Electric vehicle rebate among staff proposals to speed up Toronto’s target to become a carbon neutral city
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The City of Toronto is moving forward with plans to provide $250 million in tax breaks to electric vehicles, hoping that the new subsidies offer the biggest jump in EV adoption than ever before.
Officials hope the city now has the financial means to become Toronto’s first and only “EV city” – a designation that would allow for residents to opt for a zero-emissions vehicle and receive up to $3500 a year, or up to $4000 if they have $5000 worth of government bonds. The city hopes to have 100% of the EV rebates for electric vehicles purchased by residents in April of this year, providing a total $2 million in rebates for the city over the next 10 years.
Toronto’s EV rebate program was previously expected to be $200 million this time around, but that number was slashed by City Council last year as part of their financial review for the next two years.
EV rebate programs have become increasingly popular around the world as governments around the globe are trying to encourage the adoption of vehicles that run on electricity and generate no harmful emissions. Similar to Canada, Germany, Norway, and the United Kingdom have recently provided generous EV subsidies, and are hoping to soon have 100% of their residents on electric vehicles by 2020.
At a presentation at the TTC’s Board of Directors meeting on September 20, the City of Toronto outlined its EV rebate program and the plans for the city’s infrastructure and public transit plan.
EV rebate program details
The rebate program is designed to provide residents with up to $3500 towards the purchase of an electric vehicle, with a base cash grant of $1000, which then may be applied to the cost of the vehicle.
The city will cover up to $3000 in the purchase cost of an electric car, with all other rebates covered by the city’s property tax fund, with no cost to residents.
Additionally, the EV rebate program will cover the cost of the vehicle itself, with the city covering between 50-70% depending on the type of electric car.
Finally, the incentives will be available to residents who buy their car through an authorized electric vehicle dealership, with the rebate amount being applied directly to the purchase price.