The Next Generation of EV Support
Following the pause of the iZEV program in early 2025, the Canadian government launched the Electric Vehicle Affordability Program (EVAP) on February 16, 2026. EVAP is narrower than iZEV in some ways and simpler in others: it covers new vehicles only (there is no used-vehicle incentive), and it has no income test or phase-out. The incentive is applied at the dealership when you buy or lease.
Incentive Amounts (2026)
- New BEV/FCEV: Up to $5,000
- New PHEV: Up to $2,500
Important: These amounts step down over the program's life - BEV/FCEV amounts fall to $4,000 in 2027, and PHEV amounts to $2,000. The full year-by-year table is in the "How Much You Get" section below.
New Eligibility Rules
Price Cap Strategy:
- The vehicle's final transaction value must be $50,000 or less.
- Canadian-made vehicles: No price limit (designed to support the domestic EV industry).
Sourcing Requirements:
- Vehicles must be manufactured in Canada or a country with a qualifying Free Trade Agreement.
No Income Limits:
- EVAP has no income test and no high-income phase-out. Eligibility turns on the vehicle rules, the per-person limit (one incentive per individual), and buying through an enrolled dealership.
How to Prepare
- The program is live: EVAP opened on February 16, 2026. There is no consumer application portal - you cannot apply yourself.
- Point-of-Sale: The rebate is applied at the dealership, which confirms your eligibility with Transport Canada and applies the incentive to your bill of sale or lease after taxes and fees.
- Leasing: Leases of 12 months or more qualify, pro-rated by term; a lease of 48 months or more receives the full amount.
Recommendation: If you are buying in late 2026, completing the purchase before the January 1, 2027 step-down keeps the higher 2026 amounts - what counts is the date the dealership submits your eligibility assessment, not the date you ordered.
What EVAP Is
The Electric Vehicle Affordability Program (EVAP) is Canada's current federal point-of-sale incentive for new electric vehicles, run by Transport Canada. It covers new vehicles bought or leased (12 months or longer) on or after February 16, 2026, and runs until March 31, 2031, or earlier if the funding is used up. It replaced the earlier iZEV program, and it works differently from what many readers expect: there is no used-vehicle incentive, and there is no income test.
How Much You Get
In 2026, battery-electric and hydrogen fuel cell vehicles qualify for up to $5,000, and plug-in hybrids for up to $2,500. The amounts step down over the program's life. Battery-electric and fuel cell vehicles drop to $4,000 on January 1, 2027, then $3,000 for 2028 and 2029, and $2,000 for 2030 and 2031. Plug-in hybrids drop to $2,000 in 2027, $1,500 for 2028 and 2029, and $1,000 for 2030 and 2031. The amount you receive is set by the date the dealership submits your eligibility assessment, not the date on your purchase agreement, so a vehicle ordered in December 2026 but assessed in January 2027 receives the 2027 amount.
Vehicle Rules
The vehicle's final transaction value must be $50,000 or less, unless the vehicle is made in Canada, in which case there is no cap. Final transaction value includes the vehicle, options, accessories, and dealer or administration fees, minus any manufacturer or dealer discounts; taxes, freight, PDI, financing, extended warranties, winter tires, and chargers sit outside it. The vehicle must be made in Canada or in a country that has a free-trade agreement with Canada, be a light-duty vehicle under 8,500 pounds, be highway-capable, and meet Canada's Motor Vehicle Safety Standards. It must be new, meaning registered for the first time; demonstrator vehicles with under 10,000 km also qualify.
How the Purchase Works
You cannot apply yourself. Choose an enrolled dealership or authorized seller. They have you complete a Consumer Consent Form, send it to Transport Canada, and, once you qualify, apply the incentive directly to your bill of sale or lease agreement. Signing an Attestation Form is part of the process, and the incentive is applied after taxes and fees, so you see the saving on the final paperwork. There is no program fee, and dealerships are not allowed to charge extra fees for vehicles bought under the program. Individuals can receive one EVAP incentive over the program's five years; organizations and businesses can receive up to 10.
Leasing Math
Leases of 12 months or more qualify, with the incentive prorated: the full amount divided by 48, multiplied by the number of months in the lease. A 48-month lease on a battery-electric vehicle in 2026 receives the full $5,000. A 24-month lease receives $2,500, and a 12-month lease receives $1,250. Plug-in hybrid amounts are half as large at each term.
Worked Example (Hypothetical)
Imagine a hypothetical buyer choosing a battery-electric car with a final transaction value of $49,000 in fall 2026. The vehicle is under the $50,000 cap, so with the dealership's assessment submitted in 2026 the buyer receives $5,000, applied after taxes and fees. If the same buyer instead signs a 24-month lease, the incentive becomes $2,500. This example is hypothetical; your amount depends on the vehicle, the final transaction value, and the assessment submission date.
Frequently Asked Questions
Can I get the incentive on a used EV? No. EVAP covers new vehicles only, including demonstrators with under 10,000 km.
Is there an income test? No. EVAP has no income limit. You must be a Canadian resident, and individuals are limited to one incentive over the program.
Can I apply directly to Transport Canada? No. Only enrolled dealerships and authorized sellers submit claims. If a dealership tries to charge you a fee for using the program, report it to Transport Canada through the contact options on the official Electric Vehicle Affordability Program page.