Canada’s new (ish) EV rebate has now officially launched under a new name and revised structure.
Named the Electric Vehicle Affordability Program (EVAP), it replaces the previous federal rebate program (iZEV), which ran out of money last year.
As expected, this program offers similar rates to those of its predecessor; up to $5,000 for battery-electric (BEV) and hydrogen fuel cell vehicles, and up to $2,500 for plug-in hybrid electric vehicles (PHEVs) on both purchases and leases.
As expected, the Government of Canada notes that the incentive amount will decrease gradually over time as the program progresses.
EV eligibility for the program
As expected, there is a price eligibility similar to that of the previous iZEV program.
This time around, EVAP uses what is referred to as the “final transaction value” over MSRP, and defines it as the “negotiated purchase price between the buyer and the dealership.”
The final transaction value also includes the base price and trim, optional packages, paint, upgrades, accessories (roof racks, mats, dashcams, etc.), and dealer admin fees. However, items such as extended warranties, winter tires, chargers, financing costs, taxes, and rebates do not count toward the limit.
To qualify for the program, the purchased or leased vehicle must have a final transaction value of $50,000 or less. However, there is no final transaction value cap on Canadian-made EVs.
There are also different limits for different buyers:
- Individuals can receive one EVAP credit over the five-year program.
- Organizations and businesses can receive up to 10 EVAP incentives over the five-year program, and organizations/businesses owned by the same people (excluding publicly traded companies) will be treated as a single organization, rather than a department or division.
- Not-for-profit organizations, including charities, also receive 10 EVAP incentives.
- Provincial, territorial, and municipal governments with fleets can also receive up to 10 EVAP incentives.
- Car-sharing companies (rental car agencies, etc.) approved by Transport Canada can receive up to 50 EVAP incentives over the calendar year.
The Government of Canada also notes that Transport Canada will be closely monitoring how the incentives are used.
Moreover, people or businesses that don’t meet eligibility rules, receive more incentives than allowed (either during the program or in a single year), or give false/misleading information, must pay back the dealership that gave them the incentive. Dealerships can also take steps to recover the money.
Vehicles that qualify for EVAP
Below is a list of vehicles that are eligible for EVAP incentives.
Battery-electric vehicles eligible for up to $5,000 (2026 unless indicated otherwise)
- Chevrolet Bolt (LT, RS)
- Chevrolet Equinox EV (LT, LT AWD)
- Ford Mach E (Select RWD Standard Range, Select eAWD Standard Range)
- Hyundai Kona EV (Preferred, Preferred w/ Trend, Preferred w/Ultimate)
- Fiat 500e (NEW – Pop, Icona,) (USED – Red, La Prima, Giorgio Armani)
- Dodge Charger (R/T, Scat Pack)
- Toyota bZ (XLE FWD)
- Kia EV4 (LIGHT, WIND, WIND PREMIUM, GT-LINE)
- Kia Niro EV (WIND, WIND+)
- Nissan Leaf (S+, SV+)
- Subaru Uncharted (FWD, FWD LR, Sport)
- 2025 Dodge Charger (R/T, Scat Pack)
- 2025 Kia EV6 (LIGHT rwd)
- 2025 Kia Niro EV (WIND, WIND+)
- 2025 Volkswagen ID.4 (Base)
- 2024 Kia Niro EV (WIND, WIND+)
Plug-in hybrid vehicles eligible for up to $2,500 (2024, 2025, and 2026 models)
- Ford Escape
- Chrysler Pacifica (Select, 100th, Limited, Pinnacle)
- Toyota Prius Plug-in Hybrid (SE, XSE, Nightshade, XSE Premium)
- Kia Niro PHEV (LX, EX, EX Premium),
- Kia Sorento PHEV (LX, EX, EX Premium)
- Mitsubishi Outlander PHEV (ES)
The full list of vehicles can be found here.
While the program officially launches on Apr. 1, 2026, purchases made from Feb. 16, 2026, onward are eligible for rebates, which will be issued when the dealer portal opens on Mar. 31, 2026.
Header image credit: Hyundai
Source: Transportation Canada
