Vehicles Powered by Alternative Fuels
Did you know that if you purchase or lease a vehicle that operates on alternative fuels, you may qualify for a rebate?
People who purchase or lease new or used vehicles licensed under the Highway Traffic Act (e.g., automobiles, buses, trucks, and vans) may qualify for a rebate of retail sales tax (RST) if the vehicles operate or are converted to operate on an alternative fuel.
How much is the rebate?
A rebate of the 8% RST paid on vehicles powered by alternative fuels, including RST paid on any conversion costs, is limited to:
- $750 for propane vehicles
- $1,000 for vehicles powered by any other alternative fuel
- $1,000 for HEVs delivered to purchasers after May 9, 2001 and before March 24, 2006
- $2,000 for HEVs delivered to purchasers after March 23, 2006 and before April 1, 2012.
The rebate dollar limits do not apply to buses.
Are there time limits to qualify?
A vehicle that is converted after purchase may also qualify for a rebate of RST (including the TFFC). To qualify for a rebate, the vehicle must be converted within 180 days from the date it was purchased.
Rebate applications must be received within four years from the date the RST was paid.
Who can apply for the rebate?
People who purchase or lease new or used vehicles licensed under the Highway Traffic Act (e.g., automobiles, buses, trucks, and vans) may qualify for a rebate of RST if the vehicles operate or are converted to operate:
- exclusively on electrical energy
- exclusively on propane, natural gas, ethanol, methanol, or other manufactured gases; or
- as dual-powered vehicles (vehicles that use one of the alternative fuels mentioned above and that can also be powered by gasoline or diesel fuel).
Who cannot apply for the rebate?
A rebate is not available on vehicles using a mixture of an alternative fuel and gasoline or diesel fuel. The RST paid when an extended service contract or warranty is purchased is also not rebated.
How do I apply for the rebate?
To claim your rebate, you need to complete the RST Application for Rebate - Vehicles Powered by Alternative Fuels
, and then return it signed with the required documents to:
Ministry of Revenue
Retail Sales Tax
PO Box 646
Oshawa ON L1H 8X2
Rebate applications must be received within four years from the date the RST was paid.
Learn more
RST Guide 702 - Vehicles Powered by Alternative Fuels provides complete details about the program and rebate information and application.
The Government of Canada also offers rebates for fuel-efficient vehicles. Visit the ecoAUTO Rebate Program at Transport Canada's website for program details and list of eligible vehicles.
What if I have more questions or need help?
- Contact your nearest Ministry of Revenue Tax Office for assistance
- Call 1 866 ONT-TAXS (1 866 668-8297)
- TTY (Teletypewriter) 1 800 263-7776 Toll-Free (Ontario)
