12 Days Left For Green Car Rebate

From The Globe And Mail

Jeremy Cato

Globe and Mail Update Published on Thursday, Jun. 17, 2010 3:59PM EDT Last updated on Thursday, Jun. 17, 2010 4:02PM EDT

If you plan to buy a “green” ride and you live in Ontario or British Columbia, you might want to get cracking before the end of this month.

This has everything to do with the federally administered Harmonized Sales Tax. The HST, of course, goes into effect July 1, 2010 in B.C. and Ontario. While the HST may yet bring down the Liberal government in B.C. – or at the very least cost Premier Gordon Campbell his job – of more immediate concern to green car buyers is the end of government rebates.

In a nutshell, the HST replaces the retail sales taxes in Ontario and B.C. Consumers will soon face a combined GST/provincial sales tax levy. Here's the issue: the sales tax rebate for buyers of hybrid electric vehicles, along with propane vehicles and other alternative fuel vehicles, disappears on July 1.

In Ontario, the Revenue Ministry's Vehicles Powered by Alternative Fuels program made hybrid buyers eligible for a $2,000 provincial sales tax rebate until March 31, 2012. Then the HST came along. Ontario's Revenue Ministry says on its Alternative Fuels Web site that the sales tax rebate will end at the end of this month. Check it out here: http://www.rev.gov.on.ca/en/REFUND/VPAF/.

The two grand rebate has been a major selling point with hybrids, not to mention propane vehicles ($750 rebate) and other alternative fuel vehicles – electric cars and so on ($1,000). B.C. and Ontario may yet introduce new alternative fuel rebate schemes, but who knows. Both governments are in the red and looking to save money wherever possible. New car subsidies may not be high on the budget agenda.

With that in mind, Deals of the Week took a closer look at offers on four hybrids, crunched the numbers and factored in the hybrid rebate which will soon expire. As usual, detailed pricing information was provided by www.carcostcanada.com.

Bottom line: if you want a green car, government money comes off the table in 12 days. Tick, tock