Buying a new electric or hybrid car? Then make use of government incentives. Government incentives are special price cuts that the Canadian government offers to car buyers to promote and support the development, production and sales of electric or hybrid vehicles. The federal government does not offer any consumer incentives, which means that only select provincial governments do so.
In British Columbia, there is an efficiency incentive program called LiveSmart BC. Its purpose is to encourage the residents of the province to make environmentally-conscious decisions. The Clean Energy Vehicle and Scrap-It initiatives are both part of the LiveSmart BC’s efforts of incentivising everyone to purchase an electric or hybrid car or dispose of their old, gasoline-powered vehicles.
The Clean Energy Vehicle (CEV) program was introduced in November of 2011, with the funding of $14.3 million. On December 1 of 2011, the program began offering what they called “Point-of-Sale” incentives of up to $5,000 per eligible clean energy vehicle. The program lasted until February of 2014, when the funds for it completely depleted.
The Scrap-It Program is currently working to reduce greenhouse gas emissions and improve air quality. This is being achieved by removing old, gasoline-powered vehicles off the roads and then recycling them. The program offers qualifying car owners incentives to scrap their old car. Those incentives may include a new or used car, bicycle, transit pass, car sharing membership or $200 in cash.
In Ontario, the government has implemented a program called the Electric Vehicle Incentive Program, which came to life on July 1 of 2010. The program is designed to encourage consumers to purchase an electric vehicle by providing a special cash rebate. Ontario consumers can apply for a rebate ranging from $5,000 to $8,500 toward the purchase or lease of a new plug-in hybrid electric or battery electric vehicle. The value of the rebate is based on the vehicle’s battery capacity.
The Ontario government also offers a rebate for the purchase of a Level 2 charging station. While it is possible to charge the battery from a household outlet, upgrading to a Level 2 charging station charges the car faster. The rebate will cover 50 per cent of the purchase cost up to $500 and 50 per cent of the installation cost up to $500 for a maximum value of $1,000.
In Quebec there is a government incentive program called Running on Green Power. This program offers a range of rebates for all-electric vehicles, plug-in hybrid vehicles, hybrid vehicles and low-speed electric vehicles.
The rebate granted for an all-electric or plug-in hybrid vehicles is $4,000 or $8,000. The amount of the rebate is calculated according to the capacity of the vehicle’s electric battery.
The rebate granted to a non-plug-in hybrid vehicle is $500. This program will exist only until December 21, 2016 or until 15,000 rebates for green vehicles have been granted.
The low-speed electric vehicles that are eligible for the program are those authorized to operate on Quebec roads only. These vehicles are eligible for a $1,000 rebate.
Prior to April 1, 2013 the province of Prince Edward Island offered a Revenue Tax (PST) Refund of up to $3,000 on hybrid vehicles purchased between March 30, 2004 and March 31, 2013. After paying the provincial sales tax on the vehicle, the owner can submit a request for a refund with the original receipt. The buyer has up to four years to request a refund from the date of purchase, which is still valid despite the expiration of the program.
If you have any additional questions, feel free to contact us at any time or access our free dealer cost report.
Updated on March 26, 2013
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