More EV models to qualify for rebates

• The federal government is expanding the number of electric vehicles that qualify for the purchase rebate as it makes good on its promise to include some of the new SUVS and pickups arriving in the electric vehicle market.

Transport Minister Omar Alghabra said Friday about four in five Canadians are interested in making their next vehicle purchase an electric model but because the purchase prices are still a little higher than conventional gasoline cars, they need a little help to nudge them along.

“We know that the future of our transportation sector has to be green,” he said. “And the future is zero-emission vehicles.”

Later this year, the Liberals intend to mandate that by 2026 one-fifth of vehicles sold must be electric. Half of sales must be electric by 2030, and by 2035, no new gas-powered vehicles will be allowed.

In 2021, about one in 20 new vehicles was electric.

The recent budget added another $1.7 billion to the popular incentives for zero-emissions vehicles program. Since 2019, the program has doled out more than $611 million in rebates to more than 141,000 car buyers.

Initially, the maximum purchase price of a vehicle to qualify was $45,000 and up to $55,000 with options. Vehicles with at least seven seats could qualify with a maximum price of $55,000.

As of Monday, the maximum price for cars will rise to $55,000 ($65,000 with options), and for trucks, SUVS and vans to $60,000 ($70,000 with options).

Battery-electric, plug-in hybrid and fuel-cell vehicles that can travel at least 50 kilometres on a single charge will qualify for $5,000. Those that get a shorter range can get $2,500. Previously, only fully electric vehicles could get the maximum amount, while plug-in hybrids got the smaller rebate.

The changes added 14 new vehicles to the list, and bumped four plug-in hybrids from the $2,500 rebate to $5,000.

Until recently, almost all electric vehicles were small passenger cars or small crossover SUVS. There are more than a dozen pickups and bigger electric SUVS arriving on the market in the next two years.