Ontario, Canada Boosts Electric Vehicle Incentive Program Up To $14,000 (Update)

FEB 10 2016 BY JAY COLE 55

Ontario Canada Takes New Leadership Position In The EV Incentive Game

Ontario Canada Takes New Leadership Position In The EV Incentive Game

Ontario Premier Kathleen Wynne Announces Huge Boost To EV Program

Ontario Premier Kathleen Wynne Announces Huge Boost To EV Program

Rest of the world, be jealous.  As part of a new Climate Change Strategy, the province of Ontario, Canada has just become an unexpected leader for offering plug-in vehicle incentives.

The new incentive program does away with the old system that paid out anywhere from $5,000 to $8,500, to a new base level of $6,000 to $10,000.

The rebate applies equally to both plug-in hybrids and all-electric vehicles.

Some new bullet points on the program:

  • Increase the current incentive range for EVs from $5,000 – $8,500 to $6,000 – $10,000
  • Provide an opportunity to receive an additional $3,000 incentive for vehicles with larger battery capacities
  • Provide an additional $1,000 incentive for vehicles with five or more seats
  • Continue to provide incentives linked to battery capacity of more than 5 kilowatt-hours

Unlike in the US, Ontarians get rebate cheques in the mail after making a purchase (usually within a couple weeks), not just tax credits to be used against future tax liability.

Update (March 18th):  MTO has adjusted the rebate amounts to reflect the starting MSRPs of various trim levels – meaning more dollars are available the more options are picked up.  The new/complete list is available here.

Tesla Model S

Some EVs, Like The Tesla Model S Had Its Incentive Reduced To $3,000

As part of the new program, there is a “Tesla clause” to remove a large incentive on what is deemed luxury purchases.

The rebate program gives out a maximum of $3,000 for vehicles ranging from $75,000 to $150,000.  The base Model S 70D in Canada retails from $101,900 ($73,000 USD).

Models to net the greatest advantage immediately are the likes of the Nissan LEAF which retails from $32,698 ($23,500 USD), which qualifies for $9,600

The Chevrolet Volt from $40,090 ($28,700 USD) receives a massive $11,817, while the BMW i3 (both BEV and REx) somehow qualifies for $13,000.

But perhaps the most interesting proposition in conjunction with the Ontario rebate is the new Audi A3 e-tron, which has curiously just been priced lower than the Volt in Canada, at $39,200 ($27,998 USD), it receives $8,095 – despite only a 8.8 kWh battery.

Already Priced Aggressively In Canada, The Audi A3 Sportback e-tron Looks Like An Even Better Deal Today

Already Priced Aggressively In Canada, The Audi A3 Sportback e-tron Looks Like An Even Better Deal Today

“With a growing population and expanding urban regions, transportation emissions pose one of our province’s greatest challenges in achieving our ambitious greenhouse gas pollution reduction targets. By making it easier for people to switch to an electric vehicle, we are taking an important step in our fight against climate change while ensuring our province remains productive and efficient.” – Kathleen Wynne, Premier of Ontario

A rebate of up to $1,000 to be used against the purchase and installation of charging units for residential or commercial applications is also available.

Here is the initial list of eligible EVs.  One might notice there is some odd discrepancies between each EVs rebate amount (such as why the Volt nets so much more rebate cash than many longer range all-electric cars).  The reason for this is actually due to an incentive cap of 30%.

Says the MTO on the subject:

“The total value of the incentives cannot exceed 30% of the Manufacturer’s Suggested Retail Price (MSRP). The incentive value will be calculated based on the MSRP on date of the purchase or lease.”

New Rebate Amounts For All-Electric Vehicles In Ontario (click to enlarge)

New Rebate Amounts For All-Electric Vehicles In Ontario (click to enlarge)

New Rebate Amounts For All-Electric Vehicles In Ontario (click to enlarge)

New Rebate Amounts For All-Electric Vehicles In Ontario (click to enlarge)

Ontario had originally initiated this program in 2010, and to date, had given out ~4,800 incentive rebates on plug-ins (out of ~6,000 on the road through the end of January 2016), and 1,100 residential charging units.  The “Green License Plate” program, enabling EVs to use HOV lanes remains unchanged.

Nothing Like Getting A Cheque In The Mail

Nothing like getting a cheque in the mail a few weeks after buying an electric vehicle! (old max rebate of $8,500 shown)

Full details/qualification specifics on the program will be released shortly. (Ontario.ca)

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55 Comments on "Ontario, Canada Boosts Electric Vehicle Incentive Program Up To $14,000 (Update)"

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Exciting! Just right for Bolt and Tesla Model 3! And, $10,000 was the stated plan back in 2008, which got cut to the $8,500 amount when it came to be. So, back on track.

It’s good, but,we still have to pay the 13% Tax on the Full Gross mount of the purchase price & then we get back the 10grand ..so $10,000 X 13%is $1,300..so are actually Getting $8,700 & Not $10,000.. in CND$ which is aprox. $6200 in USD$$…could be better could be worse. Better than nothing. We’ll take it!

3 year lease gets you the full amount though and you only pay taxes on the leased amount.
I’m looking forward to the model 3 reveal and what Nissan has up their sleeve. Exciting times.

Good point, good to know!

Premier Wynne’s announcement is a joke! Clearly they crafted either an anit-Tesla bill or just plain stupid legislation. They give a 100 kilometre range car the full $10,000 rebate (30% of the cost) but a car made in America with 4 times the range and seating for 5 adults + $3,000 (3% of the cost). Their excuse is its a luxury car ! I will be writing to her directly, my MLA directly and the Prim Minister as well. Not surprised Permier Wynn would act in such an ignorant way!

A minimum of 5kWh doesn’t really cut it.
As the vehicles evolve, they need to step up the minimum requirements too.
Vehicles like the plug in Prius have such a small effect over a regular Prius.
The point of the incentive should be to encourage those that can actually displace a significant amount of fuel use/pollution generation.
These are also the ones that cost more, and would need incentive to purchase.

Also interesting that they didn’t switch to usable design capacity.
As we know, the flaw before was volt claiming full rebate even though you could only ever use 10-11kWh.

“A minimum of 5kWh doesn’t really cut it”

My family could do 97% of our driving on electric only with a 5kwh phev. Having a larger battery is not necessarily better for the environment, thats the point in the end right.

Keep in mind a 5kWh battery means probably 3kWh usable. Does that change your answer?
If no, then your family is negligible in terms of environmental effect, which is the point of the incentives.

The effect of changing a 20k/yr commute to electric may only take 2x the battery size, but gives, say, 4x more benefit for the incentive dollars. And those are the people that need to be targeted. Very low mileage users don’t have a large effect on air pollution, it’s the daily commuters that make a difference.

Unless you mean you’re charging several times a day in order to make use of such a tiny battery. Such a small battery which also means you cannot drive all electric all the time as the peak power output of the pack is low.

It’s not really a “Tesla clause.” It’s a luxury vehicle clause and it just so happens that Tesla only makes luxury vehicles at the moment. The Model 3 will qualify.

Other vehicles that will see their rebate capped at $3k include the Cadillac ELR and CT6 PHEV, Volvo XC90, Porsche Panamera, etc.

I have no problem with that. After all, you’re still getting a $3000 rebate on luxury goods.

No, you are getting $3000CDN for buying an EV over gas… An Audi R8 is quite expensive, but no rebate.

Yes, you’re getting a rebate because it’s a plug-in, and it’s also a luxury car. Absolutely nobody needs a 5-seat passenger car that’s more than $75k, but you’re still getting $3000. It’s a good deal.

Marcel Guldemond (@marcel_g)

this is good news, now if they could just get their act together with respect to having DC fast chargers along our main highways and travel routes, that would be great…

It would sure would be nice if the federal government would take over offering incentives. It’s no fun living in a province with no incentives and knowing that the price has been set nationally taking the availability of incentives in some provinces into account. In fact most EVs are not even sold or serviced outside the three provinces with incentives.

The HOV lane program still expires in June. So what’s the point in getting the Green Vehicle plate. I guess my old custom plates will go on the Leaf once the program is done.

It doesn’t say how big the batteries have to be for the full $13k but I suspect it’s going to be over 30 kWh.

The green plate HOV has been extended every year. They just aren’t committing to leaving it open-ended/forever.
It was originally due to expire in 2015. Now 2016, and probably soon extended to 2017.. etc.

Yes, I’m keeping my fingers crossed 🙂 My commute is so much better with the HOV.

Announcement claims the HOV access will continue but with little details.

Five seats…the pro-life rebate.

I hope other provinces and the Canadian federal gov’t are going to do something similar. So far there’s no incentive if you live in Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, PEI, Newfoundland/Labrador, Nunavut, Yukon or NWT.

Of course, Alberta does not pay provincial sales tax, just the 5% federal GST, on new vehicles. So they have a fairly similar deal for ALL car purchases, new or used. Not a Green Car incentive though.

Quote “Unlike in the US, Ontarians get rebate cheques in the mail after making a purchase (usually within a couple weeks), not just tax credits to be used against future tax liability.”

While this is true. Another benefit is that dealers in Ontario can apply the rebate at point of sale and the dealer is allowed to apply for the rebate on the customers behalf. This allows the rebate to be worked into the financing at point of sale.

That’s great to hear that you can assign the rebate to the dealer directly, will save some money on % interest if you’re leasing. I just wish they wouldn’t be punishing people who need a 7 seater safe SUV for their families because of “Tesla”. What I mean where did they get this $75k number from? Many Teslas start close to $100k, don’t take away rebate from someone who wants to buy a Volvo XC90 T8 🙁 There are barely any if any PHEVs that seat 7 people that are as safe as Volvo is. Guess I know who I’m not voting for next election!

Who are EV friendly/educated dealers in GTA area? An incentive program is one thing, but good dealer network/repair shops is another.

That’s it .. I’m moving to Toronto!

There appears to be some confusion and conflicting media reports of the maximum incentive actually being $14,000
Up to $10,000 then the $3,000 and $1,000 extras, rather than the $3,000 and $1,000 extras being on top of the $6,000 base

In the market now for a new car and strongly considering an EV.
I’m hoping they get the full details out soon and of course when it’ll take affect.
I don’t want to miss out on what could be an increased rebate.

Bought my second Volt in early January and got $8500 back. Is the new offer retroactive?

Yea it is retroactive to Jan 1 2016

It makes no sense

Nissan Leaf (30KWh , 5 seats) – 9600 incentives. That means the basic incentive is only 5600 (9600 – 1000 for 5 seats and 3000 for extra battery)

BMW i3 (22KWh and 4 seats only – 13000CAD – so full 10000 and 3000 for battery – So I guess Nissan with 30KWh should get 3000 for battery too – that is why the calculation above.

I like the incentives, but it should be transparent – otherwise I feel that BMW and Chevy has better lobbing.

I am hopping it is mistake and Nissan Leaf should be 9600 + 3000 + 1000 = 13600

Also what happens if my 2017 Volvo XC90 T8 doesn’t arrive within the 6 months that you are supposed to apply for the rebate because the T8’s are back ordered like the 2016 were due to very high demand?? Can you get an extension for waiting an extra month or two?? I really hope they allow this because I have a strong feeling that my T8 will not be here within 6 months 🙁 Thx,

from the FAQ. it would appear that the list of vehicles is wrong.

Q1: What changes have been made to the Electric Vehicle Incentive Program?

The Province has introduced a new, modernized Electric Vehicle Incentive Program to help reduce greenhouse gas pollution by making it easier for people to switch to an electric vehicle (EV). The new program will:

increase the current incentive range for electric vehicles from $5,000 – $8,500 to $6,000 – $10,000

provide incentives linked to battery capacity ranging from 5 to 16 kilowatt-hours

provide an opportunity to receive an additional $3,000 incentive for vehicles with a battery larger than 16 kilowatt-hours

provide an additional $1,000 for vehicles with five or more seats

This should give the all Leaf vehicles $14,000 ????

cap incentives for vehicles priced from $75,000 to $150,000 at $3,000

$9,600 for leaf would either mean that
– Leaf did not receive the $3,000 incentive for battery larger than 16KWh and the $1,000 incentive for 5 seats
– or government lowered the current incentive for Leaf from $8,500 to $5,600

On the other hand the incentive for KIA Soul EV makes no sense either. The car is 5 seater with 27KWh – so $10,500 incentive, if we deduct the $3,000 and $1,000 we end up with $6,500.

This is typical government – now we will for half a year try analyze what exactly they want to do here, and when and how we can apply.
No car dealer will commit to processing the incentive, so either me as a buyer will take the risk to calculate the incentive into the financing and cover the incentives in short term on my own hoping that the incentives arrives.
Or I just finance the full price, and when incentive arrives I will be happy that I have extra money.

Government should understand that some of us have to or like to plan the financing – we cannot just declare “deficit” and continue with our life as nothing happened.

Has anyone taken into account that the money given by the Provincial government will be made known to the Federal government and at the end of the year will be counted as income to your income tax which you will have to add to your income and pay taxes on. As well you are taxed on the full amount of the sale and then rebated which knocks off another 1300. This deal is not looking so great when you see all the tricks the government has up their sleeve

I don’t think that’s correct but I’m not 100% sure. What if you assign the rebate directly to the dealer? Then that won’t count as income but you still received the full rebate.

I really wish they would hurry up and announce the rebate for the Volvo XC90 T8! It’s taking them foreeeeeeever lol Last time I spoke with the Ministry they said they were in discussions with Volvo about how to take advantage of the new rebate by possibly adjusting/lowering their MSRP 🙂 I really hope they do come to that agreement because so far this is the only PHEV SUV that’s a 7 seater and would not be fair to lose such a big rebate!