The Government of Canada has just announced via a posting on its website that the federal electric vehicle incentives program, the iZev program, will be suspended on or before March 31, 2025.
This means that the $5,000 credit available to buyers of eligible EVs will no longer be available to consumers, at least temporarily. With the incentive reduced from $7,000 to $4,000 in Quebec on January 1, and temporarily eliminated as of February 1, 2025, this means that there will soon be no discount available on the purchase of an electric model in most of Canada.
In Quebec, the program could return in April, but that has yet to be confirmed, and we also know that it will be gone altogether within two years. The incentive will drop to $2,000 in January 2026 before being eliminated in January 2027.
Dealers will have to work hard to sell off inventories of EVs, as prices will no longer be the same for consumers.
The ZEV Council today announced to its members that “Once all funds are depleted, the program will pause and Canadians will not be able to receive incentives when purchasing/leasing new eligible vehicles through the iZEV Program. Prior to this, requests from dealerships and authorized sellers may be submitted as per usual until further updates are communicated.”
More information on this announcement will follow.
