The maker of the most popular electric car in Canada has created a cheaper version of its Model 3 with a shorter range so customers can qualify for a rebate.

The rebates, which start Wednesday and were announced in the Liberals’ latest federal budget, will take up to $5,000 off the cost of electric vehicles and $2,500 off plug-in hybrids.

The incentive is eligible for base model vehicles that cost up to $45,000 and higher priced versions up to $55,000.

Tesla has created a cheaper version of Canada’s most popular electric car, the Model 3, with a shorter range of 150 km and priced it at $44,999 to qualify for the rebate.

A Plus Model is also available at $53,700. Both prices exclude a $1,300 delivery and inspection fee and vehicle registration fees.

A list of the eligible electric cars and plug-in hybrids, including the second- and third-most popular electric cars, the Nissan Leaf and the Chevrolet Bolt, is available on Transport Canada’s website.

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 transport 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.

Business customers receiving the Federal point of sale incentive may not be able to claim the write-down enabled by the 2019 federal budget.

Tesla has outlined some of the provincial incentives on its website.

In B.C. there is a $5,000 rebate for vehicles with a base price under $77,000. The province also offers a $750 rebate for wall connector installation.

In Québec, a rebate of up to $8,000 is available for vehicles under $75,000.

Up to $3,000 is available for cars priced between $75,000 and $125,000.

Quebec also offers up to $600 in rebate on wall connector installation, reserved lane access and free toll bridges and ferry access.

Other provincial incentives include carpool lane access in B.C. and Ontario.

--- With files from The Canadian Press