Drive Electric Program in Quebec: Changes According to the 2017-2018 Budget
The Quebec Government announced their revised 2017-2018 budget, and amongst the many investments planned in several activity sectors, there will be changes to the Drive Electric program that encourages the population de purchase or lease electric vehicles. As a matter of fact, the Government will spend $70.2 million in the next two years on the program. Here is a summary of the changes.
Hybrid vehicles
The $500 rebate offered for the purchase or lease of a hybrid vehicle will be cut. We can still benefit from this rebate for new 2016 and 2017 model-year vehicles, but starting with the 2018MY onwards, buyers will no longer obtain this modest incentive.
Plug-in hybrid vehicles
For cars and trucks equipped with a plug-in hybrid powertrain, and whose MSRP is set at less than $75,000, the current rebate still applies, according to battery capacity.
Battery equal or greater than 4 kWh, but less than 7 kWh: $500
Battery equal or greater than 7 kWh, but less than 15 kWh: $4,000
Battery equal or greater than 15 kWh: $8,000
Click here for the list of eligible vehicles and rebates offered by the Drive Electric program in Quebec.
Starting April 1 2017, plug-in hybrids that cost $75,000 or more will no longer be eligible for rebates.
New electric vehicles
At the moment, the program offers an $8,000 rebate to all fully electric vehicles, but starting April 1st 2017, the amount will be regulated according to price.
Electric vehicles costing less than $75,000 will still be admissible for the $8,000 rebate. However, for vehicles costing at least $75,000, but less than $125,000, the rebate will drop to $3,000. And all electric vehicles costing $125,000 or more will no longer be eligible for a Government rebate.
Pre-owned electric vehicles
In order to increase the number of electric vehicles in Quebec roads, the Government will also introduce a pilot project that will offer a rebate for the purchase or lease of a pre-owned fully electric vehicle. The project will start in April 1 2017 and end on March 31 2018, or limited to the first 1000 applicants.
However, certain conditions have been established to make a pre-owned electric vehicle eligible. It must be three or four years old, it must still be backed by a minimal warranty of three years or 40,000 km, it must be purchased or leased through a dealership and it must be inspected and certified by an automotive manufacturer. In addition, it has to come from outside of the Province of Quebec as to avoid handing out more than one rebate for the same vehicle. Least but not least, the eligible EV had to cost less than $125,000 when purchased or leased new.
These eligible pre-owned electric vehicles will benefit from a rebate of $4,000, or half the amount handed out during the purchase or lease of a new EV.
Charging stations
Buyers of electric vehicles will still benefit from a rebate of $350 for the purchase of a 240-volt charging station for domestic use, and a rebate of $250 for its installation. However, the Government will now allow that more than one rebate be handed out for the same vehicle, but to different owners—thus encouraging car sharing.
In addition, from April 1 2017 to June 30 2018, buyers of a pre-owned electric vehicle that’s eligible for the pilot project mentioned above will benefit from the same rebate towards the purchase and installation of a charging station at home.
The Drive Electric program still offers a rebate to businesses, municipalities and non-profit organisations in Quebec that wish to install charging stations in the workplace, in order to encourage their employees to drive to work with their electric or plug-in hybrid vehicles. The financial aid corresponds to the lowest amount between 50% of the total eligible expenses or $5,000, or up to $25,000 per year for the installation of more than one charging station.
New types of eligible vehicles
Starting April 1 2017, and up to June 30 2018, the Drive Electric program will offer a rebate of $500 towards the purchase of a new fully electric motorcycle, and $8,000 towards the purchase or lease of a new fuel-cell powered vehicle, such as hydrogen.
Luxury tax
Since 1998, passenger vehicles registered in Quebec, weighing 3000 kilograms or less, built in the last seven years and valued at more than $40,000, are subject to a luxury tax of 1% of the market value exceeding $40,000. This tax is applied each year during registration renewal.
However, starting January 1 2018, electric and plug-in hybrid vehicles eligible in the Drive Electric program will be exempt of this 1% tax if their value is less than $75,000.
Objective: 100,000 electric vehicles on Quebec roads
Since its introduction on January 1 2012, and up to February 28 2017, the Drive Electric program helped register 12,843 electric or plug-in hybrid vehicles on the roads of Quebec.