The electric vehicle industry has set the world on storm because of numerous reasons such as there is no more use of fossil fuels which means the promotion of green energy. The environmental impacts are to be reduced along with using state of the art technology.
The federal government of Canada has recently set some goals for the increase in electric vehicles all across the country.
- By the end of 2025, 10 percent of vehicle sales of zero emissions.
- By the end of 2030, 30 percent of vehicle sales of emissions-free.
- By the end of 2040, 100 percent of vehicles must be emissions-free.
Incentives offered by the Canadian Government for Electric Vehicle Owner
The Canadian government is very serious about the adaptation of electric vehicles by its residents and the proof to it is that various incentives have been offered for electric vehicle owners.
- Reduced EV Price: One of the major incentives is that price of electric vehicles has been reduced. The federal government of Canada has offered over $5000 of rebate for the purpose of hydrogen fuel cells or electric batteries of the vehicles. Therefore, the retail price got lower than $45000. It is expected that over the next few years, the transportation industry of Canada will dedicate $300 million for the implementation of this program. There are various rebate programs offered by provincial governments as well for the EV owners. For example, in British Columbia, there is a rebate of about $6000 on the purchase of a new EV and $3000 on used EV. In Quebec, a rebate of about $8000 is on a new EV. Rebate of $600 is for the installation of a home charging system for EV.
- Tax Write-off on Purchase of EV: There is another EV incentive program of Canada that allows the businesses to deduction of full capital costs of the vehicles with zero emissions. The maximum investment for the first year is about $55000. There is an option for immediate expense for the EV purchase and business will deduct the acquisition cost each year after the acquisition of the vehicle.
- Charging Infrastructure Expansion for EV: The current charging infrastructure for EVs is not up to the mark to date, that is why the government has decided to offer incentives for the expansion of charging infrastructure. The federal government has set to spend over $130 million for building up the state-of-the-art charging infrastructure for refueling EVs. The goal is set for the next 5 years. This will enable EV owners to charge up their vehicles anytime anywhere.
There are some other incentives as well for the owners of EVs, however, such incentives are for EV owners all across the globe.
- There are fewer fuel costs. The EVs are running on electricity which is about 1/3rdexpensive when compared to gasoline.
- The insurance rates for EVs are discounted. Most of the insurance companies are offering insurance with the name “green car discounts”. Moreover, the insurance cost is representing a significant portion of the total cost of EVs.
- The EVs have lower maintenance costs because there is no need for an oil change, spark plugs, gaskets, and other maintenance works. These vehicles are working on the regenerative braking system reducing the wear and tear of brake pedals.