the incentive program will be announced soon.
Canada has set a target of selling 100 per cent zero-emission vehicles by the year 2040. On the way to that goal, it wants to hit a sales goal of 10 per cent by 2025 and 30 per cent by 2030.
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