Starting Feb. 16, Canadians will be able to qualify for the recently announced federal consumer rebates of up to $5,000 on the purchase or lease of some new electric or plug-in hybrid electric vehicles.
The federal government made the announcement Tuesday in Ottawa, with Transport Minister Steve MacKinnon saying the rebates will be processed at the point of sale.
“These will be point-of-sale incentives built into the transaction through a dealership. That will make these incentives easier to access with less paperwork or process,” said MacKinnon.
“What vehicles are eligible? Well, we’re talking about new battery electric and fuel cell electric vehicles sold from Feb. 16, 2026.”
Prime Minister Mark Carney announced last week a new five-point strategy to “transform” the automotive industry in Canada.
The plan included offering consumer incentives he said will make it more affordable for Canadians to choose an electric vehicle, or EV, over traditional models with only a combustion engine. He also said part of the strategy includes expanding Canada’s charging station infrastructure.
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MacKinnon said Tuesday that to qualify for the full $5,000 rebate, a vehicle must be powered solely by an onboard battery. This also includes fuel cell electric vehicles, which are powered by compressed hydrogen that can be purchased from specialized fuel stations.
Purchasing a plug-in hybrid electric vehicle may qualify for up to $2,500 under these new incentives.
Natural Resources Canada says PHEVs are hybrids, meaning they still use gasoline along with an electric motor, and the electric battery can be powered mainly through an external charger.
In some versions, the gas engine in these vehicles may act solely as a backup power source for the electric motor, while in other types, the gas engine is connected to the wheels and may be used to provide more driving power when needed.
The incentives will apply for vehicles with a purchase price of up to $50,000, unless those models are manufactured in Canada — in which case the price cap does not apply.
Canada is going to need more charging stations to adapt to a spike in electric vehicle sales, which ministers also detailed Tuesday.
“Through the Zero Emission Vehicle Infrastructure Program, we are investing more than $84 million in 122 projects across this country that will install more than 8,000 new charging stations for electric vehicles from coast to coast to coast,” said Tim Hodgson, minister of energy and natural resources.
Sales of electric vehicles in Canada have been on the decline in recent years, according to Statistics Canada, with several survey reports suggesting the two main reasons Canadians may be reluctant to switch to these options are the perceived higher cost and the lack of available charging stations.
Carney said last week that boosting electric vehicle sales in Canada will help reduce emissions in Canada while also supporting the Canadian automotive sector, which has been hit hard by U.S. tariffs.
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