Canada Suspends Electric Vehicle Rebate Program

The Canadian federal government has paused its Incentives for Zero-Emission Vehicles (iZEV) Program, which provided rebates of up to $5,000 for electric vehicle purchases, due to the exhaustion of funds. Since its launch in 2019, the program has incentivized over 546,000 vehicle sales, contributing to a growth in zero-emission vehicles, which made up 11.7% of the market in 2023, up from 3.1% in 2019. The decision to pause the program came shortly after the government warned that available funding would run out soon, sparking concerns among dealers about pending applications. While some provinces like British Columbia and Quebec continue to offer their own rebates, the absence of federal support raises questions about future EV sales. Tesla has already increased prices, suggesting that the end of the rebate may lead to higher costs for consumers. The Canadian government aims for 20% of new vehicle sales to be electric by 2026 and 100% by 2035.