The EV Affordability Program (EVAP) is the federal incentive that replaced the old iZEV rebate. It gives Canadian drivers money off a new electric vehicle or plug-in hybrid, applied directly at the dealership. Here is how much you can get, which vehicles qualify and how the incentive will shrink over the coming years.
EV Affordability Program: the basics
EVAP applies to vehicles bought or leased on or after February 16, 2026. It runs until March 31, 2031, or earlier if funding runs out. Transactions started before February 16, 2026 are not eligible, even if the car was delivered later.
How much is the incentive?
The amount depends on the vehicle type and on the calendar year in which the dealer submits the eligibility assessment.
- 2026: $5,000 for battery-electric and hydrogen fuel cell vehicles, $2,500 for plug-in hybrids.
- 2027: $4,000 and $2,000.
- 2028 and 2029: $3,000 and $1,500.
- 2030 and 2031: $2,000 and $1,000.
Because amounts step down on January 1, 2027, buyers who plan to go electric soon have a clear reason to compare timing.
Which vehicles qualify?
- New light-duty vehicles (under 8,500 lb), highway-capable, with at least four wheels, registered for the first time.
- A final transaction value of $50,000 or less. Vehicles built in Canada have no price cap.
- Vehicles made in Canada or in a country with a free-trade agreement with Canada.
- Demonstrators with under 10,000 km also qualify.
Leasing rules
Leases must last at least 12 months. A lease of 48 months or more gets the full amount; shorter leases receive a prorated incentive. Our comparison of car financing options helps you decide between buying and leasing.
How do you get the money?
- The dealer checks eligibility and you fill in a consumer consent form, which the dealer sends to Transport Canada.
- If the vehicle and buyer qualify, you sign an attestation form.
- The dealer applies taxes and fees first, then deducts the incentive on the bill of sale or lease agreement.
Consumers cannot apply on their own: the incentive always goes through the dealer or authorized seller. Individuals can receive one incentive over the life of the program; businesses and organizations can receive up to ten.
Is an EV the right choice for you?
The incentive is only part of the equation. Insurance, charging, maintenance and depreciation all matter, as explained in our guide to car ownership costs. For a broader view of the pros and cons, read electric vehicles in Canada: benefits and costs.
FAQ
How much is the federal EV rebate in 2026?
Up to $5,000 for a battery-electric vehicle and $2,500 for a plug-in hybrid.
Is there a price limit?
Yes, $50,000 transaction value, except for vehicles built in Canada.
Can I apply myself after buying?
No. The dealer applies the incentive at the time of sale or lease.
When does the program end?
On March 31, 2031, or sooner if funds are exhausted.