Ontario Reinstates $75,000 Price Cap For $14,000 EV Incentives

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MAR 21 2018 BY STEVEN LOVEDAY 12

Ontario, Canada recently updated its EV incentive program without a publicized announcement, and now it reverts back to excluding the Tesla Model S and X.

Ontario’s prior EV incentive rules excluded vehicles with MSRPs ranging from $75,000 to $150,000 from receiving the top $14,000 rebate. This all changed last February and made it so that the Tesla Model S and X could fully benefit. Needless to say, S and X sales in the area skyrocketed as a result.

BACKGROUND: Tesla Model S & X Now Eligible For $14,000 Rebate In Ontario

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Tesla Model 3 (Image Credit: Tom Moloughney/InsideEVs)

Now, it seems the province has once again reconsidered. After running the incentive without the cap for a little over one year, a similar rule was put back in place just a few days ago.

The old setup – prior to the February 2017 change –  allowed those high-priced EVs to benefit from a $3,000 incentive. However, the new rule states that if a PHEV or BEV costs over $75,000, there will be no rebate whatsoever.

We can only assume that the Tesla Model 3 will not be impacted by this rule. However, if you look at the Ontario website (link below), Tesla isn’t even listed as a company. This is almost certainly due to the fact that the Model 3 is not yet for sale in the province.

If the rule doesn’t change in the near future, we expect to see the Model 3 added to the list of eligible vehicles once deliveries in the area begin.

According to the Ontario Ministry of Transportation (direct from the website):

On March 9, 2018, the Electric Vehicle Incentive Program (EVIP) became the Electric and Hydrogen Vehicle Incentive Program, with the following changes:

  • Incentives of up to $14,000 will be provided for eligible Hydrogen Fuel Cell Vehicles (HFCVs);
  • Incentives for eligible battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are now determined based on each vehicle’s all-electric range and seating capacity. The updated incentives vary from $7,000 to $14,000;
  • Incentives will no longer be provided for PHEVs or BEVs with a Manufacturer’s Suggested Retail Price (MSRP) of $75,000 or more; and
  • Incentives will no longer be provided for PHEVs or BEVs leased for less than three years.

Note that incentives will be provided under the previous EVIP program for EVs ordered prior to March 9, 2018, provided that the EV is delivered and that the application is submitted by September 7, 2018.

Source: Ontario via Electrek

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12 Comments on "Ontario Reinstates $75,000 Price Cap For $14,000 EV Incentives"

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They should go step further and give 200% incentive to cars under 30k and only give 50% to those between 40k and 75k.
There needs to be some incentive for automakers to reach down the affordability ladder. People buying a model S/X or an iPace or an eTron or an iX3 don’t really need a subsidy.

The larger cars produce MORE Pollution, they’re heavier, with massive V6 or V8 engines ( and Diesel ), and they have more horsepower, which their owners use.

You want these large Jags and BMW’s to switch to Electric Jags and BMW’s or Tesla’s. Because NO ONE is getting EPA gas mileage with these vehicles.

They dont need the subsidy. Its like giving oil companies billions in subsides. If the want an ev buy cheap one

Countries that want to deal with that problem impose hefty fines for such vehicles based on pollution.

You don’t have the guts to go down that route, so instead, you want to take public dollars and try to appease such drivers to buy fancy toys. No thank you.

There are no EVs < $30K in Canada. The Ioniq and the 2018 Leaf are both in the range of $36K in Canada.

The limit should be $45k and under.

There were only 2 production BEVs when the US incentive system went into place. The point of such incentives is to create markets that aren’t able to form by themselves.

Simply ban all cars >2tons for private use. Nobody really needs such a heavy car or the functions implemented, that caused the weight. Nature is more important than egoistic luxury “needs”.
But maybe this is only the view of an european…

From article: “Incentives of up to $14,000 will be provided for eligible Hydrogen Fuel Cell Vehicles (HFCVs)… Incentives will no longer be provided for PHEVs or BEVs with a Manufacturer’s Suggested Retail Price (MSRP) of $75,000 or more”
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So for cars priced over $75,000 Ontario wants to encourage more HFCVs adoption and less BEV adoption? Seems messed up to me.

Also, it’s no secret that those consumers buying higher priced BEVs greatly help car makers afford R&D to make lower priced BEVs… and much of the tech in the higher priced BEVs works its way down to the lower priced BEVs. So if Ontario’s object is to encourage more lower priced BEVs to be available and sold they should logically extend the incentive to include the higher priced BEVs.

Toyota has a plant in ON. So the politicians do all they can for Toyota, the only manufacturer who has a presence in Canada that is heavily vested in hydrogen.

Technically Toyota has two factories in Ontario (Woodstock and Cambridge).

GM has three factories (Oshawa, Ingersoll and St. Catherines)

Ford has three factories (Oakville and two in Windsor)

FCA has two factories (Brampton and Windsor)

Honda has one large factory (Alliston)

There’s an election coming up this summer, so this is probably the government protecting themselves politically.

And I don’t think the hydrogen incentives will really matter, unless there’s a massive commitment to infrastructure.