The Canadian province of Ontario has been helping early adopters of hybrids since 2001. In July 2010, the Ontario government started a new incentive program for consumers purchasing a plug-in hybrid electric or battery-fueled car. The incentive only applies to new cars. Organizations as well as individuals can apply, but there is a limit of five applications in a year. The incentive program is part of Ontario´s plan for one in every 20 vehicles on the road to be a hybrid by 2020.
Vehicles containing a battery that stores electricity come in two types: the conventional hybrid electric vehicle (HEVs) and the hybrids that plug in to the electric grid known as PHEVs and BEVs. These acronyms stand for plug-in hybrid electric vehicle and battery electric Vehicle. These two car types have a greater capacity than the conventional hybrid and only these types are eligible for the incentives of between $5,000 and $8,500 in Canadian currency.
PHEV and BEV vehicles bought since July 1, 2010, are eligible for the grant, provided they are also capable of being driven on a highway. The amount of the incentive given depends on the battery storage capacity. For example, the incentive payment for a hybrid with a 4kWh (kilowatt-hour) battery is $5,000, while a car with a 17kWh battery qualifies for $8,500. Conventional hybrids, hybrid conversions and other types of electric vehicles do not qualify for the incentive. The Tesla Roadster and the Smart fortwo Electric Drive are two of the eligible makes.
Incentives are also given to organizations or individuals who prefer to lease a hybrid car. The amount of the incentive paid relates to the length of the lease and whether the lease is for personal or fleet use. For example, incentives of 33 percent, 66 percent and 100 percent are given for 12-, 24- and 36-month personal vehicle leases. The percentage relates to the proportion of the full incentive if the person bought the car. Fleet vehicles only receive an incentive if the car is leased for a minimum of 36 months, when a 100 percent incentive is given.
Owners must register and plate their vehicles in Ontario for a minimum of 12 months to qualify for the incentive. If a vehicle is bought outside Ontario, the owner can only apply for the incentive if she registers the vehicle for the first time in Ontario. An automobile dealer can apply for the incentive on behalf of the customer, or the car owner can send in an application to the Ontario Ministry of Revenue.
