‘Everybody’s stunned’: Ottawa abruptly pauses electric vehicle rebate program

The federal government has paused an incentive program that offered Canadians rebates of up to $5,000 when buying or leasing electric vehicles. An electric vehicle being charged on a street in Montreal, Tuesday, November 5, 2024. (Graham Hughes/The Canadian Press)

The federal government has abruptly paused its electric vehicle rebate program.

The Incentives for Zero-Emission Vehicles (iZEV) Program was scheduled to end March 31, but Transport Canada said a “surge in interest” has led to available funds running out faster than anticipated.

Daniel Breton, president and CEO of Electric Mobility Canada, says the announcement comes as a shock.

“I’m getting phone calls from dealers and manufacturers, everybody’s stunned to see how sudden this has been,” said Brenton.

Since 2019, the program offered drivers a rebate of up to $5,000 for new light-duty electric cars.

According to Transport Canada, eligibility applications that have been submitted and approved before the announcement will still be able to receive the incentive.

Transport Canada calls the program a “huge success,” adding that it offered rebates for more than 546,000 EVs.

Subsidies for medium- and heavy-duty vehicles will continue to be offered. It is not clear when the program will resume.

Meanwhile, Quebec’s Roulez vert subsidy program will be put on hold next month.

When it resumes in April, subsidies for fully electric vehicles will go from $7,000 (2024) to $4,000 (2025) before dropping to $2,000 (2026) and then nothing in 2027 when the program comes to an end.