Anybody having a globe and mail subscription can share the article for the $5K rebate in the March 19, 2019 budget.
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Federal EV coming this budget 2019
- Thread starter Jctin
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No, but you can read it by viewing the page source...
Justin Tang/The Canadian Press
The federal government’s pre-election budget is expected to include subsidies for Canadians to purchase electric cars as part of Ottawa’s long-promised commitment to adopt a zero-emission vehicle strategy to reduce greenhouse-gas emissions.
Senior government officials confirmed to The Globe and Mail that next week’s budget will take action based on recommendations from an advisory council, which called for subsidies of up to $5,000 toward the purchase of an electric vehicle (EV) or plug-in hybrid, as well as additional funding for EV charging stations. Environment and Climate Change Minister Catherine McKenna released the council’s report in Montreal on Thursday, saying the government is committed to increasing the availability of lower-emission transportation.
The officials, who were granted anonymity because they were not authorized to speak publicly, declined to confirm details such as the precise size of any federal incentive. But one source said the government would not support tax breaks that apply to the purchase of the most expensive electric vehicles, which led to criticism of Ontario’s former incentive program.
The council recommended that any incentive be short-lived to account for expectations that the cost of electric cars will soon be more competitive with traditional vehicles. Currently, only Quebec and British Columbia offer EV subsidies; the Ontario government cancelled that province’s subsidy program last year. EVs run on battery only and are considered zero-emission vehicles, while the plug-in hybrids have a back-up gasoline engine that takes over when the battery runs down.
In a report to Ms. McKenna and Finance Minister Bill Morneau, the advisory council said EVs and plug-in hybrids “have quickly emerged as a viable alternative to gasoline or diesel vehicles,” but still require federal support to ensure broader appeal. In addition to the rebate, it recommended that Ottawa help fund a national network of charging stations, similar to the effort in Quebec, which now has 1,000 public charging outlets and is committed to having 2,000 by the end of 2020.
“Choosing a zero-emissions vehicle as their next car is a meaningful way that Canadians can have a positive environmental impact without major changes to their lifestyle,” said the panel, which was co-chaired by Montreal-based environmentalist Steven Guilbeault and Tamara Vrooman, chief executive at Vancity, a B.C. credit union.
Transportation Minister Marc Garneau in January announced targets to increase the sales of zero-emission vehicles – including EVs and hydrogen-powered cars – to 10 per cent of the market by 2025, 30 per cent in 2030, and 100 per cent by 2040. However, it has not proposed regulations to force manufacturers to meet those targets, as Quebec has and B.C. plans to adopt. Last year, 2.2 per cent of new vehicles sold in Canada were either EVs or plug-in hybrids, as sales more than doubled over the previous year, according to Electric Mobility Canada, an industry-backed organization.
The advisory council – which submitted its report to government last week – noted consumers face a $10,000 price gap between EV and a similar model with a gasoline or diesel engine. A $5,000 incentive would make “electric vehicles more affordable for middle- and lower-income Canadians,” the report said.
The previous Ontario government faced criticism because the incentive was being used to buy high-end luxury vehicles with purchase prices in the six figures. In response, the province limited the now-defunct program in 2018 to vehicles that cost $75,000 or less.
Quebec limits its subsidies to vehicles that cost $75,000 or less, while B.C.’s program applies to vehicles up to $77,000. Even though both thresholds represent prices that are out of reach of most Canadian consumers, the advisory council said the Quebec and B.C. limits “might serve as a basis” for a federal threshold.
A 2019 Nissan Leaf EV, one of the most popular models in Canada, starts at $36,798 before taxes. While EVs can cost $10,000 more than comparable gasoline-powered models, lower operating costs and maintenance can shave $1,400 a year off the cost of maintaining a vehicle, Mr. Guilbeault noted in an interview. With the recommended $5,000 incentive, an EV buyer could break even in less than four years, he said.
The transportation sector accounted for 25 per cent of the country’s greenhouse gas emissions in 2016, with passenger cars and light trucks representing fully half of that total, according to Environment Canada. A zero-emission vehicle strategy “is an essential component of tackling emissions in Canada," Mr. Guilbeault said.
The federal government’s pre-election budget is expected to include subsidies for Canadians to purchase electric cars as part of Ottawa’s long-promised commitment to adopt a zero-emission vehicle strategy to reduce greenhouse-gas emissions.
Senior government officials confirmed to The Globe and Mail that next week’s budget will take action based on recommendations from an advisory council, which called for subsidies of up to $5,000 toward the purchase of an electric vehicle (EV) or plug-in hybrid, as well as additional funding for EV charging stations. Environment and Climate Change Minister Catherine McKenna released the council’s report in Montreal on Thursday, saying the government is committed to increasing the availability of lower-emission transportation.
The officials, who were granted anonymity because they were not authorized to speak publicly, declined to confirm details such as the precise size of any federal incentive. But one source said the government would not support tax breaks that apply to the purchase of the most expensive electric vehicles, which led to criticism of Ontario’s former incentive program.
The council recommended that any incentive be short-lived to account for expectations that the cost of electric cars will soon be more competitive with traditional vehicles. Currently, only Quebec and British Columbia offer EV subsidies; the Ontario government cancelled that province’s subsidy program last year. EVs run on battery only and are considered zero-emission vehicles, while the plug-in hybrids have a back-up gasoline engine that takes over when the battery runs down.
In a report to Ms. McKenna and Finance Minister Bill Morneau, the advisory council said EVs and plug-in hybrids “have quickly emerged as a viable alternative to gasoline or diesel vehicles,” but still require federal support to ensure broader appeal. In addition to the rebate, it recommended that Ottawa help fund a national network of charging stations, similar to the effort in Quebec, which now has 1,000 public charging outlets and is committed to having 2,000 by the end of 2020.
“Choosing a zero-emissions vehicle as their next car is a meaningful way that Canadians can have a positive environmental impact without major changes to their lifestyle,” said the panel, which was co-chaired by Montreal-based environmentalist Steven Guilbeault and Tamara Vrooman, chief executive at Vancity, a B.C. credit union.
Transportation Minister Marc Garneau in January announced targets to increase the sales of zero-emission vehicles – including EVs and hydrogen-powered cars – to 10 per cent of the market by 2025, 30 per cent in 2030, and 100 per cent by 2040. However, it has not proposed regulations to force manufacturers to meet those targets, as Quebec has and B.C. plans to adopt. Last year, 2.2 per cent of new vehicles sold in Canada were either EVs or plug-in hybrids, as sales more than doubled over the previous year, according to Electric Mobility Canada, an industry-backed organization.
The advisory council – which submitted its report to government last week – noted consumers face a $10,000 price gap between EV and a similar model with a gasoline or diesel engine. A $5,000 incentive would make “electric vehicles more affordable for middle- and lower-income Canadians,” the report said.
The previous Ontario government faced criticism because the incentive was being used to buy high-end luxury vehicles with purchase prices in the six figures. In response, the province limited the now-defunct program in 2018 to vehicles that cost $75,000 or less.
Quebec limits its subsidies to vehicles that cost $75,000 or less, while B.C.’s program applies to vehicles up to $77,000. Even though both thresholds represent prices that are out of reach of most Canadian consumers, the advisory council said the Quebec and B.C. limits “might serve as a basis” for a federal threshold.
A 2019 Nissan Leaf EV, one of the most popular models in Canada, starts at $36,798 before taxes. While EVs can cost $10,000 more than comparable gasoline-powered models, lower operating costs and maintenance can shave $1,400 a year off the cost of maintaining a vehicle, Mr. Guilbeault noted in an interview. With the recommended $5,000 incentive, an EV buyer could break even in less than four years, he said.
The transportation sector accounted for 25 per cent of the country’s greenhouse gas emissions in 2016, with passenger cars and light trucks representing fully half of that total, according to Environment Canada. A zero-emission vehicle strategy “is an essential component of tackling emissions in Canada," Mr. Guilbeault said.
5_+JqckQttqck
Active Member
Big oil and it's dino juice drinking vehicle makers don't want this to be news at all if they can help it. I'll bet it'll be described as a distraction ploy from the SnC Lavalin burnt pie by the opposition parties.
A few French-language outlets like Radio-Canada have been speculating on this since the report was released in Montreal.
$5K is decent and more sustainable than the $14K rebate which was a feeding frenzy. Dropping the 5% GST on the mass market EVs (priced around $40-70K) would have given considerably less in savings than a $5K rebate/tax credit, so it's a pleasant surprise.
Especially considering the price reductions in the model 3 since 2018, it's pretty attractive for Tesla model 3 & Y buyers. I suspect the $5K incentive won't apply to even the base model S or X. Overall, it's a decent dent into having EV prices sustainably lowered to compete with ICE purchases going forwards. We'll see how many years it's intended to be funded for or if it simply is so in perpetuity until a future government says enough is enough...
Especially considering the price reductions in the model 3 since 2018, it's pretty attractive for Tesla model 3 & Y buyers. I suspect the $5K incentive won't apply to even the base model S or X. Overall, it's a decent dent into having EV prices sustainably lowered to compete with ICE purchases going forwards. We'll see how many years it's intended to be funded for or if it simply is so in perpetuity until a future government says enough is enough...
5_+JqckQttqck
Active Member
Incentives shouldn't discriminate. If it has a battery of X sizes, it's good. A 100K car in taxes still pays for the rebate. The whole point is to encourage people to switch fossil fuel vehicle to cleaner EVs. A model X replacing a Suburban is a win.
Techniques
Member
I just want it to be retro and include those who didn't qualify for the last rebate...ahem like me...
Apparently the Conservatives have been talking about EV plans. No guarantees, of course, but even a brief window for a federal EV rebate would be helpful. I agree, though, that $5k is at a level that is far less likely to make it a political target than the Ontario $14k rebate was.
Anyone know whether the Ontario and BC rebates were based on order date or delivery date when they were introduced? I'm planning on ordering a Model 3 this weekend before the price increase, and so I'm wondering if I might have to cancel and reorder after the budget to get the rebate. Obviously no one will know for sure until Tuesday but at least past history at the provincial level might be a guide.
Sure go tell that to the government and its economic advisors. It's bad optics to give financial incentives to people wealthy enough to afford a $100,000+ vehicle. I'm fine with it (but I also fall into that category). For most Canadians (read: voters), it's a losing proposition.
I agree, but a rebate has to be politically safe to be most useful, and if blocking off the most expensive EVs accomplishes that, it might be worth it.
Completely agree with your argument but unfortunately, the court of public opinion is blinded to this, and politicians are beholden to their viewpoint. It would be nice if the 3/Y qualify for the new $5k rebate.
5_+JqckQttqck
Active Member
I just want it to be retro and include those who didn't qualify for the last rebate...ahem like me...
Haha, come June I may sell this 3 and get the 5K on a performance DM3 <3
Techniques
Member
dj_gon
Member
Only if the Liberal wins. I highly doubt the Conservatives will implement any kind of EV incentive.... Take our stupid Premier for example.
Things are changing. Look at the Abacus Data poll on EVs released yesterday. 61% of Canadians either support or strongly support an EV rebate.
Edit: fixed bad link.
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I don't think that poll is terribly positive. Anyone with a brain in their head will want EV's to become standard (tho they may wish them to be better than they currently are), so for 28-36% of ppl in that poll to be saying no, that's a big percentage of idiots among the general population. And that is also the conservative voter base. I'd love to see a regional breakdown of the numbers in that poll, I can almost guarantee the Ontario/BC/Quebec results would look nothing like the prairies result, and where is the conservative base?
5_+JqckQttqck
Active Member
Once people sit and drive in a Tesla, they want a Tesla - even if they don't say it in public. It's just the hip and cool toy!
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