The federal government offers up to $2,500 in incentives for eligible PHEVs. Incentives help offset the cost of purchasing or leasing a PHEV.
Plug-in hybrids (PHEVs) have two power sources, a battery and an engine. PHEVs have a 30-60km short electric range, depending on the vehicle. Even though the push is more towards purchasing or leasing all-electric cars, PHEVs are still a great option. The federal government offers up to $2,500 for eligible PHEVs, which is less than what is offered for electric vehicles ($5,000). Electric vehicle incentives help offset the cost of purchasing or leasing a plug-in hybrid. Unfortunately, not as many provinces offer incentives for PHEVs. British Columbia, New Brunswick, Nova Scotia, Prince Edward Island, and Quebec offer PHEV incentives. We broke down every EV incentive available across Canada in a previous article. This article explores which PHEVs are eligible for provincial and federal electric vehicle incentive programs.
To encourage the purchase or lease of PHEVs, the Canadian Federal Government offers up to $2,500 for eligible vehicles. The PHEV incentive is a part of the Incentives for Zero-Emission Vehicles Program (iZEV). To receive the iZEV incentive, you must purchase or lease an eligible PHEV. The eligible PHEVs are listed below.
The government also offers a 100% tax-write-off for businesses that purchase eligible electric vehicles. The write-off applies to approved plug-in hybrids and all-electric cars purchased between March 19, 2019, to January 1, 2024. The 100% write-off can be used to $55,000 of the purchase price, plus the federal and provincial sales tax. Businesses can not receive the iZEV incentive and the 100% write-off, only one or the other.
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Not every province offers incentives for the purchase or lease of PHEVs. Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador do not currently offer incentives to purchase or lease a PHEV.
British Columbia, New Brunswick, Nova Scotia, and Prince Edward Island all offer PHEV incentives and use the federal iZEV program’s list of eligible vehicles. Provincial PHEV incentive amounts vary by province and can be stacked with federal incentives.
Provincial incentive amounts for eligible PHEVs:
Quebec offers incentives for the same vehicles as the iZEV program but includes a few other makes and models. In Quebec, you can receive up to $8,000 on eligible plug-in hybrids.
Additionally, the BC government offers a PST tax exemption for used PHEVs that have driven at least 6,000kms and have a purchase price of $55,000-$75,000.
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Not sure if a plug-in hybrid is for you? Continue your search for the perfect electric vehicle with our guide to electric vehicle maintenance and top lists of electric SUVs, trucks, and sedans.
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