Canada's iZEV Program is Paused: What EV Incentives Can You Still Get in 2025?

Canada’s iZEV Program is Paused: What EV Incentives Can You Still Get in 2025?

For years, Canadian car buyers could count on a standard federal rebate to lower the cost of an electric vehicle. That landscape has fundamentally changed. While the popular $5,000 federal iZEV rebate is paused, a complex but valuable array of Canada EV incentives in 2025 still exists, primarily at the provincial and territorial levels.

The end of the national program has shifted the entire financial equation for prospective EV owners, making it critical to understand the specific rebates available where you live. This guide serves as the definitive resource for navigating these changes and uncovering every available saving. The federal Incentives for Zero-Emission Vehicles (iZEV) Program was officially paused as of January 12, 2025, after its allocated funds were fully committed.

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Canada’s iZEV Program is Paused: What Happened to the $5,000 Federal Rebate?

The Incentives for Zero-Emission Vehicles (iZEV) program was a cornerstone of Canada’s strategy to encourage the adoption of electric vehicles. Launched in 2019, it provided a point-of-sale incentive of up to $5,000 for new battery-electric (BEV), hydrogen fuel cell, and long-range plug-in hybrid (PHEV) vehicles. However, the program’s own success led to its premature suspension.

The program was scheduled to conclude on March 31, 2025, or whenever its funding was exhausted. Due to a dramatic increase in public demand for EVs in recent years, the program’s funds were depleted far ahead of schedule. The final announcement on January 10, 2025, that the program was nearing its end triggered an unprecedented weekend rush of rebate applications from consumers and dealerships, exhausting the final $71.8 million in available funds almost immediately. Consequently, Transport Canada officially paused the program on January 12, 2025.

The market impact was immediate and severe. The pause of the federal incentive, which had become a key factor in the purchasing decisions of many Canadians, led to a significant downturn in EV sales. According to industry reports, Canadian EV sales dropped by 44.9% year-over-year in March 2025, just two months after the program ended. This sharp decline illustrates a clear disconnect between federal policy goals and market realities. While the government maintains one of the world’s most aggressive ZEV sales mandates—requiring 20% of new vehicle sales to be zero-emission by 2026 and 100% by 2035—it has simultaneously removed the primary financial tool that was driving consumer adoption toward those targets.

Currently, the iZEV program’s status is “paused,” not permanently cancelled. Government ministers have indicated that consumer incentives will likely return in a different form, though no official timeline or details have been announced. Until a new federal program is unveiled, prospective buyers must turn to provincial and territorial governments for financial assistance.

Are There Any Federal EV Incentives Left for 2025?

While the primary consumer rebate for light-duty vehicles is on hold, the federal government continues to offer other ZEV incentives, though they are targeted specifically at commercial and business use cases.

For Businesses: The iMHZEV Program for Trucks and Vans

Separate from the consumer program, the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program remains active. This program provides substantial point-of-sale rebates for Canadian businesses and organizations looking to electrify their commercial fleets. Incentives can reach up to $200,000 per vehicle for larger trucks, cargo vans, shuttles, and other commercial ZEVs. The iMHZEV program is scheduled to continue until March 31, 2026, subject to available funding.

For Businesses: Federal Tax Incentives (Capital Cost Allowance)

Canadian businesses can also take advantage of a significant tax incentive through an enhanced first-year Capital Cost Allowance (CCA). This measure allows for a 100% tax write-off in the first year for the purchase of eligible ZEVs. Under this provision, businesses can deduct a higher portion of the vehicle’s cost from their taxable income, up to a limit of $61,000 plus tax for vehicles acquired between January 1, 2024, and December 31, 2025. It is important to note that businesses cannot claim this enhanced CCA if they have already received an incentive from the iZEV or iMHZEV programs for the same vehicle.

2025 Provincial EV Rebates in Canada

Where to Find EV Incentives Now Province-by-Province

With the national iZEV program on hold, the landscape of Canada EV incentives in 2025 has become a patchwork quilt of provincial and territorial programs. EV affordability now varies significantly across the country, creating a fragmented system where a buyer’s potential savings are dictated by their postal code. This section provides a comprehensive, province-by-province guide to every remaining rebate.

To simplify this complex environment, the following table offers an at-a-glance comparison of the key consumer EV rebate programs across Canada.

Province/TerritoryProgram NameMax Rebate (New BEV)Program Status (2025)Key MSRP Cap
British ColumbiaCleanBC Go ElectricUp to $4,000Paused for Review (as of May 15)$55,000 (Cars)
QuebecRoulez Vert$4,000Active (Reduced Amount)Under $65,000
Prince Edward IslandUniversal EV Rebate$5,000 (+$1,000 Scrappage)ActiveNone
New BrunswickPlug-In NB$5,000Active$70,000
Nova ScotiaElectrify NS$3,000 (+$500 Low-Income)Active$70,000
ManitobaEV Rebate Program$4,000ActiveUnder $70,000
YukonZEV Rebate$5,000ActiveN/A
Newfoundland & Lab.EV Rebate Program$2,500Ended March 15, 2025$70,000

British Columbia EV Rebate Guide

British Columbia has long been a leader in EV adoption, supported by one of Canada’s most established incentive programs. However, 2025 has brought significant changes to the BC EV rebate landscape.

Is the BC EV Rebate Still Available in 2025? (CleanBC Program Status)

The CleanBC Go Electric passenger vehicle rebate program was officially paused on May 15, 2025. The provincial government initiated this pause to conduct a comprehensive review of the program’s effectiveness and future direction, with results expected in the fall of 2025. This move reflects a broader trend among governments to re-evaluate the high costs and overall impact of long-running subsidy programs amid changing economic conditions.

Before the pause, the CleanBC program offered income-tested rebates. Residents earning up to $80,000 annually were eligible for the maximum rebate of up to $4,000 for a BEV or long-range PHEV. Partial rebates were available for those with incomes between $80,001 and $100,000, while individuals earning over $100,000 were ineligible. The program also had strict Manufacturer’s Suggested Retail Price (MSRP) caps: the base model of a passenger car had to be under $55,000, while larger vehicles like SUVs and trucks were capped at $70,000.

BC Home and Workplace Charger Rebates

Even with the vehicle rebate paused, valuable incentives for charging infrastructure remain available in British Columbia. For homeowners, a rebate covering up to 50% of the purchase and installation cost of an eligible Level 2 EV charger, to a maximum of $350, is available for single-family homes, duplexes, and townhouses.

Furthermore, comprehensive rebate programs exist for installing chargers in multi-unit residential buildings (MURBs) like apartments and condos, as well as at workplaces. These programs, administered by BC Hydro and FortisBC, are designed to overcome the barrier of charging accessibility for renters and employees and remain a key part of the province’s electrification strategy.

Quebec EV Rebate Guide (Roulez Vert Program)

Quebec continues to offer one of the most comprehensive and popular EV incentive programs in the country, known as Roulez Vert. However, the program is undergoing a planned, gradual phase-out.

How Much is the Quebec EV Rebate in 2025?

As of January 1, 2025, the maximum rebate available for the purchase or lease of a new fully electric vehicle under the Roulez Vert program is $4,000. This is a significant reduction from the $7,000 offered in 2024. To be eligible, the vehicle’s base MSRP must be under $65,000.

The program also provides rebates for other types of vehicles:

  • Plug-in Hybrids (PHEVs): Up to $2,000 for models with a battery capacity of 15 kWh or more, and up to $1,000 for models with a battery between 8 and 14.9 kWh.
  • Used Fully Electric Vehicles: A rebate of up to $2,000 is available for eligible used BEVs purchased from a licensed dealer in Québec.
  • Electric Motorcycles: A rebate of up to $1,000 is available.

It’s important to note that the program was temporarily suspended from February 1 to March 31, 2025, and any vehicles registered during that period were not eligible for financial assistance.

Quebec Rebates for Home Charging

In addition to vehicle rebates, the Roulez Vert program offers financial assistance for charging infrastructure. Homeowners can receive a rebate of up to $600 to help cover the cost of purchasing and installing a home charging station. Rebates of up to $5,000 per charger are also available for multi-residential buildings.

The Future of the Roulez Vert Program: A Phase-Out Schedule

The Quebec government has been transparent about its plan to gradually eliminate the Roulez Vert program as the EV market matures. The rebate amounts are scheduled for further reduction before the program concludes entirely:

  • In 2026: The maximum rebate for a new BEV will decrease to $2,000.
  • On December 31, 2026: The Roulez Vert program is scheduled to end completely.

This clear phase-out schedule provides crucial, forward-looking information for consumers in Quebec who are planning a future EV purchase.

Atlantic Canada EV Incentives: A Regional Powerhouse

With the federal rebate paused, Atlantic Canada has emerged as a leader, offering some of the most generous and straightforward EV incentives in the nation.

Prince Edward Island: Canada’s Most Generous Rebates

Prince Edward Island currently offers the most attractive rebate package in Canada. Residents can receive $5,000 for a new BEV and $2,500 for a new PHEV. Uniquely, PEI also offers an additional $1,000 scrappage bonus for residents who trade in an older gasoline-powered vehicle, bringing the potential total to $6,000. The most significant advantage of PEI’s program is that there is no MSRP cap, allowing buyers to apply the rebate to a wider range of vehicles, including premium models.

New Brunswick: The Plug-In NB Rebate Program

New Brunswick’s Plug-In NB program offers a rebate of $5,000 for a new BEV and $2,500 for a new PHEV, with a vehicle MSRP cap of $70,000. The program also extends to used vehicles, offering $2,500 for a used BEV and $1,000 for a used PHEV. Additionally, a rebate of up to $750 is available to help cover the cost of a home charging station. Note: Some sources indicated the program ended in July 2025, while others list it as active; buyers should verify the current status with official provincial sources.

Nova Scotia: The Electrify NS Rebate Program

Through the Electrify Nova Scotia program, residents can receive a rebate of $3,000 for a new BEV and $2,000 for a new PHEV. The program is particularly notable for its focus on accessibility, offering an additional $500 bonus for low-income applicants and providing rebates for used vehicles ($2,000 for BEVs, $1,000 for PHEVs). The MSRP cap for eligible vehicles is $70,000.

Newfoundland & Labrador: Program Status Update

Prospective EV buyers in Newfoundland and Labrador should be aware that the province’s EV rebate program, which offered up to $2,500, concluded on its scheduled end date of March 15, 2025. There are currently no provincial point-of-sale rebates available for EV purchases in the province.

EV Rebates in The Prairies and Territories

Incentives in the Prairie provinces and Canada’s territories vary widely, from generous rebates in the north to a complete absence of provincial programs in others.

Yukon: Strong Rebates for Northern Drivers

The Yukon government offers a generous rebate of $5,000 for new BEVs and long-range PHEVs (with an electric range over 50 km). However, a significant change was implemented in 2025: as of April 3, 2025, Tesla vehicles are no longer eligible for this rebate. This exclusion also applies to the territory’s charger rebates. The Yukon also provides robust support for charging infrastructure, with rebates of up to $1,500 for homeowners and even larger amounts for businesses, municipalities, and First Nations governments (up to $9,000).

Manitoba: What to Know About the EV Rebate Program

Manitoba’s Electric Vehicle Rebate Program provides up to $4,000 for the purchase of a new eligible BEV and $2,500 for a pre-owned one. The program is scheduled to run until March 31, 2026, or until its allocated funds are depleted. To be eligible, a new vehicle’s MSRP must be under $70,000, and a pre-owned vehicle must be a 2022 model year or newer in 2025.

Alberta & Saskatchewan: Are There Provincial EV Rebates?

As of 2025, there is a clear answer for residents of Alberta and Saskatchewan: no, neither province currently offers a government rebate for the purchase of a personal electric vehicle. While the federal iZEV program was active, buyers in these provinces could access it, but with its pause, there are no provincial-level programs to fill the gap. Some municipalities or utility providers may offer smaller incentives for the installation of home charging stations.

FAQ about Canada EV Incentives 2025

Your Top Questions Answered

Navigating the new world of EV incentives can be confusing. This section provides direct answers to the most common questions.

Can I still get the $5,000 federal EV rebate in Canada?

No. The federal Incentives for Zero-Emission Vehicles (iZEV) program, which offered up to $5,000, was paused on January 12, 2025. The program’s funds were completely exhausted due to high demand. To get a rebate on an EV purchase in 2025, you must now look to the programs offered by your specific province or territory.

Which province has the best EV rebate in 2025?

Prince Edward Island currently offers the most generous potential rebate package. Residents can receive $5,000 for a new battery-electric vehicle, plus an additional $1,000 if they scrap an eligible older gasoline car, for a potential total of $6,000. Crucially, PEI’s program has no price cap on eligible vehicles, offering the greatest flexibility.

Are used electric cars eligible for rebates in Canada?

Yes, several provinces recognize the importance of the used EV market and offer rebates. As of 2025, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, and Manitoba all provide specific financial incentives for the purchase of used electric vehicles. The rebate amounts are typically lower than those for new vehicles and have their own eligibility criteria.

Can I get a rebate for installing a home EV charger?

Yes. Recognizing that charging accessibility is key to EV ownership, many jurisdictions offer separate rebates to help with the cost of a Level 2 home charger. British Columbia, Quebec, New Brunswick, and Yukon all have active programs that provide financial assistance for the purchase and installation of residential charging stations.

Do Tesla vehicles qualify for rebates in Canada?

Eligibility for Tesla vehicles is complex and varies by province. Many Tesla models were ineligible for the former federal iZEV program because their MSRP exceeded the program’s price caps. At the provincial level, eligibility depends on the specific program’s rules. For example, as of April 3, 2025, all Tesla vehicles are explicitly ineligible for the Yukon’s vehicle and charger rebate programs. Buyers should always consult the official list of eligible vehicles for their specific provincial program before making a purchase.

Other Financial Benefits of Owning an EV in Canada

Calculating the True Cost: Savings on Fuel and Maintenance

While point-of-sale rebates are a powerful motivator, they represent only the beginning of the financial benefits of switching to an electric vehicle. The long-term value proposition of EV ownership is rooted in significantly lower operating costs. EV owners are completely insulated from volatile gasoline prices, and charging an EV with electricity at home is substantially cheaper than filling a tank with gasoline.

Furthermore, the mechanical simplicity of EVs leads to major savings on maintenance. With no engine oil to change, no spark plugs to replace, and far fewer moving parts than a traditional internal combustion engine, the routine maintenance schedule for an EV is both simpler and less expensive over the vehicle’s lifetime. In some provinces, like Quebec, EV owners may also benefit from additional perks such as access to carpool lanes and exemptions from certain bridge tolls, further enhancing the financial advantage. When these long-term savings are factored in, the total cost of owning an EV is often much more competitive than its initial sticker price might suggest.

Checkout: Beyond the Sticker Price: Calculating the True Cost of Owning an Affordable EV