OTTAWA -- Federal rebates to encourage Canadians to buy electric cars take effect today.
The rebates, announced in the last Liberal budget, will take up to $5,000 off the cost of electric vehicles, and $2,500 off plug-in hybrids, but they apply only to cars that cost less than $45,000.
Ottawa is raising that to $55,000 to increase the options a buyer can choose and still receive the rebate, but the price limit means the most popular electric car in Canada -- the Tesla Model 3 -- is not going to qualify.
Nine electric cars and 13 plug-in hybrids are eligible, including the second- and third-most popular electric cars, the Nissan Leaf and the Chevrolet Bolt.
Electric-car experts say there is no doubt government incentives help drive electric-car purchases, noting when the new conservative government in Ontario killed a $14,000 rebate last year, electric-car sales in that province plummeted.
Road transportation accounts for as much as one-fifth of Canada's emissions and the incentives are part of the federal government's strategy to meet its international targets for reducing greenhouse-gas emissions to halt climate change.
BNN Bloomberg Picks
Rhine River gets too shallow in another crisis for European energy
How rising rates are making GICs more attractive for investors
Eric Nuttall's Top Picks: August 12, 2022
Mastercard faces retailer backlash over instalment payments
What to know about insurance in 'summer of travel hell'
Rubik's cube is going digital as Spin Master buys out game studio