Overview
- New regulations will tighten vehicle emissions for 2027–32 model years with EV adoption goals of 75% by 2035 and 90% by 2040.
- A five-year rebate program returns with up to $5,000 for battery-electric and fuel-cell vehicles and $2,500 for plug-in hybrids, relaunching Feb. 16 and phasing down to 2030.
- Eligibility rules cap most vehicle prices at $50,000 and limit incentives to models from free-trade partners, with Canadian-made EVs exempt from the cap and Chinese-made EVs excluded.
- Ottawa is committing $1.5 billion to expand charging through the Canada Infrastructure Bank and roughly $3.0–$3.1 billion to help automakers retool and invest in Canada, alongside a new import-credit remission framework.
- Counter-tariffs on U.S. autos will remain, a limited quota for lower-tariff Chinese EV imports is in place but ineligible for rebates, and officials say detailed 2027–32 modelling is forthcoming as industry welcomes flexibility and environmental groups warn of weaker policy.