The Incentives for Zero-Emission Vehicles (iZEV) program is Canada's federal EV rebate — providing up to $5,000 off the purchase or lease of an eligible new electric vehicle. The rebate is applied directly at the dealership, so you see instant savings at the point of sale.
Unlike some tax credits that require you to file a claim after purchase, the iZEV rebate is a true point-of-sale incentive. The dealer applies the rebate directly to your purchase price — reducing either your down payment requirement or the amount financed. You see the savings immediately on your sales contract.
The dealer submits a claim to Transport Canada on your behalf. There is no paperwork for the consumer beyond signing the purchase agreement.
| Vehicle Type | Rebate Amount | Requirement |
|---|---|---|
| Battery Electric Vehicle (BEV) | $5,000 | 100% electric, zero tailpipe emissions |
| Plug-in Hybrid (PHEV) — long range | $5,000 | 50+ km electric-only range |
| Plug-in Hybrid (PHEV) — standard | $2,500 | Under 50 km electric range |
| Hydrogen Fuel Cell (FCEV) | $5,000 | Zero tailpipe emissions |
| Regular Hybrid (HEV) | $0 | Not eligible — cannot plug in |
| Used EVs | $0 | New vehicles only |
One of the most confusing aspects of the iZEV program is the MSRP cap. Here is how it works:
For example: a vehicle with a base price of $52,000 qualifies. The same model in a fully-loaded AWD version at $68,000 does not qualify. The "top trim" rule allows the most expensive standard factory configuration up to $65,000.
The iZEV rebate applies to both purchases and leases, with one condition for leases: the lease term must be at least 12 months. Most standard car leases in Canada are 36–48 months, so this is rarely an issue.
For a leased vehicle, the rebate reduces the capitalized cost (effectively your starting price), which lowers your monthly lease payment throughout the term.
| Vehicle | Type | Starting MSRP | Rebate |
|---|---|---|---|
| Chevrolet Equinox EV | BEV | ~$44,998 | $5,000 |
| Hyundai IONIQ 6 | BEV | ~$46,999 | $5,000 |
| Kia EV6 | BEV | ~$48,495 | $5,000 |
| Volkswagen ID.4 | BEV | ~$48,495 | $5,000 |
| Ford Mustang Mach-E | BEV | ~$47,995 | $5,000 |
| Toyota RAV4 Prime | PHEV | ~$47,990 | $5,000 |
| Tesla Model 3 RWD | BEV | ~$54,990 | Check eligibility |
No. The iZEV program is only available for new (never previously registered) vehicles purchased or leased from a registered dealer.
No. The rebate is only applied through authorized dealerships — it cannot be claimed on private sales.
Yes, if the vehicle qualifies at the time of delivery and the program is still funded. Eligibility is based on delivery date. Keep your order confirmation as proof.
In most provinces, HST/GST is calculated on the price after the rebate is applied, which reduces your tax bill slightly. However, rules vary by province.
Yes — provincial rebates can be stacked with the federal iZEV rebate in provinces that offer them (BC, Quebec, Nova Scotia, PEI, Newfoundland). Ontario currently has no provincial EV rebate.
KOHO gives you cash back on gas and groceries — helping offset the cost of car ownership. No monthly fees, no minimum balance. Use code 45ET55JSYA for a sign-up bonus.
Get KOHO Free — Use Code 45ET55JSYALast updated: March 2025. The iZEV program is subject to funding availability and may change at any time. Always verify the current eligible vehicle list at tc.canada.ca/en/transport-policies/zero-emission-vehicles/izev-eligible-vehicles.