The rebate program, eventually called ecoAUTO Rebate Program, initially offered $1,000 for new automobiles with a combined fuel consumption rating of 6.5 L/100 km (43.5 mpg) or better and minivans, sport utility vehicles (SUVs) & other light trucks with fuel consumption of 8.3 L/100 km (34 mpg) or better, calculated based on a combined 55 per cent city and 45 per cent highway rating.
An additional $500 was offered for each half litre per 100 km improvement in the combined fuel-efficiency rating of the vehicle below these thresholds, for a maximum total of $2,000.
The ecoAUTO rebate program applied to 2006, 2007 and 2008 model-year vehicles purchased or leased (12 months or more) between March 20, 2007 and December 31, 2008.
A Green Levy was charged for new passenger vehicles (excluding trucks) with fuel-efficiency ratings of 13.0 L/100 km (21.7 mpg) or worse.
According to auto industry analyst Dennis DesRosiers, large SUV buyers reacted to the VEI by buying pickups, which are exempted from the extra tax.