The federal Electric Vehicle Affordability Program (EVAP), run by Transport Canada, takes up to $5,000 off an eligible new battery-electric or hydrogen fuel cell vehicle and up to $2,500 off a new plug-in hybrid in 2026, applied by the dealership at the point of sale. It covers purchases and leases from February 16, 2026 to March 31, 2031, or until its funding runs out. It replaced the older iZEV rebate, which paused on January 12, 2025 when its funding was fully committed, so articles written during that pause that say “there is no federal EV rebate” are out of date.
Several provinces add their own rebate on top: Quebec and Manitoba currently list one, British Columbia’s is on hold, the programs in New Brunswick, Nova Scotia and Newfoundland and Labrador have closed, and Prince Edward Island published amounts in 2025 but its current status is not confirmed here. Program amounts and status change often, so confirm the current program with Transport Canada and your province before counting a rebate in your budget. This page is part of our guide to buying a car in Canada.
Federal rebate: the Electric Vehicle Affordability Program (EVAP)
| Feature | Detail |
|---|---|
| Run by | Transport Canada |
| Program period | February 16, 2026 to March 31, 2031, or earlier if the funding is fully used |
| Maximum in 2026 | $5,000 for a battery-electric or fuel cell vehicle; $2,500 for a plug-in hybrid |
| Price cap | Final transaction value of $50,000 or less; no cap for a vehicle made in Canada |
| Where it was made | Canada, or a country with a free-trade agreement with Canada |
| Vehicle | New (registered for the first time), light-duty (under 8,500 pounds), highway-capable, at least 4 wheels; demonstrators with under 10,000 km on the odometer qualify |
| Leases | At least 12 months; the full amount for a lease of 48 months or more, prorated for a shorter one |
| How many | One incentive per individual over the program; up to 10 for an organization or business over the program; up to 50 a calendar year for a carsharing company approved by Transport Canada |
Used vehicles don’t qualify for EVAP, since the vehicle has to be registered for the first time.
How the maximum steps down each year
The maximum falls over the program’s life. The amount you get is set by the date the dealership submits your eligibility assessment through the program portal, not the date you bought or leased the car.
| Year | Battery-electric or fuel cell | Plug-in hybrid |
|---|---|---|
| 2026 | $5,000 | $2,500 |
| 2027 | $4,000 | $2,000 |
| 2028 | $3,000 | $1,500 |
| 2029 | $3,000 | $1,500 |
| 2030 | $2,000 | $1,000 |
| 2031 | $2,000 | $1,000 |
How you get it
Buyers can’t apply for EVAP themselves. An enrolled dealership or authorized seller checks that you and the vehicle qualify (you sign a consumer consent form, then an attestation form), and the incentive comes off your bill of sale or lease agreement. The dealer applies taxes and fees first and the incentive after, so the rebate doesn’t lower the sales tax on the car. The current rules are on Transport Canada’s EVAP overview; the amount steps down and the funding can run out before the scheduled end.
The separate Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) program, for businesses and organizations buying commercial trucks and other heavy vehicles, closed on March 31, 2026.
Do hybrids qualify for an EV rebate in Canada?
Plug-in hybrids do; conventional hybrids don’t. EVAP has two incentive levels: one for battery-electric and hydrogen fuel cell vehicles, and one for plug-in hybrid electric vehicles (up to $2,500 in 2026). A plug-in hybrid gets the PHEV amount when it meets the same conditions as any other vehicle in the table above: new, under the price cap unless made in Canada, and made in Canada or a free-trade partner country. A conventional hybrid, which charges its battery from the engine and braking and can’t be plugged in, isn’t in either level, so it gets no federal rebate.
Provincial programs set their own lists. PEI’s incentive has a separate plug-in hybrid amount, and Manitoba’s program counts plug-in hybrids as electric vehicles; the province’s eligible-vehicle list shows the exact models.
Provincial EV rebates
| Province | Program | Status | Provincial rebate on a new vehicle |
|---|---|---|---|
| Quebec | Roulez vert | Active; ends December 31, 2026 | Up to $2,000 (battery-electric) |
| Prince Edward Island | PEI EV Incentive | Check the PEI government page for current status | $4,000 (battery-electric), $2,000 (plug-in hybrid) as of June 2, 2025 |
| Manitoba | Manitoba Electric Vehicle Rebate Program | Active; extended in the 2026 budget | $4,000 |
| British Columbia | CleanBC Go Electric | Passenger rebate paused | None while paused |
| New Brunswick | NB EV Incentive | Ended July 1, 2025 | None |
| Nova Scotia | Electrify Nova Scotia | Ended; final payments issued in May 2025 | None |
| Newfoundland and Labrador | NL Hydro EV Rebate | Ended March 15, 2026 | None |
| Ontario | Electric and Hydrogen Vehicle Incentive Program | Cancelled July 11, 2018 | None from that program |
In every province, the federal EVAP amount applies to an eligible new vehicle whether or not the province adds anything.
Quebec: Roulez vert
| Roulez vert | Amount |
|---|---|
| New battery-electric vehicle | Up to $2,000 |
| Used battery-electric vehicle | Up to $1,000 |
| MSRP cap (new) | $65,000 |
| Program end | December 31, 2026 |
Roulez vert stacks with EVAP. The program ends on December 31, 2026, so a new vehicle has to be registered by then (the registration date, not the purchase date, decides eligibility); confirm the current amounts and vehicle list with the Quebec government. Quebec’s electricity rates also shape the running cost of an EV there, which our guide to EV charging costs in Canada compares by province.
Prince Edward Island: PEI EV Incentive
| PEI EV Incentive (amounts as of June 2, 2025) | Amount |
|---|---|
| Battery-electric vehicle | Up to $4,000 |
| Plug-in hybrid | Up to $2,000 |
| How it’s applied | At participating PEI dealerships (point of sale); for off-island purchases, Access PEI staff help with the application when you register the vehicle |
Check the PEI government’s EV incentive page for the program’s current status and amounts before you count on it.
Manitoba: Manitoba Electric Vehicle Rebate Program
Manitoba’s rebate is $4,000 on a new eligible electric vehicle and $2,500 on a pre-owned one; a lease of at least 12 months gets $1,000 to $4,000 on a new vehicle, depending on the lease length. A new vehicle needs an MSRP under $70,000 and a used one a purchase price under $70,000, it has to come from a registered Manitoba dealer, and it must stay in the owner’s name and registered in Manitoba for at least 12 months. Tesla vehicles and EVs made in China bought after March 19, 2025 aren’t eligible. You apply through Manitoba Public Insurance once the vehicle is registered (the dealer can’t take it off the price), and the province says buyers who received the federal EVAP incentive can also apply. The program was extended in the 2026 budget; Manitoba’s EV rebate page has the eligible-vehicle list and the current rules.
British Columbia: CleanBC Go Electric
BC’s CleanBC Go Electric passenger vehicle rebate is paused, so a BC buyer of a personal EV currently gets no provincial rebate but can still receive the federal EVAP amount. Other CleanBC Go Electric rebates (for trucks, buses, motorcycles and cargo e-bikes) and BC’s separate Home and Workplace EV charger program are not part of the passenger rebate.
New Brunswick
New Brunswick’s provincial EV Incentive Program ended on July 1, 2025. Buyers of an eligible new vehicle there can still receive the federal EVAP amount.
Nova Scotia
The Electrify Nova Scotia rebate on new electric vehicles has ended, with final payments issued in May 2025. A separate program for medium and heavy-duty vehicles set an April 15, 2026 deadline for eligibility forms. Buyers of an eligible new personal EV can still receive the federal EVAP amount.
Newfoundland and Labrador
NL Hydro’s EV Rebate Program ended on March 15, 2026. Buyers of an eligible new vehicle there can still receive the federal EVAP amount.
Ontario
Ontario’s earlier electric and hydrogen vehicle incentive program was cancelled in July 2018. An Ontario buyer of an eligible new vehicle can still receive the federal EVAP amount. Some local electricity utilities have offered rebates toward a Level 2 home charger, so it can be worth asking yours.
Alberta, Saskatchewan and other provinces
This page lists only the provincial programs it could confirm from the province or its utility. If your province isn’t listed, check its government site for a current program. You can still receive the federal EVAP amount on an eligible new vehicle.
Business purchases: CCA Class 54 and EVAP
A business that buys a zero-emission passenger vehicle claims capital cost allowance on it in Class 54, at 30%, with a cost ceiling of $61,000 before tax for a zero-emission passenger vehicle acquired in 2026; that tax treatment is separate from EVAP, which a business can receive for up to 10 vehicles over the program. Our guide to vehicle expenses for the self-employed covers the CCA classes, the business-use logbook and how the ceilings work.
Charging and running costs
A rebate lowers the purchase price once; the cost of electricity versus gasoline keeps adding up for as long as you drive the car, and it depends on your province’s electricity rates and where you charge. The EV charging costs guide works through home and public charging costs by province.
Is an EV cheaper than a gas car after the rebate?
It depends on the purchase-price gap after any rebate, how far you drive, insurance and resale value. Our comparison of EV vs gas car costs in Canada adds those up over 10 years, and the cost of owning a car in Canada breaks down the yearly costs any car carries.
Common mistakes with EV rebates
| Mistake | Consequence | How to avoid it |
|---|---|---|
| Assuming there is no federal rebate (a holdover from the 2025 iZEV pause) | Missing the EVAP amount | Check eligibility with the dealer and on Transport Canada’s EVAP page |
| Trusting older articles that describe only iZEV | Wrong expectations about the amount | Confirm the current program name (EVAP) and this year’s maximum |
| Assuming BC, New Brunswick, Nova Scotia or Newfoundland and Labrador still pay a provincial rebate | Budgeting for money that isn’t there | Those programs are paused or closed; the federal amount still applies |
| Missing Quebec’s deadline | No Roulez vert rebate | Roulez vert ends December 31, 2026 |
| Expecting EVAP on a used EV | No federal rebate | EVAP covers new vehicles only; Quebec and Manitoba have used-vehicle rebates |
| Buying an imported vehicle near the EVAP price cap | No federal rebate if the final price is over the cap | Check where the vehicle was made (Canadian-made vehicles have no cap) |
| Assuming a conventional hybrid qualifies | No federal rebate | Only plug-in hybrids are in EVAP’s hybrid level |
Key takeaways
- The federal rebate is EVAP, which replaced iZEV: up to $5,000 for a new battery-electric or fuel cell vehicle and $2,500 for a plug-in hybrid in 2026, on vehicles with a final price of $50,000 or less (no cap for Canadian-made vehicles), stepping down each year until the program ends on March 31, 2031.
- Plug-in hybrids qualify for the smaller amount; conventional hybrids don’t qualify.
- Quebec and Manitoba have provincial rebates that stack with EVAP; Quebec’s ends December 31, 2026.
- BC’s passenger rebate is paused, and New Brunswick, Nova Scotia and Newfoundland and Labrador have closed theirs; Ontario’s earlier program was cancelled in 2018. The federal amount applies on top of any provincial rebate for an eligible new vehicle.
- Confirm the current program with Transport Canada and your province before buying: amounts step down, and funding can run out early.
Related guides
- EV vs gas car: total cost of ownership in Canada
- New vs used car in Canada
- Car sales tax in Canada
- Carbon tax rebate guide
- Best gas rewards credit cards
Back to: Car buying guide
Sources
The figures and rules on this page come from these sources, last checked against them between September 4, 2026 and October 1, 2026. How we check facts.
- BC Hydro: Electric vehicle incentives in B.C.
- Canada Revenue Agency: Classes of depreciable property
- Department of Finance Canada: Government Announces the 2026 Automobile Deduction Limits and Expense Benefit Rates for…
- Gouvernement du Québec: About the Roulez vert Program | Gouvernement du Québec
- Government of Canada: Electric Vehicle Affordability Program: Overview
- Government of Canada: Electric Vehicle Affordability Program: Overview