The federal government recently announced important details regarding its national Incentives for the Zero-Emission Vehicles (iZEV) Program, which will officially take effect on May 1, 2019. As of this date, Canadian fleets and consumers will be eligible for rebates of up to $5,000 on qualifying ZEV purchases under the government’s plan. Business fleets are included as well with tax write-offs for business expected to go up to a limit of $55,000 in the first year of investment.
The program is expected to increase demand for ZEVs, make them more affordable and ultimately help the government reach its target of 100% ZEV sales in Canada by 2040. The government is proposing to invest $300 million over three years on the plan, offering a $5,000 rebate to Canadians and fleets who purchase or lease an eligible ZEV: a battery electric, hydrogen fuel cell, or longer range plug-in hybrid vehicle. They must also select an eligible ZEV with a base-model manufacturer’s suggested retail price (MSRP) of less than $45,000 for passenger vehicles featuring six or fewer seats. Consumers can then add up to $10,000 in options. Those that purchase a ZEV with an MSRP of less than $55,000 with seven or more seats can add up to $5,000.
Fleet could take advantage of the retail rebate (up to 5,000 on eligible vehicles) or the investment tax deduction, but not both. This is excellent news for fleet in Canada. NAFA reached out to the government to push for a rapid rollout of the incentives and ensure fleets were a part of this effort.
Budget 2019 also announced $130 million over five years to deploy a network of zero-emission vehicle charging and refueling stations across Canada. Support is also available for strategic projects for EV and hydrogen infrastructure for corporate fleets, delivery fleets, and mass transit. This funding will be delivered through cost-sharing contribution agreements for eligible projects that will help meet the growing charging and refueling demand. This program is expected to launch this year and fleet managers would be able to submit an application for charging and refueling stations for their fleets.
NAFA Fleet Management Association
http://www.nafa.org/