- The federal Incentives for Zero-Emission Vehicles (iZEV) Program provides incentives of up to $5,000 for the purchase or lease of eligible ZEVs.
- Through Budget 2022, the iZEV Program has received an additional $1.7 billion to continue until March 2025, and to expand the types of vehicle models eligible under the Program to include larger vehicles.
- Since its launch, over 200,000 incentive claims have been submitted to TC. As of the third quarter of 2022, ZEV market share in Canada reached 9.5% of total new light-duty vehicle registrations.
SUPPLEMENTARY MESSAGES
- Zero-emission vehicles (ZEV) have the potential to significantly reduce Canada’s greenhouse emissions and support Canada’s transition to a low-carbon transportation system.
- The Government of Canada is introducing regulated sales targets that will ensure at least 20% of new light-duty vehicle sales will be ZEVs by 2026, at least 60% by 2030, and 100% by 2035.
- Draft regulations were released in Canada Gazette Part 1 in December 2022, which was followed by a 75-day comment period.
- Through Budget 2022, the iZEV Program has expanded the manufacturer’s suggested retail price caps to make more vehicles eligible for the purchase /lease incentive.
UPDATE
- In January 2023, Tesla reduced the price of its Model 3 RWD (i.e. its base trim), making this one trim once again eligible under the iZEV Program. We welcome any time ZEV models are made more affordable and are hopeful that this becomes a more widespread trend as competition for market share increases in the years ahead.
BACKGROUND
- Light-duty vehicle (LDV) emissions account for approximately 50% of Canada’s transportation-related greenhouse gas emissions, and 12% of the country’s total emissions.
- In April 2022, the iZEV Program’s manufacturer’s suggested retail price (MSRP) caps were increased to accommodate more vehicles. To be eligible:
- Base model passenger cars must have an MSRP under $55,000, with higher trims eligible up to a maximum of $65,000.
- Station wagons, pickup trucks, SUVs, vans, and special purpose vehicles must have a base model MSRP under $60,000, with higher trims eligibility up to a maximum of $70,000.
- Through Budget 2022, the Government of Canada is investing more than $2.6 billion in measures to support accelerating LDV ZEV adoption including $900 million to build ZEV charging infrastructure.
- On November 23, 2021, Tesla increased the price of its Model 3, making the vehicle no longer eligible under the iZEV Program. Transport Canada continued to provide incentives for vehicles ordered prior to, but delivered after this date.