Auto Alert! Quebec Decreases Electric Vehicle Incentives

In its 2022-2023 budget (tabled on March 22, 2022), the Quebec government reduced the subsidies offered on the purchase or lease of electric vehicles. According to the Government's budget report, "[T]his adjustment reflects the reduction in additional costs of electric vehicles on the market relative to comparable internal combustion models, while encouraging the acquisition of vehicles with greater electric range and GHG emission reduction potential."

The subsidies, offered under the Roulez vert program, have been in place since 2012 and are intended to encourage the acquisition of new and used electric vehicles. While the Quebec government announced its intention to extend the Roulez vert program until 2027, the value of the subsidies offered under the Program will be revised as follows:

• For new fully electric vehicles: The maximum rebate will be reduced from $8,000 to $7,000.
• For new plug-in hybrid vehicles: The maximum rebate will be reduced from $8,000 to $5,000.
• For used fully electric vehicles: The maximum rebate will be reduced from $4,000 to $3,500.

Although the official Government budget indicates that the changes took effect on April 1, 2022, the Roulez vert program website explains that the government has implemented a transition period whereby eligible vehicles registered by June 30, 2022 will be entitled to the previous rebate amounts, regardless of the vehicle purchase date. The revised rebate amounts will apply to vehicles registered as of July 1, 2022.

The provincial budget also states that details on the parameters of the incentives offered following the 2022-2023 fiscal year "will be announced at a later date," suggesting that further changes are likely.

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