Ontario Cancels Electric Car Incentive Program

JUL 13 2018 BY MARK KANE 56

Ontario’s new government officially – and as expected – ended the cap and trade program, which means the end of the incentives to buy plug-in cars (funded through cap-and-trade proceeds).

The Electric and Hydrogen Vehicle Incentive Program (EHVIP) enabled the purchase of plug-in models up to $14,000 CAD cheaper (≈$10,600). That helped to increase sales in the province and in Canada, but now it will be a hard landing for quite some time.

The cancelation of the subsidies was expected from the new government and maybe it’s the biggest reason why Canada experienced a plug-in sales rush in May and in June.

To not harm the business, incentives will be still eligible for dealer’s inventory and orders placed on or before July 11 (but delivery is required by September 10).

One more bit of bad news is that Electric Vehicle Charging Incentive Program is also canceled. There are 60 days from July 11 to receive incentives on the infrastructure that was purchased and/or installed.

Full press release:

Ontario Ends the Electric and Hydrogen Vehicle and Charging Incentive Programs

July 11, 2018

On July 3, 2018, Ontario cancelled the cap and trade program as part of its commitment to bring gas prices down by 10 cents a litre and help reduce costs for Ontario families and businesses by $1.9 billion dollars per year.

Given the Electric and Hydrogen Vehicle Incentive Program and the Electric Vehicle Charging Incentive Programs are funded through cap-and-trade proceeds, these programs are cancelled.

Applications will be accepted from dealerships, car owners or prospective car owners only if one of the following conditions has been met:

Eligible vehicles that have been delivered to consumers, registered, and plated on or before July 11 will receive the incentive.
Inventory that dealers have on lots or orders made by dealerships with manufacturers on or before July 11, will also be honoured for the incentive provided that the vehicle is delivered to consumers, registered, and plated by September 10.

In addition, the Electric Vehicle Charging Incentive Program is cancelled effective July 11. Charging stations purchased and/or installed before this date will be eligible to receive incentives if the application is submitted within 60 days of July 11.

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56 Comments on "Ontario Cancels Electric Car Incentive Program"

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Big Solar

Maybe they will cancel oil subsidies next.

mxs

Actually … Doug Ford, is a mini Trump who has the Ontario families in mind first. He wants to make Ontario great again … you know? 0.10$ per litre tax break for anyone driving ICE. Apparently he will also get us some better electricity rates as well … the guy is simply magical, just like Trump.

ffbj

Yes, Trump is magical like Rumplestilskin. a horrible dwarf that spins straw into gold and steals children.

William

Maybe next time, you could Lump The Trump, with a different crowd. The “Horrible Dwarf” coalition, doesn’t want to be Lumped and Dumped in the Trumpster!

Will

Lol. Tradue should send the Mounties and arrest Trump looking like Ford for destroying Ontario.

xm

LOL. The only way oil subsidies will be “cancelled” is when we stop using the product.

xm

Gee, Why do Conservatives have such bad economic outcomes? Because they make policy at the AUCTION BLOCK. Backing old industry, that doesn’t innovate means you won’t have the New Innovative Jobs while the Old Jobs Die.
— Economics 201

CDAVIS

@xm said: “Gee, Why do Conservatives have such bad economic outcomes? Because they make policy at the AUCTION BLOCK.”
—————-

The AUCTION BLOCK *equally* applies to both sides of the political divide… unfortunately for the American people.

Like or hate President Trump… to Trump’s credit he is hated equally by the influence peddlers on both sides.

xm

Yeah, Bernie Sanders, Al Gore, Liz Warren. The leaders in the Democratic party don’t put their positions up for auction. They use their brains to determine best policy. But, sure, locally you can buy some.

Will

Pshh they as corrupted too. Obama was non conruptable person in any office

xm

Why have Conservatives Globally gotten stupider over the last 40 years? Koch Money in politics. You don’t need to be smart to take orders. As a citizen you’d better start tracking how policy is not made but Dictated from the rich, by the rich, for the rich.

SparkEV BoltEV

It’s also the liberals that’s gotten stupider over the years. For example, continued funding for “high speed rail” that will be slower than driving for most people. They are dictated from the cronies, by the cronies, for the cronies (aka, socialism). This is why many identify as “classical liberal” to make the distinction from the stupid.

xm

The vast failure of US Republicans in all issues lately make liberals literally 10 times better in economic and tax outcomes. Inflation on the rise, the US Budget Blown up to 20 Trillion deficit, tax policy that keeps the rich richer by doing literally nothing, unaffordable healthcare, unaffordable drugs, unaffordable college, robbery of the poor thru pay-day “loans”, and an SEC literally doing nothing with a gamed trading system.

You literally have to watch Fox News, and only Fox News, to believe Repubs are successful at anything.

Also, note the foolish Trump attack of rich Blue State Republicans with his tax policy, that’s going to be felt pretty soon. Aside from other immoral policy’s like separation of families at the border. How much pain will Repubs inflict on themselves by hiring the incompetent to run this nation?

And the next target is Social Security.

SparkEV BoltEV

If you think Democrats are any better, you are watching too much MSNBC. Obama raised the debt more than anyone else before him and his Obummer care guaranteed profit for insurance companies while accelerating raising health care cost for everyone who pay (ie, direct pay, not taken out of paycheck). He was also the “deporter in chief” which the left wing media and Dumbocrats did not protest. Even now, immigration protest is about Dump, not about inhumane immigration policies that Democrats also support.

Generally, Democrats today suffer from “Trump Derangement Syndrome” where they can’t see their own dirty feet because they are so in love with talking about Dump.

As for Social Security, Bernie Madoff went to jail for doing the same thing that Social Security is doing. You must be those crazy people who chant “free Madoff” if you support Social Security.

menorman

Obama was handed the worst economy in several generations and turned it around. Meanwhile, tRump was handed a galloping economy yet has still managed to raise the deficit and thus debt.

The ACA turned out the way it did because Republicans refused to help craft it even after Obama had pushed for the current model over single-payer as a way to get them some skin in the game. Then, once they took over control of Congress, they’ve literally been attacking its pillars from any angle possible to purposefully drive costs up and make it fail.

There actually were protests against and outrage about Obama’s immigration policies during his time in Office, but since he was mainly focusing on actual violent criminals instead of a sweeping dragnet against all immigrants, the protests weren’t as loud or frequent. Still, it was under Obama that “sanctuary cities” really started becoming a thing. And no, people aren’t protesting because it’s tRump, they’re protesting because his policies are increasingly becoming obviously based on nativist white nationalism and even many Republicans aren’t very support of them.

xm

True, some Christians are now starting to pull away from the Republican party. Even they can’t stomach some much vile policy.

xm

If you’re so worked up about Obama raising the debt, why aren’t you complaining to Trump about it? Obama used the money to pay for food stamps, for WHITE PEOPLE, during the Great Recession. And Repubs tried to kill that spending too. Which would have hurt WHITE PEOPLE.

By you not yelling at your reps you’re just proof what’s left of the Repubs are sheep, that want to be lied to and robbed. Best wishes for you and your family. But, you’re never going to MEGA by voting Republican, you’ll just become poorer.

SparkEV BoltEV

What makes you think I don’t complain about DUMP? You are so brainwashed that you think anyone who doesn’t agree with leftwing propaganda are automatically DUMP supporter. Wake the hell up, because attitude like that is going to get DUMP re-elected. And I’m afraid he will get re-elected, because every article by MSNBC and CNN mention his name, even more than Foxnews.

As for being poorer for voting Republican, you obviously have no clue about history. One obvious example is Reagan breaking stagflation. And when Republicans say stupid thing like yours, you can point to Clinton years as counter example. Take the red pill instead of living in MSNBC fantasy.

xm

Here’s a history lesson. No Republican since Reagan, including Reagan has ever grown the middle class. Roosevelt created the middle class.
Expecting a Republican to do what year after year they fail to do, as some point you have to figure out it’s because they don’t want to grow the middle class, they just want to rob it: Trumps Tax Policy.

So FIx News get’s you all worked up about “liberals”, and then pass laws, that they don’t consider news, that rob you blind. That’s the party you’re endorsing. How many years is it going to take before you figure it out.

Will

First he inherited. You had to have government spending and then he let markets deal after they got healthy. He followed the Romney plan because he thought it would have been compromised between the gop since that was thier plan and a one payer system that democrats wanted but gop obstructed everything he wanted. He was a good president. Presidential. Nothing bad about him. Got the terroist. Got Osama. Economy is all time highs when he left. Saved GM and Chrysler thus saving the Midwest

menorman

The only reason that rail travel is so abysmally slow in this country in the first place is because of the lack of investment to even keep it running competently. So yea, money for “high-speed rail” ends up going to projects that aren’t truly high-speed. At the same time, money that really was going to go for real high-speed projects in Florida, Ohio, and Wisconsin all got rejected by the Republican governors and thus eventually got redirected to projects in Oregon, Washington, Illinois, and of course California. The latter two are definitely faster than driving, the Cascades corridor probably is about equal when accounting for stops and assuming an open freeway.

Will

Yep we know our politics. There’s have been like 3 great Republicans presidents since the 1930s. Ike, Regan, and George HW Bush. They all did something to change America for the better or to save it from ourselves

Will

Where you at s this slow high speed. The Ohio project 3C was never high speed it was to connect the 3 major cities with rail like the Midwest Amtrak corridors and NE Corridor which those trains do go over 150 miles. The Florida network not the one now was supposed to go from Orlando airport to Downtown Tampa Stoping at Downtown Orlando, Disney World and Tampa basically a Tourist train but high speed 225 mph. Texas and California are HSR 225mph. The problem with California is they are to slow and over regulation that China can just plan and build their lines as it takes out time to get out of red tape

Will

High speed rail travels at over 200 mph in a more direct route with far less stops. If driving a car is faster then the rail isn’t high speed, or is poorly implemented.

Ron M

The oil industry has always been greedy. When electric trolley cars were a common site. The bought congressman and or the trolley companies and then had the lines and tracks removed and getting tax breaks and subsides to do it. The Koch Brothers own congress just like Rockefellers and Getty before and yet somehow so many of our citizens support the GOP that wants to limit are choice and continue being slaves to fossil fuels.

mxs

Yep … those Hyundai KONA pre-orders just became 14K more expensive …. tough pill to swallow. But, but … there’s hoping that Hyundai will actually offer some good 3-year leasing deals.

Brian

I for one look forward to the day that EVs thrive without subsidies. We are getting closer, but are not there yet. Ontario’s incentive was extremely high. Almost too high. The solution isn’t to cut it straight out but to phase it out slowly. Didn’t Georgia do the same thing a year or two ago? Look what happened to EV sales there.

Ron M

After 100 years I look forward to when fossil fuels stop getting tax breaks and subsides. If you look at the fracking of shale. This was a 30 year investment made by taxpayers for the oil industry. In he US nuclear plants in Illinois recently received a subside because they couldn’t compete with wind energy and Trump wants to subside coal and nuclear plants on the premise that it’s needed for grid security.

William

Trumps recent Nuclear and Coal handouts, are the latest in taxpayer giveaways to those toxic legacy grid investors, (some Widows and Orphans).

Some of these investors are currently holding the bag, on mostly uncompetitive, and severely underperforming investments. These Nuclear and Coal dying business models, pale in comparison to the market disrupting wind and solar equity market valuations.

So grid stability is another “term” for protecting some vulnerable people, and their equity investments, that will EVentually have their “Kodak Moment”, in the not to distant future.

ffbj

Thermal coal is clearly dying, supplanted mostly by natural gas, wind & solar, and that’s good.
Such things, as you call handouts, a reasonable characterization of such things as softening or removing regulations that guard waterways from coal runoff, and pollution cases in general.
Although it really is more like trying to prop up a leaning tower, as you suggest

Metallurgical coal used to make steel is doing quite well. We have quite a bit of that, too.

Brett

All those Model 3’s getting shipped to Canada? Guess where they were headed….

Good thing a bunch got delivered before the credit got axed, hopefully even more were considered ‘paid’ for, otherwise there’s going to be a lot of pre-order cancellations coming out of Ontario. $14,000 was a very generous incentive.

G2

They can be re-routed to Quebec and BC😀

A Gordon

Stupid supposition begets a stupid statement. How do you know that “there’s going to be a lot of pre-order cancellations coming out of Ontario”? Sheesh!

Will

14k CAD is a colossal incentive is why we know.

Marc

I ordered my Chevy Bolt on June 9th. If I don’t get it before the September 10th cut-off, I will cancel my order. My local GM dealership told me everyone has been scrambling for Bolts and Volts since the (Ontario) election. GM dealerships in Ontario simply can’t supply demand.

After the anti-environment Conservatives got elected, the writing was on the wall… I was hoping those who ordered before the rebate’s cancellation would get an extended sunset: this is what we got, but it’s a short one… 58 days.

IIRC, there was an InsideEVs article from 2-3 wks ago stating that Canadian 2019 Bolt orders were processed before everybody else: I hope this is related to GM calculating that could lose many customers in Ontario… and that they could soon surpass 200k EV sales in the US.

bro1999

The fact Ontarians voted another Ford into office….nuff said.

Mark.ca

We are not in position to teach any lessons… unfortunately.

Brett

The majority of people didn’t actually. There is a difference between vote for someone and voting against someone else. This was the latter, most people were voting away from the Liberal party that had been in power for almost 15 years.

Also, thanks to our First past the Post parliamentary system, he got voted a majority control of the House of Commons with only around 40% of the popular vote. If the two left-centre parties in the province had formed a coalition, they would have won by a landslide.

Erwin

We feel free when we escape, even if it be from the frying pan into the fire. – Eric Hoffer

Spoonman.

It’ll be interesting how many EVs get moved this year in Ontario. One would hope that Model 3s at least are still in demand.

Paulp

Not as many as there could have been (other than the Model 3 maybe). GM and Nissan were to stupid to ship their EVs north of the border. There are ZERO Leafs or Bolts in dealerships and if you placed an order just before the end of the subsidy (on July 11th), you aren’t going to get your car by September 10th)

Clive

Way to show the world how stupid the Canadaian goverment is.

G2

‘Ontario’ isn’t ‘Canada’ but just one part of it. I hope you knew that Clive.

Nix

The incentive was too big, and it made itself a target due to the size of the incentive. A $4,000 CAD incentive would have likely not drawn this type of attention and backlash as $14,000 CAD incentive.

The current legislation in the US to extend federal incentives should reflect this reality. The bill to re-write the tax incentive to make it a point of purchase credit to reduce the price should also include cutting the dollar value of the incentive to $6,000.

Depending on the state, part of the reduction in incentive could be made up for in lower state licensing fees anyways, because the amount of state taxes owed would be based on the price being $6,000 dollars less with the purchase credit.

If there is any chance at fixing the incentive with the help of R’s from car manufacturing states, there has to be some give and take.

LS

100% agreed. I think the best case for the US incentive is to actually just remove the vendor specific nature of it. Keep it the same (200,000 per manufacturer) but put them all in the pool (say the top 10 manufacturers) and allow other manufacturers to claim it. Then it rewards the leaders while punishing the laggards instead of punishing the leaders as it currently is. It also doesn’t add to the cost because the total commitment stays the same and favours US companies (GM and Tesla) which should be an easier sell for the Republicans.

pk

Keep in mind that the 14,000 was after taxes. The cheapest LR M3 is 64,100. So net after HST would have been 64,100+8,333-14,000 = 58,433
So for someone considering the M3 it’s not as much of an impact as someone who was going to buy the lowest trim Leaf. 36,398 + 4732 – 14,000 = 27,130

Tony

It was capped at 33% MSRP so the low end volt didn’t get the full credit so the leaf doesn’t get the full $14k either. And there were other variables in the formula such as 4 vs 5 seats.

Paulp

“To not harm the business, incentives will be still eligible for dealer’s inventory and orders placed on or before July 11 (but delivery is required by September 10).”
Funny, dealers have ZERO inventory. All EVs had to be ordered at full MSRP with delivery in 2 to 6 months. Without the incentives, sales will drop to nothing.

Without the cap and trade program, the federal government will have to step in and impose a carbon tax with the money going to the federal coffers… really stupid.

Paul K

I didn’t really want to replace my existing 2016 30kwh Leaf until at least 2020 but with a change of gov’t looming the temptation was too great to try to snag a new Leaf with a 40kwh battery, so I placed a deposit on a new Leaf in late April. This isn’t going to happen. I have mixed feelings about this as I like my existing Leaf. The more the styling and battery trolls denounced it the more I liked it. It’s doing a great job for me and my adult daughter will be overjoyed to buy it from me in 2020 at whatever residual trade in value it will have. So “ugly bugly” and I will enjoy another two years together.

Incentives or no I am now hooked. If need be I will buy a 60kwh vehicle in 2020 with no incentives. At my age it could be the last vehicle I own before they take away my driver’s license so I might as well splurge.

Erwin

Likely we are the last generation to own more than one car in their lifetime.

Bustya

It’s a good thing Rob had a brother to keep all the corruption going. Anyways, it’s open season to import guns and drugs into Canada.

abc123

So who’s going to make sure that the gas prices go down by $0.10/litre? My greedy self says that the companies benefiting from this elimination of cap and trade regulation will not be passing the savings onto the consumer.

Bill Howland
I was the first to report here that the C$14,000 EV Credit was going to be completely cancelled, as well as what the primary EV group in Ontario ongoing strategy would be. Almost needless to say, it will be SIGNIFICANTLY toned down, only even asking for a few thousand dollars, and completely eliminating the credit for any car stickered over C$50,000, to avoid this being seen as a ‘Benefit for Rich EV owners’. I’ve repeatedly stated in the past, this is the BIG DANGER of asking for too much and getting it. The current conservative gov’t got voted into the Province due to the belief by ‘Work a day’ average Canadians living in Ontario (the most populous – 15% of all Canadians live in the environs of Toronto), that ‘Rich EV Drivers’ are being given LARGESS for over C$100,000 vehicles, when the work-a-day Canadians are being burdened by heavy taxes as it is, and EV penetration in general is 1.5% whereas the VAST MAJORITY (98.5%) get no benefit when buying a Non-ev. This, as well as the former C$0.80 per kwh (!!!!!!!) given to early solar adopters. Solar installations were different in Canada. Forget Net Metering, they were SUCH A… Read more »
Will

Ontario will suffer the wrath of Ford and Trump. Tradue should have his party do a nationwide incentive program for EVs

Tony

Maybe the Fed will do that to withhold money from Ontario and transfer carbon tax money directly to the consumer. I guess will see when election time comes around.

Courtney vegan

Car dealers are celebrating. They lose money on EVs because of no oil change, transmission and other ice parts need fixing. No wonder you see no EVs on dealer lots. It’s a good day for ice car companies.