Alberta was the only province with a year-over-year decline in gasoline prices (-6.4%) to begin in 2023. Meanwhile, electricity prices in Alberta fell 45.6% over the exact same period, which means that it costs Alberta drivers who charge their electric vehicles (EVs) at home a lot less. This comparison conveys just one benefit of EV ownership over traditional motorized vehicles, even when the latter enjoys an ever-so-slight boost in confidence.
The advantages of EV ownership are well documented. There’s a lower fueling, maintenance, and environmental cost. Moreover, modern EVs offer superior performance and functionality in our era of digital transformation. However, there’s another benefit that Alberta drivers may not know about - cost savings via Canada’s Incentives for Zero-Emission Vehicles (iZEV) Program and other potential rebates.
What Alberta Drivers Need to Know About Canada’s iZEV Program and Other Potential Rebates
iZEV Program Savings
Rebates under the Incentives for Zero-Emission Vehicles (iZEV) Program are based upon 12, 24, 36, and 48-month leases and outright purchases. They also consider the Make, Model, Model Year, Trim, and Fuel Type of the vehicle. Fuel types are broken down into BEV, PHEV, and FCEV. BEV refers to Battery Electric Vehicle, and PHEV is the acronym for Plugin Hybrid Vehicle, while FCEV is in reference to a Fuel Cell Vehicle. The rebates range from $625 up to $5000.
How to Qualify for the iZEV Program
To qualify for the program, your EV must be on the iZEV List of Eligible Vehicles which is updated on an ongoing basis. You can view this list on the Transport Canada platform right here to see if your current (or planned-for-purchase) EV is eligible.
Eligibility is also based on the date of purchase. Vehicles must be purchased after the respective eligibility date for the vehicle (listed here). So if you’re in the market for an EV, now is a good time to proceed with the investment. It is important to act soon, as the iZEV Program is available until March 31 of 2025 OR until available funding is exhausted. You can monitor remaining funds for iZEV here. Should a large number of Canadians discover and take advantage of the program over the months ahead, the rebate incentive may reach capacity before the intended date. Alberta drivers are encouraged to act fairly quickly.
Other Available Rebates
The rebates included in the iZEV Program entice EV ownership enough on their own. That being said, there may be other available rebates. As a homeowner, there may be rebates for residential charging station installations via the Canada Greener Homes Grant. We encourage you to monitor the Federal Government of Canada’s Funding, Grants and Incentives resource centre for ever-changing updates. If you reside within Edmonton AB and want to know if you qualify for rebates for an EV charging station installation, call Building Electric at (780) 328-6491.
Incentives for Entrepreneurial Albertan EV Drivers
A number of Alberta residents are also self-employed and small business owners, As with most entrepreneurs and small business owners, personal vehicles are typically used to conduct business. There are tax incentives for owning/operating an electric vehicle.
Of course, tax incentives are contingent upon how you set yourself up (Personal Corporation, etc.). There are two new Capital Cost Allowance (CCA) classifications for EVs. One is Class 54 for motor vehicles and passenger vehicles that exclude “taxicabs.” The other is Class 55 for automobiles for lease or rent and “taxicabs.” The CCA and deduction rates vary between the two classifications. We don’t want to veer too far from the scope of this article (which is for Alberta drivers in general), but if you are an entrepreneur and you use (or plan to use) an EV to conduct business, please reference this Government of Canada guide to CCA for Zero-Omission Vehicles. No matter where you land as a small business owner or contractor, there will be a tax incentive to owning/leasing an EV.
We also want to touch on Alberta entrepreneurs who have opted into courier/delivery platforms and/or ride-hailing services such as Uber and Lyft. You too will enjoy CCA deductions on purchasing an EV, should you prove to CRA the extent the EV is used as a source of income. Your accountant will help with this. However, there are other benefits you may not know about. For example, Uber signed on to Electric Mobility Canada’s 2030 EV Action Plan. Under this plan, Uber EV drivers are eligible for the Zero Emissions incentive, which lets them earn an extra $1 on every trip.
Electric Vehicle rebates incentivize Alberta drivers to get on board with EV ownership at a record pace. Building Electric is helping lead the charge by offering EV charger installations for homeowners in the greater Edmonton area. Contact us today to discuss your options.