Canada Proposes $5,000 Federal Incentive For EVs

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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  • Six_Tymes

    Wait, they weren’t offering incentives until now?? what the

    • Toronado_II

      Only in some provinces. 8000$ in Québec.

  • Mr. EP9

    ” The incentive would only be available to new vehicles with starting prices below CA$45,000″

    That actually sounds like a very reasonable and sensible approach IMO.

    • woll3

      No it isnt, anyone who can afford a car above 20k is already well off enough and should receive no benefits.

  • EyalN

    they should give it to people that want to buy a $30000 electric cars, not $200000 cars

  • danno

    If electrics are such a big win, let the consumers decide to buy or not buy. I’m sure I don’t want taxpayers to fund this consumer choice.
    As well, this extra funding will all be borrowed money, as the Liberal Government is already running a significant deficit of $20 Billion a year. With the risk now of Canada losing the AAA credit rating.
    EVs perform rather poorly in our cold climate, with significant range reduction, and slow charging issues.
    Metrolinx (Greater Toronto Transit system) recently removed 18 charging stations in their lots due to under use. The systems cost $2000 a year to operate per charger, yet brought in $450 a year in revenue per charger.
    And Toronto is held out to be as progressive a city as they come in Canada.
    Given the SNC-Lavalin scandal, doubt any Liberal promises will come to light as the next election is in October.

    Just no.

    • woll3

      If electrics are such a big win, let the consumers decide to buy or not
      buy. I’m sure I don’t want taxpayers to fund this consumer choice.

      That will happen soon, and more importantly too soon to roll out any benefits this late, especially with the necessary Investment into charging networks, which is also a part of the reason why everything is taking “so long”. People tend to forget that Volume is cheap, but large Volumes also need preparation time, however the Floodgates will basically open overnight once Mainstream cars are out on purpose built platforms.

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