As the world moves toward a greener future, Canada is taking a bold step by increasing its federal Electric Vehicle (EV) rebate to $12,000 in 2025. This major boost in financial support is aimed at making EVs more accessible for Canadians while helping the country meet its zero-emissions targets.
Whether you’re planning to buy a new EV or already researching options, this article covers everything you need to know about the new rebate, who qualifies, how to apply, and key deadlines.
What Is the Canada EV Rebate?
The Canadian government offers a point-of-sale rebate to individuals who purchase or lease eligible new zero-emission vehicles. The program, formerly known as the iZEV (Incentives for Zero-Emission Vehicles) program, has been significantly upgraded in 2025 to encourage greater EV adoption.
What’s New in 2025?
The maximum federal EV rebate has been increased to $12,000, up from the previous limit of $5,000. This is part of a nationwide plan to support cleaner transportation and combat climate change.
Breakdown of the 2025 EV Rebate:
| Category | Rebate Amount (Up to) | Notes |
|---|---|---|
| Battery Electric Vehicles (BEVs) | $12,000 | Full amount available for eligible models |
| Plug-in Hybrid Electric Vehicles (PHEVs) | $6,000 | Based on battery range |
| Hydrogen Fuel Cell Vehicles | $12,000 | Same as BEVs |
| Used Zero-Emission Vehicles | $3,000 | New in 2025 – federal rebate for used EVs |
Which Vehicles Are Eligible?
To qualify for the full rebate, your vehicle must:
- Be new or registered for the first time
- Be fully electric, plug-in hybrid, or hydrogen fuel cell
- Be listed on the Transport Canada eligible vehicle list
- Have a manufacturer’s suggested retail price (MSRP) under $70,000
Used vehicles must be:
- At least two years old
- Purchased from a licensed dealer
- Registered in Canada for the first time under your name
How to Apply for the Rebate
For New EVs:
- The rebate is applied directly at the dealership at the time of purchase or lease.
- The dealer submits the paperwork on your behalf to Transport Canada.
- You see the rebate deducted from the total cost right away.
For Used EVs:
- Apply online through the federal government portal after purchase.
- Upload a copy of your bill of sale, proof of insurance, and registration.
- The rebate is issued via direct deposit or cheque within 6–10 weeks.
Provincial EV Rebates – Can You Stack Them?
Yes! Most provinces offer their own EV incentives, and these can be combined with the federal rebate. For example:
| Province | Provincial Rebate (Up to) | Total Possible Rebate (Federal + Provincial) |
|---|---|---|
| Quebec | $7,000 | $19,000 |
| British Columbia | $4,000 | $16,000 |
| Nova Scotia | $3,000 | $15,000 |
| Ontario | None | $12,000 (Federal only) |
Make sure to check your provincial government’s website for updated eligibility and application details.
Important Dates to Remember
- Effective Date: The enhanced rebate came into effect on January 1, 2025.
- Application Deadlines:
- New EVs: Rebate must be applied at time of sale.
- Used EVs: Must apply within 90 days of purchase.
Additional Benefits
On top of the rebate, Canadian EV buyers in many provinces may also benefit from:
- Free or discounted charging station installation
- Reduced vehicle registration fees
- Access to HOV lanes
- Lower maintenance and fuel costs
Key Things to Watch Out For
- Luxury trims over MSRP cap do not qualify.
- The rebate applies once per individual per year.
- Make sure your vehicle is on the official eligibility list before buying.
- Leases must be for a minimum of 48 months to qualify for full rebate.
Final Thoughts
With the federal EV rebate increasing to $12,000 in 2025, this is an ideal time to consider making the switch to electric. Whether you’re buying new or used, this financial boost—combined with provincial offers—can significantly reduce your costs.
Make sure you understand the criteria, act quickly, and claim your rebate efficiently. Canada’s path to a greener future starts with incentives like these—and now, you can drive the change.