The Conservative government released its annual busget this Mar19th,2007 and made many commitments to fuel efficient cars.
Among the most popular measures introduced was the tax credit for purchasing fuel efficient cars. A basic $1000 rebate for automobiles getting 6.5 L/100 km or less and larger vans, truck and SUV's getting 8.3 L/100. There is even an additional $1000 tax credit available based on values exceeding those above (a Toyota Prius could get the maximum $2000). E-85 vehicles will also be eligable for the credits. For those of you living in P.E.I. that means nearly $5000 dollars of incentives are available as PEI is one of the few proactive provinces offering it's own tax breaks.

One of the most surprising measures introduced was the plan to charge levies on inefficient gas guzzlers starting with the 2011 model year. This went much further than most optimistic environmentalists will admit.

On top of this they plan to start leading by example. The federal government has 26000 automobiles and they are targeting a 15% reduction in green house gas production over 2003 levels.

This budget left many environmentalists scratching their heads. They have generally opposed the Conservative government as there initial mandates and election promising were decidely anti enviroment but their actions after 1 year in office are better than they could of hoped for. Not surprisingly many of them are still anti Conservative even though this is the most pro environmentally friendly budget ever released in canada, they're a stubburn bunch sometimes.

As long as the policies are good who cares what party is in charge, come on environmentalists, admit they're doing a good job and start backing these great measures.

Mr Fezziwig, administrator for Green Cars Now, http://www.greencarsnow.com , a website promoting fuel efficient cars and cleaner alternative fuels and Car Repair Ratings http://www.carrepairratings.com , a website devoted to consumer reviews of auto repair work.

Does this mean that I would get dollar for dollar of both the federal tax credit introduced this year and the provincial tax credit introduced last year if i am buying a 2007 honda civic?

Well, to be fair, the conservatives killed a lot of environmentally important programs as soon as they got into office (Energuide etc...). It was only when the environment shot to the top of the polls that they got green. While I applaud the rebates, according to your report, the guzzler tax does not apply for another 4 years (I did not notice that loophole during the anouncement). So the carrot is small and the stick is, well, still on the drawing board. Much of the other initiatives they are proposing are re-hashed projects that were just getting off the ground and then axed when they arrived.

So while they have made some progress, until they agree to help the oil patch lower their emissions and even try to meet Kyoto, they don't look too green to me yet.

Cheers,

rcomeau

Yes. For example, if you live in Ontario, you can get the federal EcoAUTO rebate plus the provincial one. The Ontario rebate is a set maximum to be applied to the sales tax only. My Honda Civic Hybrid, purchased new, with no trade-in, will get me a total of $4100 back. The first $100 came off the bill as part of the TFFC in Ontario (Tax For Fuel Consumption, a tax/rebate at purchase, applicable to all new purchases). See this FAQ.

2007 Honda Civic Hybrid -> sparkle grey pearl