They’ve known it was coming, but EV and PHEV buyers in Canada’s most EV-friendly province are about to lose part of the incentive available to them. As of January 1, 2026, the EV subsidy under the Quebec government’s Roulez vert program is cut in half, from a maximum of $4,000 to $2,000.
The decrease is part of the government's plan for progressively reducing the incentive before killing it altogether. On 1 January 2025, the maximum amount of the Quebec subsidy dropped from $7,000 to $4,000. The subsidy will be completely eliminated as of 1 January 2027, meaning consumers in the province have only one year left to take advantage of a subsidy of any kind for the purchase of an electric vehicle. That’s barring a return of a federal EV incentive program - something that is under consideration but is far from certain.
Among the vehicles eligible for the lower $2,000 maximum subsidy under the Roulez vert program are the Audi Q4 55 e-tron Quattro, Cadillac Optiq, Chevrolet Equinox EV, Hyundai Ioniq 5, Kia Niro EV, Lexus RZ 350e, Nissan LEAF, Subaru Solterra and Toyota bZ.
A decrease for plug-in hybrid vehicles as well
The reduction in the subsidy does not apply solely to all-electric vehicles. Indeed, the same strategy is being adopted for vehicles equipped with plug-in hybrid technology.
On 1 January 2025, the maximum subsidy granted for the purchase of a plug-in hybrid vehicle dropped from $5,000 to $2,000. As of 1 January 2026, that drops to $1,000. Models equipped with a battery ranging from 8 kWh to 15 kWh are eligible for a maximum subsidy of $500.
Among the plug-in hybrid vehicles entitled to a $1,000 subsidy are the Chrysler Pacifica Hybrid, Lexus NX 450h+ and Volvo XC60 Recharge.
The subsidy granted to plug-in hybrid vehicles will likewise be withdrawn on January 1st, 2027.
A reduction for used electric vehicles
Finally, a similar fate is also reserved for used electric vehicles. As of January 1st, 2026, the maximum subsidy granted drops from $2,000 to $1,000. It will also be completely abolished as of January 1st, 2027.
In the rest of Canada
The federal iZEV program limps on with EV subsidies available on certain models, but it’s widely expected the program will end in early 2026 when funds provided by the last federal budget run out.
British Columbia has changed its Go Electric program to provide EV incentives based on income. Individuals earning less than $100,000 annually are still eligible for an incentive ranging up to $4,000.
At the other end of the country, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland & Labrador continue to offer incentives on EV and PHEV purchases.
In between, Ontario, Manitoba, Alberta and Saskatchewan offer no incentives to encourage EV purchases. In one year’s time, Quebec is thus set to join them; we might end up with a situation few would have predicted just three years ago: while some provinces will continue to offer the incentives, the province with the most EV buyers - and potential EV buyers - will not.