Ottawa's new EV plan outlines rebates, chargers and industry supports.

The federal government reintroduced EV purchase rebates and pledged $1.5 billion for charging infrastructure, while proposing a cap-and-trade credit system and new tax measures for the auto sector.

The federal government announced a package of measures meant to increase electric vehicle adoption while supporting Canada’s auto sector. The plan reintroduces purchase rebates, commits funding toward charging infrastructure, and signals a cap-and-trade credit approach for automakers. It also includes new tax provisions and a strategic fund for manufacturing. Officials provided timelines and funding levels in the announcement. Main details: - The rebate program returns and will offer up to $5,000 toward a new EV this year; plug-in hybrids will receive up to $2,500, and rebate amounts will decline annually until they end in 2031. - Eligible vehicles must cost less than $50,000 unless built in Canada; the article notes the Dodge Charger and the Chrysler Pacifica as the only Canadian-built models currently eligible. - The program is set to resume on Feb. 16, will run for up to five years or until $2.3 billion in funding is spent, and the government forecasts 840,000 new EVs under the plan. - Ottawa pledged $1.5 billion for a national charging infrastructure strategy; a 2021 analysis estimated Canada needed 52,000 chargers by end of 2025, while current departmental figures cited about 38,753 chargers and 6,170 ports added last year. - The government said it will maintain a 25 per cent tariff on U.S. auto imports while signaling a cap-and-trade credit system that would let manufacturers earn credits through production and investment in Canada and trade surplus credits; consultations were announced. - New tax measures include a "productivity super deduction" for investment write-offs, write-offs for equipment used to build clean tech, and $3 billion from a strategic response fund earmarked for auto manufacturing. Summary: The measures combine consumer incentives, infrastructure funding, and industry supports aimed at raising EV uptake and encouraging domestic production. The rebate program restart and charging funds are scheduled elements, and consultations on the cap-and-trade credit system are planned. Many implementation details and the precise number of new charging ports to be delivered remain undetermined at this time.