Zero-emission vehicles

car


Zero-emission vehicles help fight climate change

Transportation is the second largest source of greenhouse gas (GHG) emissions in Canada. This accounts for a quarter of Canada's total GHG emissions and almost half of those emissions come from cars and light trucks. One way that we can reduce the amount of transportation-related GHG emissions is to get more zero-emission vehicles (ZEVs) on the road.

A ZEV is a vehicle that has the potential to produce no tailpipe emissions. They can still have a conventional internal combustion engine, but must also be able to operate without using it.

For example, we consider the following vehicles to be ZEVs:

  • battery-electric
  • plug-in hybrid electric
  • hydrogen fuel cell

Dealerships: You can now submit your claims for payment to Transport Canada through our online portal

Please note that there are new versions of the iZEV Program Consumer Consent Form and Incentive Received Form. Please always ensure that you are using the most up-to-date forms:

More information is available in the Questions and Answers for Dealers section.


Making zero-emission vehicles more affordable

We know that the higher cost of zero-emission vehicles (ZEVs) can make it more difficult to adopt this clean technology. The iZEV program and new tax write-offs for businesses will help make it more affordable.

Purchase and Lease Incentives

Effective May 1, 2019, we will provide point of sale incentive for consumers who buy or lease an eligible ZEV.

There are two levels of incentive:

  • Battery-electric, hydrogen fuel cell, and longer range plug-in hybrid vehicles are eligible for an incentive of $5,000
  • Shorter range plug-in hybrid electric vehicles are eligible for an incentive of $2,500

To be eligible for the Incentives for Zero-Emission Vehicles program, you have to purchase or lease:

  • a vehicle with six seats or fewer, where the base model (trim) Manufacturer's Suggested Retail Price (MSRP) is less than $45,000;
    • higher priced versions (trims) of these vehicles, up to a maximum Manufacturer's Suggested Retail Price (MSRP) of $55,000, will also be eligible for purchase incentives;

Or

  • a vehicle with seven seats or greater, where the base model Manufacturer's Suggested Retail Price (MSRP) is less than $55,000;
    • higher priced versions (trims) of these vehicles, up to a maximum Manufacturer's Suggested Retail Price (MSRP) of $60,000, will also be eligible for purchase incentives;

You will still be eligible for the incentive even if delivery, freight and other fees, such as vehicle colour and add-on accessories, push the actual purchase price over these set limits.

See Qs&As for more information.

How to receive the incentive

The purchase incentives for zero-emission vehicles will be applied at point-of-sale (i.e. at dealerships or online) directly on the bill of sale or lease agreement of eligible vehicle purchased or leased on or after May 1, 2019. Your dealership will be responsible for completing the documentation required to receive the incentive.

The federal purchase incentive for zero-emission vehicles will be applied in addition to any provincial zero-emission vehicles incentive offered.

Only new zero-emission vehicles are eligible for the federal incentive (i.e. vehicles that have not been plated before).

The incentive can be applied to eligible leased vehicles, but will be prorated based on the length of the lease. For example, a 48-month lease is eligible for the full incentive amount for the eligible vehicle in question and a 24-month lease will be eligible for half of the incentive for that vehicle.

There is a limit on how many vehicles Canadians can purchase or lease under the Program. Individuals can only get one incentive under this Program in a calendar year. Businesses and provincial and municipal governments operating fleets can only get up to 10 incentives under this Program in a calendar year.

Tax Write-Off

Budget 2019 proposed a 100-per-cent write-off for zero-emission vehicles to support business adoption. Eligible zero-emission vehicles include, a motor vehicle that is a plug-in hybrid (with a battery capacity of at least 7 kWh) or vehicles that are fully electric or fully powered by hydrogen, including light-, medium- and heavy-duty vehicles purchased by a business. This measure applies to eligible vehicles purchased and becoming available for use on or after March 19, 2019 and before January 1, 2024. Where the capital costs for eligible zero-emission passenger vehicles (e.g., cars and SUVs) exceeds $55,000, the 100 per-cent write off will be limited to $55,000 plus the federal and provincial sales tax that would have been paid if the vehicle was purchased for $55,000.

Vehicles in respect of which an incentive is paid under the new federal Incentive for Zero-Emission Vehicles Program will be ineligible for the 100-per-cent write-off.

For more information on the tax write-off for these vehicles, businesses and self-employed individuals may contact the Canada Revenue Agency at 1-800-959-5525.

Incentives for the Zero-Emission Vehicles (iZEV) Program

Under the Incentive for Zero-Emission Vehicles (iZEV) Program, a point-of-sale incentive will be applied to eligible zero-emission vehicles for purchases or leases that take place on or after May 1st, as determine by the date on the bill of sale or lease agreement.

  • What is a Zero-Emission Vehicle?

    A zero-emission vehicle, or ZEV, is a vehicle that has the potential to produce no direct tailpipe emissions. They can still have a conventional internal combustion engine, but must also be able to be operate without using it.

    For example, we consider the following vehicles to be ZEVs:

    • battery-electric
    • plug-in hybrid electric
    • hydrogen fuel cell
  • When does the iZEV program start?

    Incentives for zero-emission vehicles will be applied to eligible vehicles purchased or leased on or after May 1, 2019.

  • What if I bought a ZEV on April 29? Can I still get my incentive?

    No. The incentive program takes effect on May 1, 2019. Only purchases or leases of eligible zero-emission vehicles on or after this date will qualify for the incentive program.

  • If I have made a deposit already but have not made final payment, and have not yet received the vehicle, am I eligible?

    If the final bill of sale for the vehicle is on or after May 1st, 2019, the purchase is eligible regardless of when a deposit was made. For questions related to your bill of sale, please speak with your dealer.

  • If I buy or lease an eligible vehicle on May 1, what do I need to do to get my incentive payment, and how long will I have to wait?

    As of May 1st, an incentive will be applied at the point-of-sale (i.e. at dealerships or online) allowing consumers to benefit immediately when purchasing or leasing an eligible zero-emission vehicule. Your dealership will be responsible for completing the documentation required to receive the incentive.

  • What vehicles are eligible?

    • vehicles with six seats or fewer, where the base model (trim) Manufacturer's Suggested Retail Price (MSRP) is less than $45,000
      • higher priced versions (trims) of these vehicles, up to a maximum MSRP of $55,000, will also be eligible for an incentive

    And

    • vehicles with seven seats or greater, where the base model MSRP is less than $55,000
      • higher priced versions (trims) of these vehicles, up to a maximum MSRP of $60,000, will also be eligible for an incentive

    In all cases, to be eligible under the iZEV program, all vehicles must:

    • meet all Canada Motor Vehicle Safety Standards
    • be intended for use on public streets, roads, and highways; and
    • have at least four functioning wheels and be highway capable (e.g. not a low-speed vehicle)

    There are two levels of incentive:

    • Battery-electric, hydrogen fuel cell, and longer range plug-in hybrid vehicles (battery capacity is 15kWh or more) are eligible for an incentive of $5,000
    • Shorter range plug-in hybrid electric vehicles (battery capacity is less than 15kWh) are eligible for an incentive of $2,500

    Please refer to the list of eligible vehicles.

  • How will I know what vehicles are eligible for the iZEV incentive?

    Transport Canada will keep a list of eligible ZEV vehicles available for Canadians to view on the iZEV program web page.

    Important: Transport Canada will be seeking voluntary supply agreements with manufacturers, and reserves the right to take models off the list if the department does not secure adequate supply commitments.

  • What is a “long” versus a “short” range plug-in hybrid vehicle?

    Generally speaking, plug-in hybrid vehicles with a battery capacity of at least 15 kWh can accommodate a trip of 50 kilometres or more on a single charge. For the purpose of the iZEV program, these kinds of vehicles are defined as long range. Conversely, vehicles with lower battery capacity are defined as short range.

  • What is a vehicle trim level?

    A vehicle trim level is a pre-determined package of different equipment and finishes offered for a particular vehicle model (e.g., base, sport, touring, etc.). A vehicle model can have multiple trim levels. Different trim levels will typically have a different Manufacturer's Suggested Retail Price (MSRP).

  • Does it apply to leased vehicles?

    Yes, the incentive can be applied to eligible vehicles leased for 12 months or more, but will be prorated based on the length of the lease. For example, a 48-month lease is eligible for the full incentive amount for the eligible vehicle in question and a 24-month lease will be eligible for half of the incentive for that vehicle.

  • Are pre-owned zero-emission vehicles eligible?

    No, only new zero-emission vehicles are eligible for the federal incentive. New vehicles are those that have not been plated before.

  • Are demonstrator vehicles eligible?

    For the purposes of the Program, eligible zero-emission vehicles 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.

  • Can I purchase or lease a vehicle outside of Canada?

    No, only new vehicles purchased or leased within Canada, from a licensed dealer, are eligible.

  • What is the maximum amount of money that I can expect under the Program?

    Incentives of $5,000 are offered on certain eligible zero-emission vehicle purchases and leases.

  • How does it work with other provincial incentive programs?

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

  • Is it a first-come, first-serve incentive program?

    Yes, it is.

  • What are the timelines for taking advantage of the Program?

    While it was announced as a three-year program (2019-2022), a high demand is expected. Funding will be provided on a first-come, first-serve basis for vehicles purchased or leased on or after May 1, 2019.

  • Can businesses participate in the program?

    Yes, businesses are eligible for the federal zero-emission vehicle (ZEV) incentive. However, businesses that take advantage of the federal incentive, will not be able to take advantage of the new tax write-off for ZEVs that was also announced in Budget 2019.

    Businesses that take advantage of the federal ZEV incentives will be limited to a maximum of 10 incentives in any calendar year during the Program.

  • Can not-for profit organizations participate in the program?

    Yes, as long as they are duly registered in the relevant Canadian jurisdiction.

  • Can provincial, territorial and municipal governments operating fleets participate in the program?

    Yes, provincial, territorial, and municipal governments operating fleets are eligible for the federal zero-emission vehicle incentive. They will be limited to a maximum of 10 incentives in any calendar year during the Program.

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

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

    Individuals can only get one incentive under this Program in a calendar year.

    Businesses and provincial, territorial and municipal governments operating fleets can only get up to 10 incentives under this Program in a calendar year.

    If businesses choose to go this route, they will not be able to take advantage of the new tax write-off for these vehicles.

Contact us

For more information about the iZEV program, please contact us:

Phone: 1-800-OCanada (1-800-622-6232)
TTY: 1-800-926-9105
Email: iZEV-iVZE@tc.gc.ca
Address:
iZEV Program
330 Sparks St., Place de Ville, Tower C (AHSB)
Ottawa ON K1A 0N5

Incentives for the Zero-Emission Vehicles (iZEV) Program

  • What definition of Zero-Emission Vehicles is used for the program?

    A zero-emission vehicle, or ZEV, is a vehicle that has the potential to produce no direct tailpipe emissions. They can still have a conventional internal combustion engine, but must also be able to be operate without using it. For the iZEV program the Government will consider the following vehicles to be ZEV:

    • battery-electric
    • plug-in hybrid electric
    • hydrogen fuel cell
  • When does the iZEV program start?

    Incentives for zero-emission vehicles will be applied to eligible vehicles purchased or leased on or after May 1, 2019.

  • What if a customer purchases a ZEV vehicle on April 29? Can they still get the incentive?

    The incentive program takes effect on May 1, 2019. Only purchases and leases of eligible zero-emission vehicles on or after this date will qualify for the incentive program.

  • What vehicles are eligible?

    • vehicles with six seats or fewer, where the base model (trim) Manufacturer's Suggested Retail Price (MSRP) is less than $45,000
      • higher priced versions (trims) of these vehicles, up to a maximum MSRP of $55,000, will also be eligible for an incentive

    And

    • vehicles with seven seats or greater, where the base model MSRP is less than $55,000
      • higher priced versions (trims) of these vehicles, up to a maximum MSRP of $60,000, will also be eligible for purchase incentive

    In all cases, to be eligible under the iZEV program, all vehicles must:

    • meet all Canada Motor Vehicle Safety Standards
    • be intended for use on public streets, roads, and highways; and
    • have at least four functioning wheels and be highway capable (e.g. not a low-speed vehicle)

    There are two levels of incentive:

    • Battery-electric, hydrogen fuel cell, and longer range plug-in hybrid vehicles (battery capacity is 15kWh or more) are eligible for an incentive of $5,000
    • Shorter range plug-in hybrid electric vehicles (battery capacity is less than 15kWh) are eligible for an incentive of $2,500

    Please refer to the list of eligible vehicles.

  • Where can I find the list of eligible vehicles under the iZEV Program?

    Transport Canada will keep a list of eligible ZEV vehicles available for dealers to view on the iZEV program web page.

    Important: Transport Canada will be seeking voluntary supply agreements with manufacturers, and reserves the right to take models off the list if the department does not secure adequate supply commitments.

  • What do I need to do to be reimbursed for an incentive provided for an eligible vehicle?

    1. The authorized representative for the dealership registers/enrolls their dealership online with Transport Canada
      • The claim form will be available mid-May and will be published on the dealership page of the iZEV Program website
      • As part of the registration process, you will need to provide the dealership's direct deposit information and CRA Business number
    2. Before providing an incentive:
      • Determine whether any new ZEV purchases or leases meet the eligibility criteria and fall within the parameters of the program

        If unsure, please refer to the list of eligible vehicles or contact iZEV-iVZE@tc.gc.ca.

    3. To provide the incentive:
      • Apply appropriate level of incentive to purchases or leases directly to the price of the vehicle after taxes and fees
      • Have the consumers fill Transport Canada's Consumer Consent Form
      • Ensure that the Bill of Sale or Lease Agreement clearly identifies the federal incentive amount applied under the iZEV Program

        A suggested way to identify this is by adding a line item on the Bill of Sale or Lease Agreement with the appropriate incentive amount (on the same line) stating:

        • "Financial incentives for eligible zero-emission vehicles are provided by the federal iZEV Program"
      • If it is not possible to adjust the Bill of Sale or Lease Agreement to clearly show that the federal incentive level was applied, dealerships must have consumers complete and sign an Incentive Received Form
    4. To receive the reimbursement:
      • Starting May 15, the dealership's authorized representative will use TC's iZEV online portal to submit the completed sale/lease information
      • TC will contact you and provide instructions on how to securely send the supporting documentation for each transaction. This includes the:
        • Bill of Sale/Lease Agreement
        • Consumer Consent Form
        • Incentive Received Form (if applicable)
      • For privacy reasons, in the supporting documentation, please do not include (or redact):
        • drivers licence numbers
        • copies of drivers licences
        • credit card information
  • How long will it take before I get a reimbursement?

    TC will then review the documents for approval and payment. Our goal is to issue payments within 20 business days after receipt of a complete application.

    The online system will provide you with email notifications when the status of your application changes.

    Important: Please note that TC will not be held liable for incentives provided on ineligible vehicles and that TC reserves the right to refuse requests for reimbursement that do not meet the program’s terms and condition

  • Do the incentives apply to leased vehicles?

    Yes, the incentive can be applied to eligible vehicles leased for 12 months or more, but will be prorated based on the length of the lease. For example, a 48-month lease is eligible for the full incentive amount for the eligible vehicle in question and a 24-month lease will be eligible for half of the incentive for that vehicle.

    Incentive amount 48-month lease 36-month lease 24-month lease 12-month lease
    $5,000 $5,000 $3,750 $2,500 $1,250
    $2,500 $2,500 $1,875 $1,250 $625
  • Are pre-owned zero-emission vehicles eligible?

    No, only new zero-emission vehicles are eligible for the federal incentive. New vehicles are those that have not been plated before.

  • Are demonstrator vehicles eligible?

    For the purposes of the Program, eligible zero-emission vehicles 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.

  • What are the timelines of the Program?

    While it was announced as a three-year program (2019-2022), a high demand is expected. Funding will be provided on a first-come, first-serve basis for vehicles purchased or leased on or after May 1, 2019.

  • How does it work with other provincial incentive programs?

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

  • Can businesses benefit from the program?

    Yes, businesses are eligible for the federal zero-emission vehicle (ZEV) incentive. However, businesses that take advantage of the federal incentive, will not be able to take advantage of the new tax write-off for ZEVs that was also announced in Budget 2019.

    Businesses that take advantage of the federal purchase incentives will be limited to a maximum of 10 incentives in any calendar year during the Program.

  • Can not-for profit organizations benefit from the program?

    Yes, as long as they are duly registered in the relevant Canadian jurisdiction.

  • Can provincial, territorial and municipal governments operating fleets benefit from the program?

    Yes, provincial, territorial, and municipal governments operating fleets are eligible for the federal zero-emission vehicle incentive. They will be limited to a maximum of 10 incentives in any calendar year during the Program.

  • Is there a limit on how many vehicles a customer can purchase and apply for receiving the incentive?

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

    Individuals can only get one incentive under this Program in a calendar year.

    Businesses and provincial, territorial and municipal governments operating fleets can only get up to 10 incentives under this Program in a calendar year.

    If businesses choose to go this route, they will not be able to take advantage of the new tax write-off for these vehicles.

Contact us

For more information about the iZEV program, please contact us:

Phone: 1-800-OCanada (1-800-622-6232)
TTY: 1-800-926-9105
Email: iZEV-iVZE@tc.gc.ca
Address:
iZEV Program
330 Sparks St., Place de Ville, Tower C (AHSB)
Ottawa ON K1A 0N5

We understand that the availability of charging stations is a concern when purchasing a zero-emission vehicle (ZEV). To lessen this concern, we are providing funding for continued expansion of the network of ZEV charging stations in locations such as:

  • multi-unit residential buildings
  • workplaces
  • public places; and
  • on-street.

Support is also available for strategic projects for EV and/or hydrogen infrastructure for:

  • corporate fleets
  • delivery fleets; and
  • mass transit.

This new funding complements the existing Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative (2016 - 2022) that supports the establishment of a coast-to-coast fast-charging network along the national highway system, natural gas refuelling stations along key freight corridors and hydrogen refuelling stations in metropolitan centres.

To date, NRCan has projects in place to deliver 526 EV fast-chargers, six hydrogen refuelling stations and 12 natural gas refuelling stations as well as many real-world demonstration projects that have provided innovative EV charging solutions.

Electric Charging and Alternative Fuelling Stations Locator

See the map below for public electric charging stations.

Projected annual ZEV sales

Canada is committed to decarbonizing the country's transportation sector and becoming a global leader in zero-emissions vehicles. Analysis has shown that without any further action, Canada could achieve zero-emissions vehicle sales of 4% to 6% of all new light-duty vehicles purchased by 2025 and 5% to 10% by 2030. However, to move to decarbonization of the transportation sector, we need significantly more ZEVs on the road. That is why we are setting the following ambitious Canada-wide targets, to be achieved at a national level and encompassing battery electric vehicles, hydrogen fuel cell electric vehicles and plug-in hybrid electric vehicles:

  • By 2025, 10% of new light-duty vehicles sold in Canada will be zero-emission
  • By 2030, 30% will be zero-emission
  • By 2040, 100% will be zero-emission

Steady progress towards these targets would translate to:

  • 825,000 zero-emission vehicles on the road by 2025
  • 2.7 million on the road by 2030
  • 14 million on the road by 2040

Figure 1.0: What do Canada’s targets mean for ZEVs on the road over time?

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