On this page
- About the incentives
- Eligibility criteria
- How to get the incentive
- Information for carsharing companies
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 electric vehicle. Incentives are available to Canadians who buy or lease (12 months or more) new eligible electric vehicles between February 16, 2026, and March 31, 2031, or earlier if available funding is fully used.
Incentives for leased vehicles
The incentive amount depends on the length of the lease. Only leases of 12+ months are eligible for an incentive. If the lease is 48 months or more, 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.
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 incentive amount is based on the date the dealership or authorized seller submits the eligibility assessment through the program portal. As incentive levels decrease over time, the amount you receive will depend on when the assessment is submitted, not the date you bought or leased the vehicle.
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 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 closely monitors how incentives are used and will recover the incentive amount from the dealership or authorized seller 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
Under the Attestation Form (PDF, 193 KB), the recipient has agreed to reimburse the dealership or authorized seller, which can take steps to get the money back.
Eligibility criteria
To be eligible for an incentive, a vehicle must:
- be bought or leased on or after February 16, 2026 (transactions before February 16, 2026 do not qualify for an incentive, regardless of the delivery date)
- have a final transaction value of $50,000 or less, unless it’s made in Canada, then there’s no cap
- be made in Canada or in countries that have a free-trade agreement with Canada
- be a light-duty vehicle (under 8,500 pounds)
- meet all of Canada’s Motor Vehicle Safety Standards
- be highway-capable (no low-speed vehicles) and meant for use on public roads
- have at least 4 functioning wheels, and
- be a new vehicle, meaning the vehicle is being registered for the first time
- Demonstrator vehicles with an odometer with less than 10,000 km are eligible
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 (PDF, 220 KB), and then, they will send it to Transport Canada.
If you qualify, you will need to review and sign the Attestation Form (PDF, 193 KB). 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.
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.
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 enrolment/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.