As of January 12, 2025, the iZEV incentive program has run out of funds. The Government of Canada has posted the following update on its website:
The Incentives for Zero-Emission Vehicles (iZEV) Program funds have been fully committed. Consequently, the iZEV Program has now officially paused. We encourage you to visit our Frequently Asked Questions as they have been updated with regards to the Program’s pause. For additional questions, please write to [email protected].
According to the updated FAQ, the program officially paused on January 12, 2025:
The iZEV Program officially paused on January 12, 2025, as the allocated funds were fully committed.
All authorized dealers and sellers enrolled in the Program have been formally notified of the Program’s pause.
While the government refers to this as a “pause,” they have provided no details about when—or if—the program might restart:
How long is the Program pause expected to last?
Any updates to the Program will be posted on the Transport Canada website, and all authorized dealers and sellers enrolled in the Program will be notified.
The Uncertain Future of the iZEV Program
The Canadian Parliament is currently prorogued, making it unlikely that iZEV program funding will be replenished before Parliament resumes. Parliament is expected to reconvene on March 24, 2025. However, until a new federal budget is passed, funding for the program remains uncertain.
Adding to the complexity, 2025 is an election year in Canada, which could further influence the government’s ability to allocate funds for iZEV.
Impact on EV Sales in Canada
In the short term, the pause is expected to negatively affect both EV affordability and sales in Canada. Electric vehicle sales experienced significant growth in 2024, fueled by the introduction of new EV models like the Chevrolet Equinox EV. However, with the suspension of the $5,000 rebate, the momentum in EV adoption may slow.
Hopefully, this pause does not become permanent. For EV adoption to continue growing, support both from government incentives and the increasing availability of affordable models is needed.