$5,000 EV Rebate in Canada for 2025: Switching to an electric vehicle (EV) in 2025? You’re probably wondering about the $5,000 EV rebate in Canada. It’s a big incentive that has made electric vehicles far more accessible and appealing to Canadian drivers over the past few years. Especially as fuel prices remain high and environmental awareness grows, EVs are an increasingly attractive option. But here’s the catch: the federal iZEV rebate has been paused, and many Canadians are left asking, “What now?”
This article is here to guide you through everything you need to know about Canada’s EV rebate situation in 2025. Whether you’re a first-time EV buyer, a green-conscious parent, a corporate fleet manager, or someone looking to save on daily commuting costs, this guide breaks it all down in simple, actionable language. We’ll cover the changes, what you can still take advantage of, and how to navigate the transition to electric as smoothly as possible.
$5,000 EV Rebate in Canada for 2025
| Feature | Details |
|---|---|
| Federal iZEV Rebate | Paused as of January 2025 Transport Canada |
| Maximum Federal Incentive | $5,000 for eligible battery-electric, plug-in hybrid, and hydrogen fuel cell vehicles |
| Provincial Rebates | Quebec: up to $4,000; BC: up to $4,000; Nova Scotia: up to $3,000; Yukon: up to $5,000 |
| Tesla Eligibility | Excluded from future federal rebates; $43M in payments frozen Reuters |
| Alternative Offers | Many automakers (e.g., Hyundai, GM, Ford) are offering dealer or manufacturer discounts |
While the $5,000 EV rebate in Canada is currently on pause, that doesn’t mean your journey to owning an electric vehicle is over. In fact, with provincial programs, automaker discounts, and growing infrastructure support, 2025 is still a great year to go electric.
From reducing your carbon footprint to saving thousands in fuel and maintenance, the switch to electric makes sense for personal users and businesses alike. By staying informed and acting strategically, you can make the most of the evolving incentive landscape and drive into a cleaner, more sustainable future.
Why Was the $5,000 EV Rebate Paused in 2025?
The iZEV (Incentives for Zero-Emission Vehicles) program, first launched in 2019, provided a federal incentive of up to $5,000 for the purchase or lease of new zero-emission vehicles. It was widely successful and supported a growing shift toward cleaner transportation across the country. However, with EV adoption surging faster than expected and available funds running out, Transport Canada officially paused the rebate program in January 2025, a few months earlier than its originally planned expiration in March.
This move came as a surprise to many prospective buyers who had counted on the rebate to make their EV purchase more affordable. And while it’s currently unclear whether the rebate will return in a new form, many experts believe future climate policy updates could reintroduce a modified version.
What Are the Provincial EV Rebates in 2025?
Fortunately, Canadian provinces have stepped in to fill the gap. Several provinces offer their own EV rebates that can be combined with dealer incentives to significantly reduce your overall cost. Here’s a look at what’s currently available across Canada:
Quebec
- Rebate: Up to $4,000 for new EVs (reduced from $7,000 in 2024)
- Program: Roulez vert
- Extras: Additional support for home charging stations
- Phase-out plan: Gradually decreasing until it ends in 2027
- Official website
British Columbia (BC)
- Rebate: Up to $4,000
- Program: CleanBC Go Electric
- Eligibility: Income-tested program with caps on vehicle price (up to $55,000 to $70,000 MSRP)
- Other perks: Incentives for Level 2 home charging installation
Nova Scotia
- Rebate: Up to $3,000 for new EVs, plus $500 for used EVs
- Program: Electrify Nova Scotia
- Bonus: $250 toward e-bikes and electric motorcycles
Yukon
- Rebate: Up to $5,000 for EVs, including used models
- Stackable: Can be combined with other federal or local programs when active
- Community grants: Available for rural and Indigenous communities
Other Provinces
In places like Alberta, Saskatchewan, and Manitoba, there are currently no province-wide EV rebate programs. However, certain cities and utility providers offer grants for EV chargers, special electricity rates, or pilot programs that aim to support electrification on a smaller scale.
What Cars Still Qualify for Rebates in 2025?
Whether you’re buying for personal use or business, rebate eligibility depends on specific factors including vehicle type, manufacturer suggested retail price (MSRP), and whether it’s a new or used model.
General Eligibility Criteria:
- Vehicle must be a battery-electric (BEV), plug-in hybrid (PHEV), or hydrogen fuel cell model
- MSRP must typically be under $55,000 to $70,000 depending on the province and trim
- Most rebates apply only to new vehicles, though some provinces support used EVs
- Must be purchased or leased from a licensed dealership
Examples of Eligible Models:
- Hyundai Ioniq 5 – A popular compact SUV with fast charging and long range
- Chevrolet Bolt EUV – Affordable, compact, and widely eligible across provinces
- Ford Mustang Mach-E – Select trims under MSRP limits
- Nissan LEAF – A classic choice with long rebate eligibility history
- Toyota Prius Prime – A plug-in hybrid ideal for city drivers
Note: Tesla vehicles are excluded from the federal iZEV program, and their eligibility at the provincial level is being reviewed. Some provinces may still allow rebates depending on evolving trade and compliance rulings.
Manufacturer and Dealer Discounts: A Silver Lining
With the federal rebate temporarily unavailable, many automakers are introducing their own savings programs to maintain momentum in EV adoption. These manufacturer and dealer incentives can be just as valuable, especially when combined with provincial rebates.
What Automakers Are Offering:
- Hyundai: Loyalty bonuses, cash-back deals, and low-interest EV leases
- GM (Chevrolet): Up to $2,000 in instant discounts for select EV models
- Ford: Rebates on EV trims like the Mach-E and F-150 Lightning
- Nissan: Stackable rebates and extended battery warranties on the LEAF
Be sure to ask your dealer about any limited-time promotions, inventory clearance discounts, or corporate purchase programs if you’re buying multiple vehicles.
Apply for a Provincial EV Rebate
The rebate application process varies by province, but it’s usually quite straightforward. Most programs are designed to encourage participation with minimal red tape.
$5,000 EV Rebate in Canada for 2025 Guide:
- Check eligibility: Confirm your vehicle qualifies using your province’s rebate portal.
- Purchase or lease: Buy from a licensed dealership that participates in the program.
- Submit documentation: Provide proof of sale, registration, and any supporting documents.
- Apply online: Use your province’s online system or let the dealership submit on your behalf.
- Receive your rebate: Payouts typically arrive by direct deposit or cheque in 6 to 12 weeks.
Pro tip: Some provinces require applications to be submitted within 90 days of purchase—so act quickly!
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How the Rebate Affects Professionals and Businesses
For professionals and businesses, electric vehicles aren’t just about being green—they can be financially smart investments. Many provincial programs allow companies and non-profits to benefit from rebates, and these vehicles can also qualify for federal tax write-offs and other climate-focused incentives.
Key Benefits for Businesses:
- Lower fuel costs: EVs are significantly cheaper to run than gas vehicles
- Reduced maintenance: Fewer moving parts means fewer breakdowns
- Enhanced image: Consumers appreciate brands that demonstrate environmental leadership
Business Case Example:
A delivery company in Vancouver replaces 10 aging gas-powered vans with electric cargo vans:
- Rebate per van: $4,000 (BC CleanBC program)
- Annual fuel savings per van: $1,500
- Maintenance savings: $700/year/vehicle
- Green branding advantage: Increased customer loyalty and competitive bids
- Total first-year savings: Over $62,000, with long-term benefits projected at over $300,000
FAQs On $5,000 EV Rebate in Canada for 2025
1. Is the federal $5,000 EV rebate coming back?
Not officially. While it’s currently paused, government climate funding could reinstate it under a future plan. Stay updated through Transport Canada’s website.
2. Can I still get a rebate on a Tesla?
At the moment, no federal rebate applies to Tesla. Some provinces may still include them, but their eligibility is under active review.
3. Are used EVs eligible for rebates?
Yes, in provinces like Nova Scotia and Yukon, used EVs qualify for smaller but still helpful rebates.
4. Do plug-in hybrids qualify?
Yes, plug-in hybrids (PHEVs) do qualify, provided they meet the battery capacity and MSRP limits of your provincial program.
5. How long does it take to get my rebate?
Most rebates are processed in 6 to 12 weeks, depending on province workload and application volume.
