Rebates and Incentives in Canada

Typically, the Canadian federal government does not administer energy incentives. Instead, it provides provinces and territories with funding to offer their own rebates through the Low Carbon Economy Fund or LCEF.

According to the federal government’s website, the LCEF supports projects that help to reduce Canada’s greenhouse gas emissions, generate clean growth, build resilient communities, and create good jobs for Canadians. Projects like these are integral as Canada aims to build a sustainable net-zero economy by 2050.

As announced in Canada’s 2030 Emissions Reduction Plan and Budget 2022, the Government of Canada will be expanding the Low Carbon Economy Fund by investing an additional $2.2 billion over seven years, starting in 2022-23.

Over four years, up to $250 million will help homeowners transition to more affordable and greener home heating sources. This funding, which will focus on supporting lower-income households, will help interested provinces and territories expand their existing programs as well as create new initiatives.

One notable exception is the Zero-Emission Vehicle Incentive for new or leased vehicles. The ZEVI is offered through Transport Canada.

What qualifies as a Zero-Emission vehicle?

According to Transport Canada’s website, a ZEV is a vehicle that has the potential to produce no tailpipe emissions. They can still have a conventional internal combustion engine but must also be able to operate without using it. The $5,000 rebate is automatically applied at the point of sale when you purchase or lease an eligible zero-emission vehicle.

Homeowners may be eligible for the Federal GST/HST New Housing Rebate to recover a portion of the GST or HST that they pay for newly constructed or substantially renovated homes. To qualify, the home must be used as the individual’s or their relation’s primary place of residence. The new housing rebate is especially useful if you’re making a large investment in energy efficiency upgrades.