Tag Archives: subsidies

Federal Government Starts Subsidies on Electric Cars across Canada

If you are shopping for electric cars, today is a great day to buy one as the government of Canada starts subsidizing electric cars across Canada no matter where you are in Canada, British Columbia to PEI.

We have recently written about the $5,000 subsidy and criticized the government for only providing subsidies on cars less than $45,000 therefore eliminating Tesla from the subsidies. Government has listened to us as well as other publications and decided to up their subsidy to $55,000 instead.

With this new increased subsidy you can buy Tesla 3 for $5,000 less. The eligible Tesla according to the government website is: 2019 Tesla Model 3 Standard Range or Standard Range Plus.

The Tesla 3 model now sells for $48,310 therefore you will pay only $43,310 if you decide not to upgrade anything. Even if you upgrade it – make sure only up it to $55,000 to be eligible for $5,000 subsidy. For example the upgrade to autopilot will cost extra $6,600 for a total of $54,910. It will be definitely worth it.

If Telsa is not your thing you can also check out other cars that are being subsidized by the Canadian government. The list of eligible vehicles under the iZEV Program is here and includes amazing cars like Audi A3 Sportback e-tron , Honda Clarity Plug-in Hybrid and Volkswagen e-Golf.

For example if you want to buy VW eGolf with 201km range – it will cost you
$36,720 minus $5,000 or $31,720.

This will definitely help people considering buying electric cars across Canada. In Ontario, the newly elected provincial government of Doug Ford, has killed off the electric cars’ provincial subsidies and the sales decreased. Provincial subsidies are still running in Quebec and British Columbia.

You can see all subsidized cars below and their subsidies.

Model YearMakeModelTrim
2018AudiA3 Sportback e-tronProgressiv Technik
2018/ 2019ChevroletBoltLT (2LT) Premier (2LZ)
2018/ 2019ChevroletVoltLT (2LT) Premier (2LZ)
2017/ 2018/ 2019ChryslerPacifica HybridTouring Premium Platinum
2018FordFusion EnergiSE Luxury Titanium Platinum
2019FordFusion EnergiSEL Titanium
2018FordFocusElectric
2019HondaClarity Plug-in HybridBase Touring
2019HyundaiIoniq ElectricPreferred Ultimate
2019HyundaiIoniq PHEVPreferred Ultimate
2019HyundaiKona ElectricPreferred Ultimate
2018/ 2019HyundaiSonata PHEVUltimate
2019KiaNiro PHEVEX Premium SX
2019KiaNiro EVSX Touring EX
2017/ 2018/ 2019/ 2020KiaOptima PHEVEX EX Premium
2017/ 2018/ 2019/ 2020KiaSoul EVEV EV Luxury EV Sunroof
2020KiaSoul EVEV Premium Limited
2018/ 2019/ 2020MINICountrymanCooper S E All4 Cooper SE All4
2018/ 2019MitsubishiOutlander PHEVSE-Base SE Limited Edition SE Touring GT
2018/ 2019NissanLeafS SV SL
2019NissanLeaf PlusS SV SL
2019TeslaModel 3Standard Range Standard Range Plus
2018/ 2019ToyotaPrius PrimeBase Upgrade Technology
2019Volkswagene-GolfComfortline
2018/ 2019smartEQ fortwo cabriolet
2018/ 2019smartEQ fortwo coupe
2018smartfortwo electric drive cabriolet
2018smartfortwo electric drive coupe

After NYC Loses Amazon’s HQ2 – Toronto Tries Again

As you probably have already heard NYC lost its Amazon HQ2 due to much publicized debate in New York City about why a city should subsidize a company with billions of dollars in profits when they can put money to better use to address issues such as shortage of housing and poverty.

Amazon decided to pull out of New York on Thursday last week due to tremendous pressure put by local government. Amazon was supposed to invest billions of dollars and hire 50,000 high-paying mainly tech jobs.

“A number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward.”

Amazon Inc.

This development might help Donald Trump to get reelected in few years as Republicans can paint Democrats as anti-business and not open for business.

Some local companies were not happy with this announcement.

“I’m really upset because I don’t think they realized what they did. And they’re proud of it? They think they did something lovely? They wanted the political gain, they should have done it in a different way. They get put into office for us, not to work for themselves.”

Gianna Cerbone, Restaurant Owner in interview with New York Times

Within hours of Amazon’s announcement that they are pulling out of the city, Toronto Mayor was quick to try to entice them to come to Toronto again.

I remain so proud of the Toronto Region's Amazon HQ2 bid and the opportunities I'm confident it has opened up for our…

Posted by John Tory on Thursday, February 14, 2019

Amazon said in a statement that it did “not intend to reopen the HQ2 search at this time.” Even if they would even consider Toronto, some Toronto residents like John Tokatlidis were not so happy about this idea.

“Never mind Amazon. How are you improving our public transit?For one, why is Dundas West Station and the Up Express/Go Station not connected? It’s also not accessible for some citizens. We need you to prioritize and fix the issues. Homelessness on the rise. You are pushing runaway development to make this your Mega city that you have forgotten your election promises. Get to work Mr Tory, do the job you were elected to do! “

John Tokatlidis, Toronto’s resident in Facebook comment

Is Ubisoft Hurting Canadian Tech Businesses?

National Post, a Canadian newspaper, as well as La Press, Montreal based French newspaper, recently published an op-ed piece about why they think Ubisoft is taking away talent from other tech firms across Canada. Here is a short summary.

Ubisoft has generated over $2.6 billion dollars in revenues last year, and is currently employing over 4,000 in the province of Quebec. It has also promised to invest further $9 billion dollars over the next 8 years into the province of Quebec.

But now, as pointed out by National Post in English and La Presse, Ubisoft became so successful it has started to hurt local tech companies because they can not attract and hire talent like Ubisoft can.

Quebec subsides gaming industry by providing the tax credit — between 26.25 and 37.5 % of total salaries paid to employees developing video games and other related multimedia products.

It made sense to subsidize the industry 10-15 years ago when Quebec’s economy was in a recession and dying for companies to come there, but now with shortage of IT staff in thousands, it might be the time to end the subsidy according to few local tech companies.

Eric Boyko, the CEO of Stingray Digital Group, a company headofficed in Quebec with about 250 staff in Montreal and another 200 in other places, criticized Quebec’s government decision to keep the subsidy:

“Every CEO I speak to in Montreal and in Quebec, their No. 1 challenge is attracting young employees and technology employees.” Boyko says it is outrageous that gaming companies can get the same employees as they hire at Stingray at up to 37.5% discount.

Eric Boyko, the CEO of Stingray Digital Group

Boyko also said that Ubisoft drives up the competition for software developers and therefore ups the salaries by up to 20 to 30 per cent, to around $80,000 to $120,000.

Dax Dasilva, CEO of Lightspeed, another decently sized software company in Quebec, said in his interview to the Globe and Mail:

Despite the sizable contribution domestic technology companies make toward Quebec’s economic prosperity, government policies regarding innovation have featured incentivizing for the expansion of foreign branch plants in Quebec over the growth and success of homegrown companies locally and around the world. This has had a negative effect on Quebec’s ability to scale domestic companies into global giants.

Canada is already facing a high-skills talent creation and retention problem, particularly in the digital industries. A recent study from the Information and Communications Technology Council states there will be nearly 220,000 unfilled tech jobs across Canada by 2020. In Quebec’s tech sector, we have been at full employment for a decade.


Despite this, government officials in Quebec and across Canada have been investing considerable amounts of time, energy and political capital into attracting multinational technology companies to Canada without any studies on the effect they have on the domestic tech ecosystem and our economy as a whole.


More concerning, these large companies pay little to no taxes to the governments underpinning their growth, as the profits they earn are realized at their foreign headquarters – not in Quebec. Local wealth creation is important because the taxes domestic companies pay on their revenues are reinvested by governments into the important social and infrastructure programs all businesses use and Quebeckers care about. The same goes for the capital gains reinvested by local investors and funds such as Caisse de dépot et placement du Québec, Fonds de solidarité FTQ and others.

Boyko continued saying that the foreign company that gets subsidies to come to Quebec does not create 300 jobs, but it instead steals 300 jobs from local companies.

Yannis Mallat, who runs Quebec’s Ubisoft office does not agree with Dasilva and Boyoko saying that:

“This program is helping to make Quebec and Quebecers richer. We are contributing to net growth in terms of the economy. When you [make] such a big investment, of course you want some guarantees.”

The Institut du Quebec recently published a new study that states that Quebec about 100,000 jobs are un-filled right now. South Ontario and Vancouver are in very similar positions even though their subsidies are not as generous.

What we need to do in Canada now with this historically low unemployment rate is to grow our wealth, not just create jobs.

Maybe instead of trying to import success we can give local tech companies a chance to grow. The new study, Narwhals Top 40 List, pointed out that Canada has failed to produce even one billion dollar business in the last 3 years while US for example had over 19 companies that grew to be valued at over $1b in the same period of time.

While tax subsidies might have been a good idea in 1995 when it was first created – now they make no sense according to La Presse – as we have now very mature market with a well established industry. If we would eliminate the tax credits, the jobs will not be lost, but rather transferred to other companies that are starving for some good talent.

Three Provinces Giving Out Up To $14k To Buy Tesla

UPDATE #3 LAVAL QUEBEC: Laval, a city in Quebec, will give additional $2,000 subsidy – see details below.

UPDATE #2 RE ONTARIO: Ontario judge reversed Conservative ban on subsidy, but only until September 10, after that date, the subsidies will expire. You need to be registered and car delivered by that day to qualify.

UPDATE #1 RE ONTARIO: After a recent election, the new conservative government in Ontario has decided to stop the rebates in that province. Tesla in its turn has decided to sue the Ontario government claiming:

“The Minister of Transportation’s decision suddenly left hundreds of Tesla Canada’s Ontario customers in the unfair position of no longer being eligible for the rebate they had expected to receive when they ordered their vehicles. While purchasers of other brands and from other dealers will still receive the rebate during the transition period.”


Tesla has been in the news a lot as of late due to its popularity as a nice looking car with very efficient electric consumption. But it also comes across as a very expensive car – Model S for example will set you back almost $86,000.

But do not worry with the new launch of Model 3, you can buy Tesla for only $46,000 and achieve 354 km of range on one charge.

Not sure about Tesla or other electronic vehicle? Just look at total CO2 saved by Tesla vehicles, you want your children to breath fresh air , right?

The good thing is that provincial governments recognize that electric cars are good for environment and have decided to give out incentives – some big some not so big – to entice customers to buy electric vehicles.

That’s right – no gimmicks – it’s free money as long as you live / buy the car in the “right” province, they will give you free money to subsidize your car.

The only drawback is that Tesla 3 been having some issues with production and you might need to wait about a year or 2 before it gets delivered to you. But hey you will get your subsidy locked in as described below and only need to pay $1k down-payment to reserve yours.

Blomst / Pixabay

So how does this electric vehicle subsidy work across difference provinces in Canada?

Let’s start by saying that only 3 provinces subsidize electric cars and of course Alberta is one province that does not (why should they with all that cheap gas.)

British Columbia – up to $6,000 subsidy

 

Just watch out though before you go out buying that Tesla S model  vehicles with a MSRP of over $77,000 are not considered eligible for the program.

Quebec – up to $8,000 subsidy 

Belle Province decided to join the game to protect their environment as well. Please see the list of eligible electric vehicles here as per Quebec subsidy program – Tesla 3 is one of them.

Vehicle typeAdditional conditionsRebate Amount
All-electric vehiclesIf the manufacturer’s suggested retail price (MSRP) is less than
$75 000:
$8 000
If the MSRP of the vehicle is between $75 000 and
$125 000:
$3 000
Plug-in hybrid vehiclesIf the manufacturer’s suggested retail price (MSRP) is less than
$75 000:the amount of the rebate is calculated according to the electric battery capacity.
$500, $4 000
or $8 000
Hybrid vehiclesFor the 2017 or earlier model years: no rebate starting with the 2018 model year.$500
Hydrogen-powered vehiclesIf the manufacturer’s suggested retail price (MSRP) is less than
$75 000:
$8 000
If the MSRP of the vehicle is between $75 000 and
$125 000:
$3 000
Low-speed electric vehicles$1 000
Electric motorcycles$2 000
Limited-speed electric motorcycles (electric scooters)$500

 

Quebec is almost the same as BC, but a bit more generous, even though all vehicles over $125k are not subsidized, the vehicles over $75k are still subsidized with $3k subsidy.

City of Laval in Quebec will give out additional $2,000 first-come, first-served municipal incentive. The New Vehicle Information Sheet and MVPA must show the base price of the car as $45,600 and list the options purchased.

Ontario – The Winner – drum roll please – with up to $14k subsidy

  • Incentives of up to $14,000 will be provided for eligible Hydrogen Fuel Cell Vehicles (HFCVs)
  • Incentives for eligible battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are now determined based on each vehicle’s all-electric range and seating capacity. The updated incentives vary from $5,000 to $14,000

You can see the list of eligible cars here and Tesla 3 is eligible for $14k subsidy.

You know what that means you can own your precious little Tesla 3 for only around $31kThat’s about $500 in lease a month for 4 years.

Unlike Quebec and BC, Ontario does not subsidize at all cars over $75k. Maybe it’s for the best if you can afford $100k car, why would you need $14k subsidy, right?

It’s also a good time to act now: the more people interested in owning electric vehicles, the sooner governments will void these amazing subsidies.

Hold on a second, I am a bit confused – what do all these different HFCVs, BEVs and PHEVs acronyms mean – I thought electric car was electric car – well not so fast, buster, here is a quick intro for you to know the difference.

Source http://synergyfiles.com

Do not fancy Tesla 3 that much? Maybe consider all-electric Volkswagen e-Golf – it is few thousand cheaper in Ontario than its all-gas equivalent. However it only gets you about 200km or so vs 350+km with Tesla. But once again – sold out all across the province – but you might be able to reserve it. Price? $36k-$14k = $22k.

Or another good option could be Honda Clarity – basically a plug-in equivalent of the Honda Accord.  It is a PHEV version and only has range of up to 76 kilometres on battery alone, according to Honda. It’s a bit pricier at $40k but with $13k subsidy in Ontario – it is still pretty good deal at $27,000.

You decide – what car do you like? Recommend? Will you be buying electric car or will wait? Did you buy electric car already – are you liking it? Leave us your comments below.