Following the federal government’s removal of the carbon tax, B.C. faces a $1.8 billion deficit that may see provincial EV rebates scrapped

The government of British Columbia is taking a hard look at expenditures in the wake of the cancellation of the consumer carbon tax by the federal government.

The province projects it will need to rebalance its budget to account for a $1.8-billion hole left by the tax. As a result, provincial programs, including the CleanBC EV rebates are under scrutiny.

“That’s one of the CleanBC issues we’re reviewing and we will have more to say about that shortly,” said Adrian Dix, B.C.’s energy minister, to reporters during a scrum at the legislature earlier this week.

CleanBC EV rebate

Currently, B.C. offers $500 to $2,000 for plug-in hybrids, and between $1,000 to $4,000 for battery-electric and long-range plug-in hybrids.

However, only those in B.C. earning $80,000 or less per year are eligible for the EV rebates. Those making $80,001 to $100,000 are eligible for a partial rebate. Any individual earning over $100,000 is not eligible for any rebates.

The rebates are still available, but the government would not confirm how much of the funding remains.

The leaders of both the provincial NDP and Green parties (David Eby and Jeremy Valeriote, respectively) say that tough cuts are coming. Both say they hope the EV rebates can remain.

Meanwhile Conservative leader, John Rustad, was unequivocal in his opinion on the future of rebates.

“When you look at the potential damage from Clean B.C. to our economy and how it will put a brake on our economy, it actually needs to be pulled out,” he said, when speaking to CBC News.

Rebate status across Canada

If the CleanBC rebate is cancelled, it marks the third time an EV rebate program has ended in Canada in recent months.

In January the federal government announced its incentive for zero-emission vehicles (iZEV) program had exhausted its funding. There is no update on whether or not the federal government will renew it.

Then, in February, Quebec suspended its Roulez Vert rebate program after funding ran out. In April the province opted to top up the fund and reopen the program.

Meanwhile, the decision about whether to extend EV rebates in Newfoundland and Labrador until March 2026 is set to come next week.

Provincial programs in Nova Scotia, New Brunswick and Prince Edward Island are all continuing.