Canada’s Electric Vehicle Affordability Program can provide up to $5,000 for an eligible new battery-electric or hydrogen fuel-cell vehicle in 2026, or up to $2,500 for an eligible plug-in hybrid. Price, origin, vehicle, buyer and transaction rules all apply.
The federal EVAP applies to eligible transactions starting February 16, 2026 and is scheduled to run through March 31, 2031, subject to available funding. Transport Canada reported $2.08 billion remaining as of July 1, 2026. Buyers do not submit their own application: a participating licensed dealer applies and applies the incentive at the point of sale after taxes and fees.
What vehicles and transactions qualify?
- The vehicle must be new, highway-capable, have at least four wheels, weigh less than 8,500 lb and meet Canadian motor-vehicle safety standards.
- It must be bought or leased in Canada from a licensed dealer.
- It must be made in Canada or in a country with which Canada has a free-trade agreement.
- The final transaction value must be $50,000 or less unless the vehicle is made in Canada, in which case the program does not apply that price cap.
- The exact model and trim must appear on Transport Canada’s eligibility list.
The final transaction value includes the base vehicle and trim, factory options, delivery accessories and manufacturer or dealer sale fees. It excludes warranties, insurance, winter tires, chargers, pre-delivery inspection and freight, financing or leasing costs, down payments or trade-ins, government incentives, taxes and government fees. Used EVs are not eligible. A demonstration vehicle with fewer than 10,000 kilometres may qualify if all other rules are met.
2026 incentive amounts and lease rules
| Vehicle | Purchase or 48+ month lease | 24-month lease | 12-month lease |
|---|---|---|---|
| Battery electric or fuel cell | Up to $5,000 | Up to $2,500 | Up to $1,250 |
| Plug-in hybrid | Up to $2,500 | Up to $1,250 | Up to $625 |
An individual can receive one EVAP incentive during the five-year program. Organizations can generally receive up to 10, while approved car-sharing organizations can receive up to 50 per year. A dealer’s approval is valid for 90 days.
Can the federal incentive be stacked?
Yes. EVAP can be combined with an eligible provincial or territorial incentive. The federal program page listed active purchase programs in Manitoba, Quebec and Yukon when checked for this article. Rules and funding can change, and buyers must confirm both programs before signing.
Three simplified buyer examples
Ontario purchase example
Assume an eligible battery-electric vehicle has a final transaction value of $48,000 and qualifies for the 2026 maximum. Ontario HST at 13% is $6,240, producing $54,240 before the federal incentive. Applying a $5,000 EVAP incentive after tax gives an illustrative $49,240. This example includes no Ontario purchase incentive and excludes registration, insurance, financing and any other non-qualifying costs. Actual eligibility and the dealer’s invoice must be confirmed.
Quebec purchase example
Assume an eligible battery-electric vehicle has a final transaction value of $48,000 and qualifies for both maximums. Federal GST at 5% is $2,400 and Quebec sales tax at 9.975% is $4,788, producing $55,188 before incentives. Subtracting an assumed $5,000 federal EVAP amount and an assumed maximum $2,000 Quebec rebate gives an illustrative $48,188. Quebec’s exact model and purchaser rules must be checked; registration, insurance, financing and other fees are excluded. Taxes are shown before the rebates.
24-month lease example
For an eligible battery-electric vehicle, the maximum federal incentive for a 24-month lease is $5,000 ÷ 48 × 24, or $2,500. This example assumes no provincial incentive and does not calculate lease payments, taxes, interest, fees, residual value or down payment. The dealer must confirm the vehicle and transaction.
What buyers should verify before signing
- Check the exact model year, trim and powertrain on Transport Canada’s eligible-vehicle list.
- Ask the dealer to itemize the final transaction value and every excluded charge.
- Confirm the vehicle’s country of manufacture and any price-cap exception.
- Check current provincial or territorial funding separately.
- Make sure the purchase or lease date, term and dealer application meet the program rules.
For more ownership context, see Motorz.ca’s guides to choosing between hybrid and electric power, EV practicality in Northern Ontario and public-charging etiquette.
Sources and limitations
Motorz.ca checked Transport Canada’s EVAP overview, program rules, questions and answers and vehicle list on August 3, 2026. Quebec figures come from the province’s official assistance page.
Program funding, eligible vehicles and provincial incentives can change. The examples are general illustrations, not quotes or personalized financial advice.
Update note: Federal and Quebec rules were verified August 3, 2026. Motorz.ca will review this explainer when incentive amounts, funding, price rules or vehicle eligibility change.