EV Rebates in Canada: the New EVAP Program and What Is Left Provincially
If you have been waiting to buy an electric vehicle (battery electric vehicle, or BEV) in Canada, the rebate picture changed twice in just over a year. The old federal program, iZEV, ran out of money and closed in early 2025, and for most of that year there was no federal rebate at all. Then on 16 February 2026 a new federal program, the Electric Vehicle Affordability Program (EVAP), came into effect, and it works differently from the one it replaced. On top of that, the provincial programs that used to stack on the federal rebate have mostly wound down, with Quebec the main survivor. This guide explains how EVAP works, who qualifies, what the price cap means, which provincial programs are still paying in 2026, and how a rebate fits alongside the day-to-day charging savings the calculator shows. Because rebate rules change quickly and EVAP amounts step down every January, every figure below is dated and sourced, and you should confirm the live amount with Transport Canada and your province before you sign anything.
By mht-dev, Frontend Engineer & Creator
A frontend engineer who bought a first electric car in March 2026 and built EV Charge Calculator while working out the real cost of charging it, writing every guide from an everyday new EV owner's perspective.
What happened to iZEV, and why EVAP replaced it
The previous federal rebate was the Incentives for Zero-Emission Vehicles program, iZEV, which had run since 2019 and paid up to $5,000 toward an eligible new BEV. A late surge in demand drained the remaining budget far ahead of schedule. The government confirmed in January 2025 that the program was ending, applications were paused on 12 January 2025, and the program formally closed on its scheduled date of 31 March 2025 once funds were exhausted. For most of 2025 there was no federal purchase rebate. Source: Transport Canada, "Closed: Incentives for Zero-Emission Vehicles (iZEV)" (https://tc.canada.ca/), and Electric Autonomy (https://electricautonomy.ca/), as of 2026-06-04.
The replacement, the Electric Vehicle Affordability Program (EVAP), came into effect on 16 February 2026. It is funded at $2.275 billion over five years, and as of 1 June 2026 Transport Canada reported about $2.131 billion still remaining, so the money is not on the verge of running out the way iZEV's was. The headline difference from iZEV is the focus on affordability: EVAP is built around a price cap and a Canada-build priority rather than paying the same amount on any eligible EV. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" overview (https://tc.canada.ca/), and The Globe and Mail (https://www.theglobeandmail.com/), as of 2026-06-04.
How much EVAP pays, and the step-down each year
For a purchase or eligible lease in 2026, EVAP pays up to $5,000 for a battery electric or hydrogen fuel-cell vehicle, and up to $2,500 for a plug-in hybrid (PHEV). Unlike a tax credit you claim later, the rebate is applied at the point of sale by an enrolled dealer, so it comes straight off the bill of sale or lease agreement and you pay the reduced price up front. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" (https://tc.canada.ca/), as of 2026-06-04.
The amounts are scheduled to step down every year, which is the single most important timing fact for a buyer. From 1 January 2027 the BEV and fuel-cell amount drops to $4,000 and the PHEV amount to $2,000. In 2028 and 2029 they fall to $3,000 and $1,500, and in 2030 and 2031 to $2,000 and $1,000. The program runs until 31 March 2031, subject to funding. So a BEV bought in 2026 captures the maximum $5,000; waiting into 2027 means a smaller rebate even if nothing else changes. Source: Transport Canada EVAP program details (https://tc.canada.ca/), as of 2026-06-04. Confirm the current-year amount before you buy, because these figures are set by the program year.
The price cap and the Canada-build waiver
EVAP is means-tested on the car, not the buyer. To qualify, the final transaction value must be $50,000 or less. That is the actual transaction value, not just the sticker price, so options, fees, and the like count toward it. There is one big exception: there is no final-transaction-value limit on EVs that are made in Canada, so a Canada-built EV can qualify even above $50,000. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" (https://tc.canada.ca/), as of 2026-06-04. This is the design choice that makes EVAP an affordability and domestic-manufacturing program rather than a flat subsidy.
On top of the price cap, the vehicle has to be eligible by build origin and class. It must be made in Canada or in a country that has a free-trade agreement with Canada, it must be a new light-duty vehicle (under 8,500 pounds), and a lease has to run 12 months or more to count. The eligible models are listed by Transport Canada and the list changes as models are added, so check the official vehicle list for the car you want rather than assuming. Individuals can receive only one EVAP incentive over the five-year program, so it is worth using it on the purchase where it matters most. Source: Transport Canada EVAP overview and vehicle list (https://tc.canada.ca/), as of 2026-06-04.
Provincial rebates that still stack in 2026
The provincial layer used to add thousands on top of the federal rebate, but most of it has wound down. Quebec is the main survivor: its Roulez vert program still pays $2,000 toward a new BEV, but only if the manufacturer's suggested retail price is under $65,000, and the program is set to end on 31 December 2026, with the vehicle needing to be registered before that date. A used eligible EV gets $1,000. Quebec's amount was halved from the previous $4,000 at the start of 2026, which is a good illustration of how fast these figures move. Source: Government of Quebec, Roulez vert "Amount of the financial assistance for a new electric vehicle" (https://www.quebec.ca/), as of 2026-06-04.
British Columbia, which had one of the most generous provincial purchase rebates, paused its CleanBC Go Electric passenger-vehicle purchase rebate from 15 May 2025 and it is no longer paying for new purchases, although a separate rebate of up to $350 toward a home charger has continued. Several other provinces have closed their purchase programs too: New Brunswick ended its program on 1 July 2025, Nova Scotia's light-duty EV rebate closed in 2025, Yukon's rebate ended for vehicles purchased after 31 March 2026, and Manitoba's ended on 31 March 2026. Prince Edward Island is a notable exception that was still paying in 2026, with a rebate of $4,000 for an eligible new or used BEV and $2,000 for a PHEV. Provincial programs open and close frequently, so check your own province's official page for what is current. Sources: Government of British Columbia EV rebate "Program Paused" notice (https://electric-vehicle-rebates.gov.bc.ca/), and provincial program notices summarized by Electric Autonomy (https://electricautonomy.ca/) and evsearch.ca, as of 2026-06-04.
How a rebate fits with your charging savings
A rebate lowers the price you pay once, at purchase. The other half of the EV value story is the running cost, which shows up every time you charge. In Canada that running cost varies a lot by province, because residential electricity is far cheaper in Quebec than in most of the country, and charging at home overnight is much cheaper than using a public DC fast charger. To see what charging your specific car would actually cost on your own electricity rate, put your numbers into the calculator at /ca. For the home side in detail, including the wide provincial rate spread, see the companion guide on the cost to charge an EV at home in Canada. The cleanest way to think about it is to treat the EVAP rebate as a one-time discount on the purchase and the charging savings as the ongoing saving, and to add both up over the years you expect to keep the car.
Sources and further reading
Transport Canada, "Electric Vehicle Affordability Program (EVAP)," the primary source for the 16 February 2026 start date, the up-to-$5,000 BEV and up-to-$2,500 PHEV amounts for 2026, the annual step-down, the $50,000 final-transaction-value cap and its Canada-build waiver, the made-in-Canada-or-free-trade-agreement and light-duty eligibility, the point-of-sale process, and the one-incentive-per-individual rule (as of 2026-06-04): https://tc.canada.ca/.
Transport Canada, "Closed: Incentives for Zero-Emission Vehicles (iZEV)," for the closure of the old federal program (paused 12 January 2025, scheduled close 31 March 2025, funds exhausted), and The Globe and Mail, "Canada's new $5,000 EV incentive is different from the old one," for the contrast between iZEV and EVAP (both as of 2026-06-04): https://tc.canada.ca/ and https://www.theglobeandmail.com/.
Government of Quebec, Roulez vert "Amount of the financial assistance for a new electric vehicle," for the $2,000 new-BEV amount, the under-$65,000 MSRP condition, and the 31 December 2026 end date (as of 2026-06-04): https://www.quebec.ca/. Government of British Columbia EV rebate "Program Paused" notice for the paused CleanBC purchase rebate (as of 2026-06-04): https://electric-vehicle-rebates.gov.bc.ca/.
Electric Autonomy (https://electricautonomy.ca/) and evsearch.ca for the cross-province summary of which provincial programs are still active in 2026, as of 2026-06-04. Rebate programs change quickly, so always confirm the live amount and eligibility with Transport Canada and your provincial program before you rely on it. This guide is general information, not tax, legal, or financial advice.
Frequently asked questions
Is there still a federal EV rebate in Canada?
- Yes. The old iZEV program closed in early 2025 when its funds ran out, but a new federal program, the Electric Vehicle Affordability Program (EVAP), came into effect on 16 February 2026. For 2026 it pays up to $5,000 toward an eligible new BEV or fuel-cell vehicle and up to $2,500 toward a PHEV, applied at the dealer at the point of sale. The amounts step down each year from 1 January 2027. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" (https://tc.canada.ca/), as of 2026-06-04.
How much is the EVAP rebate, and does it change?
- For a purchase or eligible lease in 2026 it is up to $5,000 for a battery electric or fuel-cell vehicle and up to $2,500 for a plug-in hybrid. The amounts are scheduled to drop every year: to $4,000 and $2,000 from 1 January 2027, then $3,000 and $1,500 in 2028 and 2029, and $2,000 and $1,000 in 2030 and 2031. The program runs to 31 March 2031, subject to funding, so buying earlier captures a larger rebate. Source: Transport Canada EVAP program details (https://tc.canada.ca/), as of 2026-06-04.
What is the price cap for the EVAP rebate?
- The final transaction value of the vehicle must be $50,000 or less to qualify. That is the actual transaction value, so it includes options and fees, not just the base sticker price. There is one exception: there is no transaction-value limit on EVs made in Canada, so a Canada-built EV can qualify even above $50,000. The car must also be made in Canada or a free-trade-agreement country and be a new light-duty vehicle under 8,500 pounds. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" (https://tc.canada.ca/), as of 2026-06-04.
Which provinces still pay an EV rebate in 2026?
- Most provincial purchase rebates have wound down, so check your own province. As of 2026-06-04, Quebec's Roulez vert still pays $2,000 toward a new BEV priced under $65,000 until 31 December 2026, and Prince Edward Island was still paying $4,000 for an eligible new or used BEV. British Columbia paused its purchase rebate from 15 May 2025 (a home-charger rebate of up to $350 continued), and New Brunswick, Nova Scotia, Yukon, and Manitoba have all closed their purchase programs. Sources: Government of Quebec (https://www.quebec.ca/), Government of British Columbia (https://electric-vehicle-rebates.gov.bc.ca/), and Electric Autonomy (https://electricautonomy.ca/), as of 2026-06-04.
How do I actually get the EVAP rebate?
- You do not apply for it yourself. EVAP is a point-of-sale rebate, so an enrolled dealer or authorized seller handles it: they have you complete the consumer consent form, submit it to Transport Canada, and if you qualify the incentive is applied directly to your bill of sale or lease agreement, so you pay the reduced price. Individuals can receive only one EVAP incentive over the five-year program. Source: Transport Canada, "Electric Vehicle Affordability Program (EVAP)" (https://tc.canada.ca/), as of 2026-06-04.