The Ontario government will offer consumers a rebate of between $5,000 and $8,500 ($4,895 and $8,321 U.S.) if they buy a new plug-in hybrid or fully electric car after July 1.
Rebates for the electric cars will be limited to the first 10,000 applicants who qualify, the Ontario government said Friday.
The rebates are part of a plan to have one out of every 20 vehicles driven in Ontario electrically powered by 2020.
There is no nationally available incentive in Canada.
In the U.S., people who buy plug-in vehicles are eligible for a US$7,500 federal tax credit.