Canada's Incentives For Zero-Emission Vehicles Program That Gives Up To $5K Could Be Extended
The federal government plans to ban the sale of new gas-powered cars by 2035.
The Incentives for Zero-Emission Vehicles (iZEV) program that Canada has could be extended, the federal government announced.
In the federal Budget 2022 that was released on April 7, the government proposed measures to address climate change and to reduce emissions from transportation by making zero-emission vehicles more affordable for Canadians.
"We need to fight climate change so that we can leave our children with a livable planet," Finance Minister and Deputy Prime Minister Chrystia Freeland said on Twitter after presenting the budget.
To reduce emissions and make zero-emission vehicles more affordable, the federal government has proposed $1.7 billion over five years to extend the iZEV program until March 2025.
The hope is that the extended program, which gives rebates of up to $5,000, will encourage more Canadians to get buy zero-emission vehicles.
It was also proposed that the program's eligibility will also be broadened to include the purchase of more vehicle models like vans, trucks and SUVs.
The federal government also plans to introduce funding to build a national network of electric vehicle charging stations and to spend $547.5 million over four years to launch a new purchase incentive program for medium- and heavy-duty ZEVs for business.
Budget 2022 also laid out the federal government's plan to ban the sale of new gas-powered cars so that all new light-duty cars and passenger trucks sold in the country are zero-emission.
A sales mandate is expected to be put into place to ensure at least 20% of new light-duty vehicle sales will be zero-emission vehicles by 2026, at least 60% by 2030 and then 100% by 2035.
