The federal government is expanding its electric vehicle rebate program to include larger vehicles such as vans, SUVs and trucks which previously had not qualified.
The program, launched in 2019, offers a $5,000 rebate for fully electric vehicles and $2,500 for hybrid vehicles
Starting next week, the rebate will be extended to cars with a base model price below $55,000 and to SUVs, pickup trucks and minivans with a base model price below $60,000.
Consumers who buy those vehicles can choose higher trims or add options worth up to $10,000 and still qualify for the rebate.
That means a car with a base model price of $55,000 with a trim price of $65,000 would still qualify, while a car with a base model price of $60,000 would not be eligible.
For example, the Tesla Model 3, with a base price of $61,380, would be excluded from the program, while the "premium" trim of the Ford Mustang Mach-E, priced slightly higher at $61,895, would qualify.
The previous rebate was available only to cars priced under $55,000.
WATCH: Transport minister says rebate expansion makes electric vehicles more affordable
The program's expansion was announced in the budget earlier this month but Transport Minister Omar Alghabra announced the new details on Friday.
"The expansion of the incentive program I'm announcing today will provide Canadians with more opportunities to purchase or lease the vehicle that meets their needs," he said.
In addition to the price cap expansion, the full $5,000 rebate will now also be offered to hybrid vehicles with an electric range of 50 kilometres or more.
The budget allocated $1.7 billion to continue the program into 2025 and expand its scope.
The government is aiming to make 100 per cent of new vehicle sales zero-emission by 2035.
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