Federal rebates for electric car kick in, but Tesla Model 3 doesn't ...

Federal rebates to encourage Canadians to buy electric cars take effect today.

The rebates, announced in the last Liberal budget, will take up to $5,000 off the cost of electric vehicles, and $2,500 off plug-in hybrids, but they initially applied only to cars that cost less than $45,000.

Ottawa is raising that to $55,000 to increase the options a buyer can choose and still receive the rebate, which will allow some of the most popular cars, including the Tesla Model 3, to qualify. Tesla recently launched a cheaper Model 3 in Canada with a 150-kilometre-range to qualify for the previous limit, according to Electrek.

Nine electric cars and 13 plug-in hybrids are eligible, including the country's second- and third-most popular electric cars, the Nissan Leaf and the Chevrolet Bolt.

Electric car experts say there is no doubt government incentives help drive electric-car purchases, noting when the new conservative government in Ontario killed a $14,000 rebate last year, electric-car sales in that province plummeted.

Road transportation accounts for as much as one-fifth of Canada's emissions and the incentives are part of the federal government's strategy to meet its international targets for reducing greenhouse-gas emissions to halt climate change.