The Canadian government is committed to making zero-emission vehicles (ZEVs) more accessible to everyone. Recognizing that the initial cost of ZEVs can be a barrier, the Canada Car Program, officially known as the Incentives for Zero-Emission Vehicles (iZEV) Program, is designed to help Canadians transition to cleaner transportation. This program offers significant financial incentives to reduce the purchase or lease price of eligible zero-emission vehicles.
Understanding the Canada Car Program (iZEV) Incentives
The iZEV Program provides point-of-sale incentives to eligible consumers who are looking to buy or lease a qualifying ZEV. To ensure you receive the incentive, it’s crucial to verify that the vehicle you are interested in is listed on the official eligible vehicles list. These incentives apply to purchases and leases of at least 12 months, starting from the vehicle’s eligibility date.
For those considering leasing, the incentive is prorated for leases shorter than 48 months. For instance, a 24-month lease will receive half the incentive amount compared to a 48-month lease.
Find which vehicles are eligible for an incentive as well as a vehicle’s eligibility date.
How to Access the Canada Car Program Incentives
Receiving your incentive is a straightforward process handled directly at the dealership. Once you’ve confirmed your eligibility with the dealership, they will apply the incentive directly to your purchase or lease agreement. As part of the verification process, you’ll be required to complete a Consumer Consent Form and an Incentive Received Form.
The dealership will ensure that taxes and fees are calculated before the incentive is applied, providing transparency in your transaction. It’s important to note that you should not be asked for a deposit to secure the incentive, nor should it be provided as a reimbursement cheque at a later date. The incentive is applied immediately at the point of sale.
Dealerships are responsible for submitting the necessary documentation to be reimbursed for the incentives they provide. Consumers are not able to directly request reimbursement from the program.
A significant advantage of the federal Canada Car Program is that these incentives can be combined with any provincial or territorial incentives that may be available, further reducing the cost of your ZEV.
Canada Car Program Incentive Limits
To ensure broad access to the Canada Car Program, there are limits on the number of incentives available per calendar year:
- Individuals: Limited to one incentive per calendar year.
- Organizations and Businesses: Eligible for up to 10 incentives annually. Affiliated organizations or businesses under common ownership (excluding publicly traded companies) are considered a single entity and share a combined limit of 10 incentives.
- Provincial/Territorial and Municipal Governments: Fleets operated by these levels of government are also eligible for up to 10 incentives.
- Carsharing Companies: Pre-approved carsharing companies can access up to 50 incentives per calendar year.
The iZEV Program actively monitors these limits and reserves the right to seek reimbursement if a recipient is found to have exceeded the eligible number of incentives within a calendar year.
Canada Car Program for Carsharing Companies
Carsharing companies play a vital role in expanding access to ZEVs. To be eligible for the Canada Car Program incentives, carsharing companies must meet specific criteria:
- Be a registered organization, either not-for-profit or for-profit, with a valid business number.
- Operate a membership or subscription-based program that offers members 24/7 self-service access to a fleet of vehicles, typically charged on a per-minute or per-hour basis.
Carsharing companies interested in participating in the iZEV Program should contact [email protected] to begin the eligibility process. Transport Canada will review applications based on the criteria mentioned above, and eligibility remains at their discretion. Approved carsharing companies can then receive up to 50 incentives per year for eligible ZEV purchases or leases made on or after March 28, 2023.
Types of Incentives under the Canada Car Program
The Canada Car Program offers two tiers of incentives based on vehicle type and electric range:
- Up to $5,000 Incentive: This higher incentive is available for battery-electric vehicles, hydrogen fuel cell vehicles, and plug-in hybrid vehicles with a longer electric range (50 km or more).
- Up to $2,500 Incentive: A $2,500 incentive is offered for plug-in hybrid electric vehicles with a shorter electric range (under 50 km).
Contact Us
For any further inquiries regarding the Canada Car Program or the iZEV Program, please reach out to the program team at [email protected] or call the toll-free line at 1-800-O-Canada for general information. Take advantage of the Canada Car Program and make the switch to a zero-emission vehicle today!
