Feds no longer offering $5K incentive on electric cars after money runs out

The federal government is no longer offering its $5,000 incentive for buying and leasing electric vehicles.

Transport Canada has updated its website to explain that the cash provided for the iZEV Program has been “fully exhausted.”

It was scheduled to conclude either on March 31 or when the money ran out.

“Due to the popularity and increased demand for the Program in recent years, the funds allocated to support the iZEV Program have been completely committed ahead of schedule,” Transport Canada explained.

“This surge in interest has led to a faster depletion of resources than anticipated, necessitating the pause of the iZEV Program earlier than March 31, 2025.”

The British Columbia rebate, however, has not been affected, since it is a provincial program.

In a news release, Transport Canada said more than 546,000 vehicles have been bought or leased with the incentive since it was launched in 2019.

New zero-emissions vehicles composed 16.5 per cent of market share in the last three months of 2024, according to the department.

The federal government has mandated that 20 per cent of all new vehicles sold in Canada must be electric by 2026. By 2035, 100 per cent must be electric.

“I am delighted to see the success of the iZEV Program,” Minister of Transport Anita Anad said.

“Since 2015, our Government has been committed to building a greener economy and combatting climate change. We will continue to engage with industry, environmental groups, and across jurisdictions to foster collaboration in decarbonizing the country's transportation sector and becoming a global leader in zero-emission vehicles.”