Questions and answers for consumers

Question & Answer
What are the timelines for taking advantage of the iZEV Program?

Funding is given on a first-come, first-served basis for eligible vehicles purchased or leased as of the vehicle's eligibility date listed on Transport Canada's website.

The iZEV Program is currently scheduled to end on March 31, 2022. However, the Program may end sooner if available iZEV funding is fully exhausted prior to this date. Please visit Incentives for Zero-Emission Vehicles (iZEV) Program Statistics to find the latest data on remaining available funds within the iZEV Program.

Who can submit a claim for reimbursement?

Consumers can't apply for the incentive on their own.

Only dealerships can submit claims for reimbursement. Consumers should receive the incentive directly from the dealership at the point-of-sale, after taxes and fees are applied to the vehicle.

Do you need to be a Canadian citizen to receive an incentive?

No, but you must be a Canadian resident, which means that you need to have a home address in Canada.

Can businesses participate in the iZEV Program?

Yes, businesses are eligible for up to 10 incentives every calendar year. That being said, businesses that apply for the federal incentive can't also use the tax write-off for businesses for the purchase of zero-emission vehicles.

Can not-for-profit organizations participate in the iZEV Program?

Yes, not-for-profit organizations can participate in the iZEV Program as long as they are registered. They can apply for up to 10 incentives in any calendar year.

Can provincial, territorial and municipal governments operating fleets participate in the iZEV Program?

Yes, provincial, territorial, and municipal governments with fleets are eligible. They can apply for up to 10 incentives in any calendar year. This limit is applied by level of government, rather than by organization.

As a result, each provincial or territorial fleet can use no more than 10 incentives per calendar year.

How does it work with other provincial/territorial incentive programs?

The federal incentive will be applied to eligible zero-emission vehicles in addition to any provincial/territorial incentive offered.

If I buy or lease an eligible vehicle on or after the respective eligibility date, how do I get my incentive payment?

Consumers should receive the incentive directly from the dealership at the pointof-sale, after taxes and fees are applied to the vehicle. This allows consumers to benefit immediately when buying or leasing an eligible ZEV.

Consumers can't apply for the incentive on their own. Only dealerships can submit claims for reimbursement for an incentive provided to consumers at the point-of-sale.

Is there a limit on how many vehicles I can purchase or lease under the iZEV Program?

Yes, there are different limits for different types of consumers:

  • Individuals can apply for one incentive per calendar year;
  • Businesses can apply for up to 10 incentives per year, but if they use the federal incentive, they can't use the tax write-off for the same vehicles; and
  • Provincial, territorial and municipal governments with fleets can apply for up to 10 incentives in any calendar year. This limit is applied by level of government, rather than by organization. This means that each provincial, territorial or municipal fleet can use no more than 10 incentives per calendar year.
Do vehicle add-on accessories, options, packages or colours affect eligibility under the iZEV Program?

No, as long as the vehicle make, model, and trim are included on the iZEV Program's List of Eligible Vehicles, then the purchase or lease of these vehicles qualifies for the incentive. Other fees such as vehicle colour, add-on accessories (e.g., a roof rack), options, and packages that push the actual purchase price over the iZEV Program's vehicle price limits do not affect eligibility.

Can additional vehicles be added to the list of eligible vehicles?

Yes. Automakers can apply to Transport Canada to have specific makes, models and trims added to the List of Eligible Vehicles. We will then review the application to make sure the vehicle is eligible for the iZEV Program before adding it to the list.

I would like to benefit from the tax write-off from CRA.  Can I give back the incentive I received under the iZEV Program?

No. Giving back the incentive is not available for the federal iZEV Program. It is the consumer's responsibility to determine which program meets their needs before accepting the incentive at the time of purchase.

Do I need to finance the purchase of an eligible ZEV in order to receive the incentive?

No. Both cash purchases and financed purchases (as well as leases of at least 12 months) are eligible for iZEV Program incentives.

Are electric bicycles (e-bikes), scooters and motorcycles eligible under the iZEV Program?

No, 2-wheeled vehicles, like motorcycles or e-bikes, are not eligible.

The iZEV Program was created to reduce emissions from cars and light trucks, which produce about 50% of transportation-related greenhouse gas emissions in Canada. With this goal in mind, the Program requires vehicles to have at least four functioning wheels and be highway capable, intended for use on public streets, roads, and highways, and meet all Canada Motor Vehicle Safety Standards in order to receive an incentive.

Are leased vehicles eligible for an incentive?

Yes, the incentive can be applied to vehicles leased for 12 months or more, but will be adjusted for leases shorter than 48 months. For example, a 48-month lease is eligible for the full incentive, while a vehicle with a 24-month lease will be eligible for half the incentive.

More information on incentives for specific vehicles under standard lease terms

Full incentive amount

48-month lease

39-month lease

22-month lease

12-month lease

$5,000

$5,000

$4,063

$2,292

$1,250

$2,500

$2,500

$2,031

$1,146

$625

For lease terms not listed in the table, use this formula to find the appropriate incentive level. This percentage can be applied to the incentive for an eligible zero-emission vehicle:

(full incentive amount of the eligible ZEV ÷ 48) x (number of months of the lease)

Are pre-owned zero-emission vehicles (ZEVs) eligible?

No, only new ZEVs are eligible. New vehicles are ones that have not been plated before.

Are demonstrator vehicles eligible?

For the purposes of the iZEV Program, eligible ZEVs that are demonstrators are considered new vehicles and are eligible for the incentive as long as the odometer reading is less than 10,000 km.

Are vehicles purchased or leased outside of Canada eligible?

No. Only new vehicles purchased or leased in Canada from a licensed dealer are eligible.

Troubleshooting: What if I didn't get the incentive at the point-of-sale?

If you didn't receive the incentive on an eligible ZEV purchased or leased on or after the date listed on the eligibility vehicle list, please contact the dealership so they can provide you the incentive.

The dealership or automaker should provide the incentive after taxes and fees have been applied to the purchase or lease. You'll need to complete and sign the Consumer Consent Form and the Incentive Received Form.

Only a dealership can submit claims for reimbursement. You can't apply for reimbursement directly yourself.

Troubleshooting: The dealership did not apply the full incentive allowed. What should I do?

If you didn't receive the incentive on an eligible ZEV purchased or leased on or after the date listed on the eligibility vehicle list, please contact the dealership to receive the remaining eligible amount.

The dealership should provide the incentive at the-point-of-sale up to the maximum eligible amount as listed on the list of eligible vehicles, or as calculated using the following formula:

(full incentive amount of the eligible ZEV ÷ 48) x (number of months of the lease)

Are there any fees associated with the iZEV Program?

There are no fees associated with the iZEV Program. Dealerships can't charge additional fees under the iZEV Program. If they charge fees, Transport Canada can remove the dealership from the Program.

All fees and costs, like freight and delivery charges, should be similar to the fees and costs for vehicles sold outside of the Program.

I was charged fees to process my iZEV application. What should I do?

If a dealership wants to charge, or has charged fees for the iZEV Program, please email Transport Canada: iZEV-iVZE@tc.gc.ca.

Why are Tesla Model 3 Standard Range (model years 2021 and 2022), Model 3 Standard Range Plus (model year 2021) and Model 3 RWD (model year 2022) vehicles no longer eligible for iZEV Program incentives?

In the fall of 2021, Tesla announced a price increase to these models effective November 23, 2021 at 17:00 Pacific Standard Time that is higher than the iZEV Program's maximum allowed Manufacturer's Suggested Retail Price (MSRP) limits for vehicles with fewer than seven seats. As a result, these vehicle models are no longer eligible for iZEV Program incentives.

I ordered (for purchase or lease) a Tesla Model 3 Standard Range (model years 2021 and 2022), and/or Model 3 Standard Range Plus (model year 2021) and/or Model 3 RWD (model year 2022) prior to November 23, 2021 at 17:00 Pacific Standard Time. However, Tesla has advised me that my vehicle won't be delivered until after this date. Is my purchase or lease still eligible for the iZEV Program incentive when I take delivery?

This is subject to funding availability. All eligible consumers who ordered their above-noted Tesla vehicle(s) prior to November 23, 2021 at 17:00 Pacific Standard Time will still receive the iZEV Program incentive, even for vehicles delivered after this date. Transport Canada worked with Tesla on a process to validate iZEV Program incentive eligibility for vehicles ordered prior to this date. The same process will be applicable to any vehicle that becomes ineligible for iZEV Program incentives in the future due to a price increase.