What is the EVAP?

The EVAP, or Electric Vehicle Affordability Program, is a program that aims to support Transport Canada's Green and Innovative Transportation System Core Responsibility and reduce harmful air emissions, while also encouraging the adoption of light-duty electric vehicles (EVs) by Canadian consumers and businesses. Furthermore, the EVAP specifically prioritizes Canadian-made electric vehicles by offering incentives regardless of their selling price.

What do you mean by EVs?

Under the EVAP, EVs include:

• BEVs: Battery Electric Vehicles
• FCEVs: Fuel Cell Electric Vehicles
• PHEVs: Plug-in Hybrid Electric Vehicles

Which types of vehicles qualify for the EVAP?

New, unregistered EVs, defined as light-duty vehicles under 8,500 lbs., that have a final transaction value of $50,000 or lower are eligible under the EVAP. EVs that are manufactured in Canada are not subject to a final transaction value cap.

Vehicles must have at least four functioning wheels and be highway capable, intended for use on public streets, roads, and highways, and meet all Canada Motor Vehicle Safety Standards in order to be eligible.

What does ‘final transaction value’ mean?

The final transaction value is the total amount the recipient agrees to pay upon the purchase or lease of an EV. It includes the base price of the vehicle trim, optional features, add-ons, and packages installed at the time of final assembly, accessories included at the time of delivery, and any manufacturer or dealership fees associated with the transaction.

Extended warranties, winter tires, pre-delivery inspection and freight charges, financing and leasing costs, cash deposit, vehicle trade-in, and any government incentives, rebates, taxes, or fees and level 2 chargers, are not included into the final transaction value.

All Canadian-manufactured EVs are exempt from the final transaction value cap.

Where can I find a list of eligible vehicles?

For a list of vehicles eligible for incentives under the EVAP, please visit the Transport Canada website or see our EV inventory with the green rebate labels.

How much are the rebates?

Any eligible Battery Electric Vehicle (BEV) or Fuel Cell Electric Vehicle (FCEV) will receive a maximum rebate of up to $5,000. Any eligible Plug-in Hybrid Electric Vehicles (PHEV) will receive a maximum rebate of up to $2,500.

Are all EVs $50,000 or lower eligible for the EVAP?

Only EVs that are manufactured in Canada or in the countries with which Canada has existing free-trade agreements are eligible for the Program.

What countries does Canada have an existing free-trade agreement with?

• United States and Mexico — CUSMA agreement
• Australia, Chile, Japan, Mexico, New Zealand, Vietnam and others — CPTPP agreement
• All European Union member states — CETA agreement
• United Kingdom — TCA agreement
• South Korea — CKFTA agreement

When does the Program start and end?

The EVAP applies to vehicles purchased or leased on or after February 16, 2026. It is scheduled to run until March 31, 2031, or until available funding has been distributed. Rebates will be provided on a first-come-first served basis and will be dependent on the ongoing availability of funds.

Do I have to apply for the incentives?

You don’t have to apply. To streamline the process, any EVAP rebates will be applied at the point of sale by the dealership. The dealer reduces the final transaction value of your purchase or lease according to the eligible rebate on that vehicle. The dealer will then apply for reimbursement from the government.

How do I know I’m eligible as a consumer?

Under the EVAP, the vehicle purchaser or lessor must be a Canadian resident, business/organization or carsharing company that is registered to operate in Canada, or in a provincial, territorial or municipal government and their agencies. The vehicle must also be purchased or leased in Canada. Federal government departments, federal crown corporations, and foreign entities are not eligible.

Each individual may only receive a maximum of one (1) EVAP incentive during the Program’s duration. For-profit and not-for-profit organizations, including charities, that operate in Canada have a limit of ten (10) EVAP incentives during the Program’s duration.

Where can I buy or lease an eligible vehicle?

Vehicles must be purchased or leased through an authorized new car dealership within Canada.

Can I get a rebate for a used or demonstrator EV?

Used cars are not eligible for the EVAP. Only new vehicles that have never previously been registered and plated are eligible.

Demonstrator vehicles are eligible as long as the registration is being done in a consumer's name for the first time, with an odometer reading under 10,000 km. The vehicle must be clearly identified as a "demonstrator" in the sale or lease agreement.

How long must I lease a vehicle to qualify?

Lease terms must be for a duration of 12 months or more. The rebate amount provided will be prorated based on the length of the lease as follows:

This means a 48-month lease is eligible for the full rebate amount, and a 24-month lease will be eligible for half that amount for the eligible EV.