Canadian auto dealer was on hand at a press event in Montreal, Que., yesterday when Marc Garneau, Canada’s Minister of Transport, unveiled details of the government’s zero emissions vehicle — or ZEV — program. As of May 1, the federal ZEV program will provide eligible buyers with a rebate of between $2,500-$5,000 when they purchase certain vehicles.
“I am glad to announce that on May 1, in two weeks, Canadians will be eligible to receive up to $5,000 towards the purchase or lease of a new eligible zero-emission vehicle,” said Canada’s Minister of Transport Marc Garneau, at the press conference.“This initiative will help middle-class Canadians overcome the higher initial purchase prices for these vehicles.”
The government is proposing to invest $300 million over three years on its ZEV incentive program.
The ZEV incentive plan was first announced when Finance Minister Bill Morneau tabled the 2019 federal budget in March. Details were pending, but have since been clarified — for the most part. “This is why it’s important to have these moments of adjustments after the (federal) budget was announced,” said Garneau.
Garneau said consumers seeking to purchase a passenger vehicle of six or fewer seats must consider a ZEV with a base-model MSRP of less than $45,000 to be eligible for the incentive. For those Canadians looking to buy a larger vehicle of seven or more seats, they must select a model that costs less than $55,000.
“What’s important is that the base price needs to be at $45,000 (MSRP), and if it’s under that we know that the vehicle is eligible. But we know that there are people where, in some cases, they want to add options,” said Garneau. “We don’t want to disqualify them if they add them — but not more than $10,000. In the $45,000 case they can add up to $10,000.”
People purchasing vehicles up to $55,000 can add up to $5,000.
The $5,000 rebate is specifically for the purchase or lease of an eligible battery electric, hydrogen fuel cell, or longer range plug-in hybrid vehicle. For shorter-range plug-in hybrid vehicles, a $2,500 incentive is offered.
The incentives are also stackable with whatever the province (such as Quebec or British Columbia) is already offering in terms of ZEV rebates. But in some cases the list of eligible provincial vehicles may not match the list from the federal government. “Yes, they (the incentives) are stackable,” said Garneau. “The only thing I will say is that the lists of the eligible cars are not identical, but when they are — they are stackable.”
Garneau said there are about twenty cars that are now eligible under the federal program, though he believes some consumers still may not realize how many vehicles are available to them.
The one catch to the ZEV program is that the government is still figuring out how it will approach the reimbursement of the rebates to consumers. Garneau said they will have these details worked out by May 1, in time for the program to roll out.
Canada’s Minister of Transport Marc Garneau provides an example of how to charge a zero-emission vehicle on April 17 in Montreal, Quebec.
