Canada’s Electric Vehicle Rebate Just Got Bigger: Canada’s electric vehicle rebate just got bigger in 2025, giving Canadian drivers even more reason to switch to clean, green transportation. Thanks to expanded federal and provincial programs, some EV buyers could save up to $12,000 when purchasing a qualifying electric vehicle this year. As climate action accelerates and EV adoption rises, these incentives make sustainable choices more affordable and attractive than ever.
But understanding who qualifies, how the rebates work, and what vehicles are eligible can be confusing. In this article, we break it all down clearly and simply. Whether you’re a first-time EV buyer or a seasoned enthusiast, here’s everything you need to know about Canada’s electric vehicle rebates in 2025.
Canada’s Electric Vehicle Rebate Just Got Bigger
| Feature | Details |
|---|---|
| Federal Rebate (iZEV) | Up to $5,000 (paused as of Jan 2025) |
| Top Provincial Rebate (Quebec) | Up to $7,000 |
| Total Possible Savings | Up to $12,000 (combined federal and provincial) |
| Eligible Vehicle Types | Battery Electric Vehicles (BEVs), Plug-in Hybrids (PHEVs), Hydrogen Fuel Cell Vehicles |
| Rebate Availability | Varies by province; federal funds currently exhausted |
| Where to Apply | At dealership (rebate applied at point of sale) |
| Resources | tc.canada.ca, plugndrive.ca |
Canada’s electric vehicle rebates in 2025 are helping to make sustainable driving more accessible than ever, especially in provinces with robust local programs. While the federal iZEV rebate is currently paused, provincial rebates of up to $7,000 remain in effect, offering significant savings for smart shoppers.
By understanding how these programs work and which vehicles qualify, Canadians can make confident, eco-conscious buying decisions that benefit both their budget and the planet.
Understanding the EV Rebate Landscape in 2025
The EV rebate system in Canada is made up of federal and provincial programs designed to encourage Canadians to make the switch from gas-powered cars to more sustainable electric vehicles. These incentives help reduce the upfront cost, which is one of the main barriers for most buyers.
While the federal government’s iZEV program provided up to $5,000 in rebates, it has been paused as of January 2025 due to funding being fully allocated. However, provinces like Quebec, British Columbia, Nova Scotia, and Prince Edward Island continue to offer generous rebates, often stackable with other incentives.
Provincial Rebate Programs in Detail
Let’s take a closer look at the major provinces offering rebates in 2025:
Quebec
- Rebate: Up to $7,000
- Applies to new BEVs, PHEVs, and long-range hybrids
- Administered by the Roulez Vert program
- More info
British Columbia
- Rebate: Up to $4,000
- Applies to new electric and hydrogen vehicles
- Additional rebate of up to $2,000 available through the SCRAP-IT program for older trade-ins
- More info
Nova Scotia
- Rebate: Up to $5,000
- Applies to new and used EVs
- Income-based additional rebates available
- More info
Prince Edward Island
- Rebate: Up to $5,750
- Applies to both new and used EVs and charging equipment
- Bonus incentives for low-income households
- More info
Other Provinces
- New Brunswick: Up to $5,000
- Yukon: Up to $5,000
- Manitoba, Alberta, Saskatchewan, Ontario: No active provincial rebates as of May 2025
Which EVs Qualify for Rebates?
Most rebates apply to affordable, mass-market EVs, not luxury models. Here are some of the most popular eligible vehicles:
| Model | Federal (when available) | Top Provincial Rebate | Total Savings |
|---|---|---|---|
| Tesla Model 3 (RWD) | $0 (federal paused) | $7,000 (QC) | $7,000 |
| Hyundai Kona Electric | $0 | $4,000 (BC) | $4,000 |
| Chevrolet Bolt EUV | $0 | $7,000 (QC) | $7,000 |
| Nissan Leaf SV Plus | $0 | $4,000 (BC) | $4,000 |
| Ford Mustang Mach-E | $0 | $5,000 (NS) | $5,000 |
Check with your dealership to confirm the current eligibility and exact rebate amount based on your province and trim level.
Why Was the Federal Rebate Paused?
The iZEV (Incentives for Zero-Emission Vehicles) program, launched in 2019, helped more than 250,000 Canadians purchase cleaner vehicles. However, by January 2025, the budget was exhausted, and the federal government has not yet committed to new funding.
This pause has made provincial programs even more important, especially for buyers in provinces like Quebec and BC where rebates can still reach thousands of dollars.
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Guide to Claiming Your EV Rebate
- Choose an Eligible Vehicle:
- Research the vehicle list on your provincial website
- Compare eligible trims and price caps
- Visit an Approved Dealership: Rebates are applied at the point of sale, so make sure your dealership handles EV rebates
- Complete the Purchase:
- Dealer submits documents to the government agency
- Rebate is deducted from the total cost before taxes in most cases
- Get Your EV and Start Saving!: Lower fuel costs, reduced maintenance, and long-term environmental benefits
FAQs On Canada’s Electric Vehicle Rebate Just Got Bigger
Q1: Are used EVs eligible for rebates?
A: Yes, in some provinces like Nova Scotia and PEI, used electric vehicles are eligible for incentives. Check local rules.
Q2: What if I already ordered my EV in 2024?
A: If the purchase was completed before the iZEV pause, you might still qualify for the federal rebate. Confirm with your dealer.
Q3: Can I stack federal and provincial rebates?
A: Usually yes, but as of now, the federal rebate is paused. When active, stacking is allowed.
Q4: Are plug-in hybrids eligible?
A: Only longer-range PHEVs typically qualify, and rules vary by province.
Q5: Do businesses qualify for EV rebates?
A: Some programs offer fleet incentives. Check with your province or business tax advisor.
Beyond Rebates: Long-Term EV Savings
Switching to an EV isn’t just about rebates. Over time, electric vehicle owners enjoy:
- Up to 75% lower fuel costs
- Fewer mechanical issues (no oil changes, fewer parts)
- Reduced emissions for a cleaner planet
- Access to HOV lanes and free tolls in some regions
- Some provinces also offer charging station rebates to help reduce setup costs at home.
What to Watch for in Late 2025
The federal government is expected to review the iZEV budget later in the year. Here’s what to keep an eye on:
- Potential renewal or expansion of federal rebates
- Changes to eligible vehicle caps (currently price-limited to $55,000 for base models)
- New EV models entering the market with broader affordability
Advocacy groups are also pushing for rebates for low- to middle-income households, and more rural infrastructure support.
