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About the incentives
The Electric Vehicle Affordability Program (EVAP) offers point-of-sale incentives for Canadians, Canadian organizations and businesses who buy or lease an eligible EV. To be eligible, EVs must:
- be light-duty vehicles (under 8,500 pounds)
- be made in Canada or in countries that have a free-trade agreement with Canada, and
- have a final transaction value of up to $50,000 (unless it’s made in Canada, then there’s no cap)
See information on the EVAP eligibility criteria and a list of EVs that Canadians could consider.
Incentives will be available to Canadians who buy or lease (12 months or more) new eligible EVs between February 16, 2026, and March 31, 2031 (subject to funding availability).
Note: The incentive amount depends on the length of the lease. If the lease is 48 months, the full incentive amount will be issued. If the lease is shorter, the incentive will be prorated (adjusted) based on the length of the lease. For example, a 24-month lease would get half the incentive.
Levels of incentives
There are two levels of incentives that will decrease over the program’s 5-year lifespan:
- Battery electric vehicles and hydrogen fuel cell vehicles are eligible for up to $5,000
- Plug-in hybrid electric vehicles are eligible for up to $2,500
Between 2026 and 2031, incentive amounts will gradually decrease for all eligible vehicle types. During this period, incentives for battery-electric and fuel cell electric vehicles will decrease from up to $5,000 to up to $2,000, and incentives for plug-in hybrid vehicles will decrease from up to $2,500 to up to $1,000, as detailed in the table below:
| Type of vehicle | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
|---|---|---|---|---|---|---|
| Battery-electric and fuel cell electric vehicles | $5,000 | $4,000 | $3,000 | $3,000 | $2,000 | $2,000 |
| Plug-in hybrid vehicles | $2,500 | $2,000 | $1,500 | $1,500 | $1,000 | $1,000 |
Note: The level of incentives will be determined based on the submission date of the eligibility assessment.
Incentive limits
There are different limits for different recipients:
- 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
- Provincial, territorial and municipal governments with fleets can receive up to 10 EVAP incentives over the 5-year program
- 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 it’s determined that a person or business:
- didn’t meet the eligibility rules
- received more incentives than allowed, or
- gave false or misleading information
Transport Canada will recover the incentive amount from the dealership or authorized seller. Under the Attestation Form, the recipient has agreed to reimburse the dealership or authorized seller, which can take steps to get the money back.
How to get the incentive
The incentive will be applied at the point-of-sale by a dealership or authorized seller once they have confirmed both you and the vehicle qualify.
To check if you qualify, the dealership or the authorized seller will have you complete the Consumer Consent Form, and then, they will send it to Transport Canada.
If you qualify, you will need to sign the Attestation Form. After that, the incentive will be applied directly to your bill of sale or lease agreement
The dealership or authorized seller will apply taxes and fees first, then apply the incentive.
You should not have to pay a deposit to get the incentive, and the incentive should not be reimbursed in the form of a cheque at a later date. The incentive should be applied right away when you buy or lease the vehicle.
The dealership or authorized seller must submit the required documents to be reimbursed. Consumers can’t apply to get the incentive themselves. Only enrolled dealerships and authorized sellers can do that.
The federal incentive will be applied to eligible transactions on top of any provincial or territorial incentive program.
Information for carsharing companies
To be eligible under the 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 application for enrollment/registration
To apply to be considered an eligible carsharing company under the 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.