Questions and answers about the Electric Vehicle Affordability Program

The program officially launches on March 31, 2026, and concludes on March 31, 2031.

To help avoid market disruption, eligible EV purchases and leases on or after February 16, 2026, may qualify for an incentive. The program portal will open on March 31, 2026, so dealerships and authorized sellers can submit documentation.

EVAP is more targeted than the iZEV Program and focuses on lowering the cost of EVs in Canada. EVAP focuses on affordable EV models since only purchases or leases with a final transaction value of up to $50,000 are eligible. There’s no limit to the final transaction value for Canadian-made EVs.

Incentive levels will also decline over time , so consumers can make informed purchase decisions while minimizing market disruptions when incentives end in 2031.

The government recognizes that the future of the automotive sector is electric. A key part of Canada’s Automotive Strategy is to help consumers and businesses switch to EVs by addressing the challenges that make it hard to switch. EVAP will help make EVs more affordable, and has been designed to help drive down the cost of EVs in Canada.

EVAP will run from March 31, 2026 to March 31, 2031, unless all the funding is used before then. Funding will be given on a first-come, first-served basis. To avoid disrupting the market, eligible transactions for EV purchases and leases that start on or after February 16, 2026 will be able to get an incentive.

More information for dealerships

The new program will invest up to $2.3B over 5 years with the goal of providing incentives for over 840,000 new EVs. In comparison, the old iZEV Program had $2.9B over 6 years and provided incentives for over 560,000 new EVs.

Transport Canada administers EVAP. To deliver funding, we need to collect personal information to validate that your vehicle transaction is eligible. The personal information we collect is explained in the Consumer Consent Form and the Attestation Form. We only collect the information we need to administer the program, and we manage your personal information according to Canadian law.

The dealership is responsible for having you fill out the Consumer Consent Form and Attestation Form and submitting them to Transport Canada.

All dealerships enrolled in the program must comply with all federal, provincial and territorial privacy laws and regulations, including PIPEDA (the Personal Information Protection and Electronic Documents Act).

Under the Privacy Act, you have the right to access your personal information and ask for your personal information to be corrected. If you want to exercise your rights under the Privacy Act, or have any questions about the privacy notice statement in the Consumer Consent Form, please contact Transport Canada’s ATIP Office.

If you want to file a complaint about how your personal information has been managed, please contact the Office of the Privacy Commissioner of Canada.

If you have any questions for the EVAP team, please:

• email TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca, or
• call 1-800-O-Canada

Canadians and Canadian businesses buying or leasing an EV with a final transaction value of up to $50,000 can get up to $5,000 for battery-electric and fuel-cell electric vehicles, and up to $2,500 for plug-in hybrid electric vehicles, applied by the dealership at the point of sale. The incentive levels will decline over time (for more information on this, see “What does “decline over time’’ mean?”).

There are different limits for different buyers:

• Individuals can receive 1 EVAP incentive over the 5-year program.
• Organizations and businesses can receive up to 10 EVAP incentives over the 5-year program. Organizations and businesses that are owned by the same people (except when the ownership comes from being a publicly traded company) will be treated as one single organization. Together, they can use the program to buy 10 vehicles total. This limit applies to the whole organization, not just to one department or division.
• Not-for-profit organizations, including charities, can receive up to 10 EVAP incentives over the 5-year program. This limit applies to the whole organization, not just to one department or division.
• Provincial, territorial and municipal governments with fleets can receive up to 10 EVAP incentives over the 5-year program. This limit applies to the level of government, not just to one organization. This means that each provincial, territorial or municipal fleet can only use the program to buy 10 vehicles total.
• Eligible carsharing companies approved by Transport Canada can receive up to 50 EVAP incentives per calendar year.

Transport Canada will closely monitor how incentives are used. If we believe that a person or business:

• didn’t meet the eligibility rules
• received more incentives than allowed (either during the program or in a single year), or
• gave false or misleading information

then that person or business must pay back the dealership(s) that gave them the incentive(s). The person or business also agrees that the dealership(s) can take steps to get the money back.

To be eligible under EVAP, a carsharing company must:

• be a non-profit or for-profit organization, registered as a carsharing company in Canada with its own business number
• offer a membership or subscription-based program, where members or subscribers have 24/7 self-service access to a fleet for use at regular intervals (usually with a per-minute or per-hour fee), and
• offer the service to all Canadians and Canadian residents (and not just to specific groups) and have a website or app for enrollment/registration

To apply to be considered an eligible carsharing company under EVAP, please email TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.

Only carsharing companies approved by Transport Canada can receive up to 50 incentives per calendar year for eligible transactions bought or leased on or after February 16, 2026. Transport Canada decides who qualifies and can also choose to end or change a company’s eligibility at any time.

Final transaction value is the final price a buyer agrees to pay when buying or leasing a vehicle. It includes:

• the base price of the vehicle trim (inclusive of incentives or discounts offered by vehicle manufacturers or dealerships)
• optional features, add-ons, and packages added during final assembly
• accessories included at delivery, and
• manufacturer or dealership fees related to the sale

It does not include:

• extended warranties
• Insurance products
• winter tires
• level 2 chargers
• pre-delivery inspection and freight charges
• financing and leasing costs
• down payments or trade-ins, and
• any government incentives, rebates, taxes, or fees

To be eligible for the EVAP incentive, the final transaction value must be $50,000 or less.

The EVAP Vehicle List includes EV models that manufacturers say have a manufacturer suggested retail price (MSRP) of $50,000 or under. But:

• EVs not on this list may still qualify for an incentive if they meet the program criteria, including a final transaction value of $50,000 or less
• The final transaction value (not the MSRP or the list) is what determines if an EV is eligible for an incentive
• For Canadian-made EVs, there is no cap on the final transaction value; they can qualify even if they cost more

Yes, automakers should send vehicle details to Transport Canada so their makes, models and trims can be added to the EVAP Vehicle List to help inform consumers.

We will review each submission to make sure it fits the program’s rules before adding new vehicles to the list. But it’s important to remember that the final transaction value (not the MSRP or the list) is what determines if an EV is eligible for an incentive.

For Canadian-made EVs, there is no cap on the final transaction value; they can qualify even if they cost more.

The new program doesn’t use an “MSRP cap”. In practice, MSRP (manufacturer suggested retail price) is only used to help create the EVAP Vehicle List, a list of EV models that buyers might want to consider.

What really matters is the final transaction value. To qualify for an incentive, the total transaction value must be $50,000 or less. Each purchase or lease will be checked to make sure it stays within the limit.

Some EV models may still qualify for an incentive even if they’re not on the list, as long as the final transaction value agreed on between the buyer and dealer is $50,000 or less.

A few examples:

• Melissa and Joe find an EV model on the EVAP Vehicles List that meets their daily needs. The car has a starting price of $45,000. They choose a high-end trim worth $2,000, a sunroof package for $1,200, and a blue colour worth $600. Since the final transaction value comes to $48,800, this transaction would qualify for an incentive because it’s below the $50,000 cap.
• Mohammed and Samira choose an EV model for their family that has a list price of $49,000. They add winter tires which adds $1,300 to the transaction. Since winter tires are excluded from the final transaction value under EVAP, the final transaction value stays $49,000 and this transaction would qualify for an incentive
• Sarah has her eye on an EV model with a starting price of $49,000. She chooses the highest-end trim, which adds $10,000 to the base price, a technology package worth $5,000, and autonomous driving features worth $4,000. As the final transaction value comes to $68,000, this transaction wouldn’t qualify for an incentive, since it’s well above the $50,000 cap.
• Jim picks an EV that isn’t listed on the EVAP Vehicle List because the MSRP (manufacturer suggested retail price) is $53,000. Since all the options he wants are already included in the $53,000, he doesn’t need to add anything else to the transaction. The manufacturer is also having a huge sale, so a $4,000 rebate is applied to the MSRP. At $49,000, it would qualify for the EVAP incentive since the final transaction value is under $50,000, even though the EV isn’t included on the list.

No. The program has no fees and dealerships can’t charge extra fees for vehicles bought under the program.

If your dealership wants to charge or has charged extra fees for a vehicle you bought under the program, please email Transport Canada: TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.

Incentives will decrease over the program’s 5-year lifespan. They will start at up to $5,000 then drop to up to $4,000 on January 1, 2027, up to $3,000 on January 1, 2028, and up to $2,000 on January 1, 2030.

If you buy or lease* an EV with a final transaction value of $50,000 or less on or after February 16, 2026, you may qualify for an incentive, but there are a few steps involved:

• The dealership must apply to Transport Canada to check if you qualify
  • You must sign a Consumer Consent Form so they can do this for you
• Once approved (valid for 90 days), the incentive is applied directly to your sale/lease agreement after taxes and fees
• This means you get the savings right away, at the time you buy or lease the vehicle

*Transactions initiated prior to February 16, 2026, do not qualify for an incentive, regardless of the delivery date.

Important: You can’t apply for the incentive on your own. Only dealerships can submit claims for it.

For dealerships: How to enroll and submit claims

No, but you must be a Canadian resident, which means that you need to have a home address in Canada.

Yes, transactions for all Canadian-made EVs are eligible for incentives. To support the Canadian automotive industry, the $50,000 final transaction value cap doesn’t apply.

No, both cash purchases and financed purchases (as well as leases of 12 months or more) are eligible for an incentive.

The maximum incentive amount depends on two factors:

1. Fuel type:
   Battery electric vehicles and fuel cell electric vehicles are eligible for an incentive of up to $5,000. Plug-in hybrid vehicles are eligible for an incentive of up to $2,500.
2. Type of transaction:
   Vehicles that are purchased or leased for a term of 48 months or more are eligible for the full incentive amount, based on the fuel type. Leases with a term of 12 months up to less than 48 months are eligible for a reduced incentive.

The EVAP Vehicle List includes the maximum incentive per vehicle.

The incentive will be applied to eligible transactions on top of any provincial/territorial incentive program.

Only EVs made in Canada or in countries that have a free-trade agreement with Canada can get the incentive.

No. Only new EVs bought or leased in Canada from a licensed dealership are eligible.

No, only new EVs are eligible.

A new vehicle means it’s never been registered or plated before – except for demonstrator vehicles. Demonstrator vehicles can be registered and plated to the dealership for test drives or display, but they can still qualify for the incentive when sold or leased to an eligible consumer as long as the odometer reading is less than 10,000 km.

No, 2-wheeled vehicles like motorcycles or e-bikes, aren’t eligible.

The EVAP is focused on cutting emissions from light duty vehicles, so to qualify a vehicle must:

• have at least 4 functioning wheels
• be highway-capable and meant for use on public roads
• meet all Canada Motor Vehicle Safety Standards

No.

If you didn’t receive the full incentive on an eligible transaction made on or after February 16, 2026, you should contact the dealership where you bought or leased the vehicle. If the dealership is participating in the EVAP, they’re responsible for giving you the correct incentive amount at the point-of-sale, directly on the bill of sale or lease agreement.

For leases, the incentive is adjusted based on the length of your lease:

(full incentive amount of the EV ÷ 48) x (number of months of the lease)

If you have any questions or concerns specific to your situation, please email TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.

Please note that dealership participation in the EVAP is strictly voluntary; Transport Canada cannot require dealerships to participate in the program.

If your dealership mentioned the incentive to you but you did not receive it directly on the bill of sale or lease agreement for an eligible transaction completed on February 16, 2026:

• Contact the dealership where you purchased or leased the vehicle to inform them that the incentive is not included on your bill of sale or lease agreement
• If they agree to rectify the situation, you will need to sign Consumer Consent Form so they can check your eligibility
• Once you’re confirmed as eligible:
  • The dealership can give you the incentive by cheque or another method
• You will also need to complete and sign an Attestation Form

Remember: Only a dealership can submit claims. You can’t apply for the incentive yourself.

If you need more help or have questions, please email TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.

If you received an incentive for an EV that was later

• written-off (total loss)
• part of a manufacturer buybacks, or
• involved in another situation that Transport Canada considers reasonable,

you may be allowed to receive a second incentive, but only with pre-approval.

This rule also applies to businesses, organizations, and car sharing companies.

Please contact Transport Canada for more information on how to proceed in this situation by emailing TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.

Transactions for EVs with an odometer with less than 10,000 km qualify.

Yes, the incentive can be used for eligible lease transactions that are 12 months or longer, but the incentive amount changes based on the lease length.

For lease terms not listed in the table, use this formula to calculate the incentive:

(full incentive amount of the EV ÷ 48) x (number of months of the lease)

For the purposes of the EVAP, the discounts are treated the same whether they are applied before tax or after tax on the bill of sale or lease agreement. The full value of the discount must be deducted when calculating the final transaction value.

Examples:

• An EV model has a starting price of $50,500 before any discounts are applied. The manufacturer or dealership provides a $4,000 discount applied before tax. For the purpose of the EVAP eligibility, the full discount amount ($4,000) is deducted from the starting price, resulting in a final transaction value of $46,500.
• An EV model has a starting price of $50,500 before any discounts are applied. The manufacturer or dealership provides a $4,000 discount applied after tax. For the purpose of the EVAP eligibility, the full discount amount ($4,000) is still deducted from the starting price, resulting in a final transaction value of $46,500.

Yes, third-party leases are eligible. There are 2 ways third-party leasing companies (or fleet management companies) can take part.

Option 1: The incentive goes to the third-party leasing company through the dealership.

• Dealership provides incentive and submits the eligibility request to Transport Canada
• The third-party leasing company receives the vehicle and acts at the end user
• The purchase counts towards the leasing companies’ maximum of 10 incentives for the life of the program
• The leasing company must complete the Consumer Consent and Attestation Form

Option 2: The third-party becomes the authorized seller

• The third-party leasing company enrolls with Transport Canada and gives the incentive directly to their lessee (customer)
• The leasing company submits the eligibility request and reimbursement claims themselves
• The original dealership is not involved in the incentive process
• The lessee receives the incentive and must complete the Consumer Consent and Attestation Form
• The lessee counts towards the total number of incentives allowed

For third-party leasing companies: How to enroll and submit claims

If you’re having problems connecting to your account, please email TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca.