Government of Canada invests in zero-emission vehicles

News release

April 17, 2019    Montreal, Quebec    Transport Canada         

Canadians’ quality of life—and Canada’s future growth—are deeply tied to the environment. Failing to invest in a cleaner, more sustainable future threatens the things Canadians rely on for their success: an affordable cost of living, good, well-paying jobs and resilient communities.

Today, the Minister of Transport, the Honourable Marc Garneau, was in Montreal (Quebec) to highlight how investments in Budget 2019 would make it easier for Canadians to choose a zero-emission vehicle. The Honourable Catherine McKenna, Minister of Environment and Climate Change, and the Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, were also in Vancouver (British Columbia) and Toronto (Ontario) respectively to highlight the new incentive program. Budget 2019 provides support to expand the network of zero-emission vehicle charging and refuelling stations, and is creating new incentives for people and businesses to purchase zero-emission vehicles.

The government proposes to invest $300 million over three years on a new federal purchase incentive for eligible zero-emission vehicles.

The purchase incentive for zero-emission vehicles will apply to eligible new vehicles that are purchased or leased on or after May 1, 2019.  This incentive program is a measure announced in Budget 2019 and is subject to Parliamentary approval.

To be eligible for incentives, a vehicle must have a base-model manufacturer’s suggested retail price of less than $45,000 for passenger vehicles with six or fewer seats, and less than $55,000 for vehicles with seven or more seats. For eligible vehicles with six or fewer seats, higher priced versions (trims) are eligible as long as the final manufacturer’s suggested retail price is $55,000 or less.

Canadians who purchase or lease an eligible battery electric, hydrogen fuel cell, or longer range plug-in hybrid vehicle, will receive an incentive of $5,000. Canadians who purchase or lease a shorter-range plug-in hybrid vehicle will receive an incentive of $2,500.

For more information on the program and eligible vehicles, visit or call 1 800 O-Canada (1-800-622-6232).


“The time to act on climate is now. The Government of Canada is working to accelerate the adoption of zero-emission vehicles to help make it easier for Canadians to be part of the solution to climate change and to reduce their daily driving costs. With these investments, Canada is joining a coalition of international partners working towards a future of zero-emission transportation.”

The Honourable Marc Garneau,
Minister of Transport

“We’re committed to supporting businesses who are taking steps today, to help protect our environment for generations to come. Through tax incentives proposed in Budget 2019, the Canada Revenue Agency will administer the new proposed tax measures to encourage businesses to convert to zero-emission vehicles immediately.”

The Honourable Diane Lebouthillier,
Minister of National Revenue

“We are making it easier and more affordable for Canadians to own a zero emission vehicle and we continue to invest in infrastructure needed for easy charging where we work, live and play.  Zero emission vehicles play a key role in a clean future — improving air quality and cutting polluting emissions in the transportation sector.”

The Honourable Amarjeet Sohi,
Minister of Natural Resources

“Zero-emission vehicles are the future of transportation. Our automotive industry and its workers are world class and uniquely positioned to design, develop and build the cars of today and tomorrow. We are working to advance Canada’s leadership position, promote investment and create an economy founded on highly skilled jobs for the middle class.”

The Honourable Navdeep Bains,
Minister of Innovation, Science and Economic Development

“We are working with Canadians across the country to support practical and affordable solutions to fight climate change. The transportation sector is key to Canada’s economy – but it also accounts for a quarter of our emissions. Making sure Canadians have access to options to get where they need to go in a cleaner, cheaper, faster way will protect our environment and grow our economy.”

The Honourable Catherine McKenna,
Minister of Environment and Climate Change

Quick facts

  • Transportation accounts for a quarter of Canada’s greenhouse gas emissions, almost half of which comes from cars and light trucks. The government is committed to putting more zero-emission vehicles on the road, which offer the potential to significantly reduce greenhouse gas emissions, particularly in the longer-term.

  • To support the transition to a low-carbon transportation system, the Government of Canada has set targets for sales of zero-emission vehicles in Canada, which are as follows: 10% of new light-duty vehicle sales to be zero-emission vehicles by 2025, 30% by 2030, and 100% by 2040.

  • Budget 2019 provides $300 million, starting in 2019-20, to introduce a new federal purchase incentive program to encourage more Canadians to buy zero-emission vehicles.

  • The new Incentives for Zero-Emission Vehicles program will supply incentives for zero-emission vehicles, which include battery electric, plug-in hybrid, and hydrogen fuel cell vehicles.

  • This incentive program is aligned with the expert advice delivered by the Advisory Council on Climate Action in their interim report.

Related products


Delphine Denis
Press Secretary
Office of the Honourable Marc Garneau
Minister of Transport, Ottawa

Media Relations
Transport Canada, Ottawa

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