Electric Vehicle Affordability Program: Questions and answers

The program started on March 31, 2026, and will end on March 31, 2031, or earlier if available funding is fully used.

To avoid disrupting the market, eligible electric vehicles bought or leased on or after February 16, 2026, may qualify for an incentive.

Funding will be given on a first-come, first-served basis.

EVAP is more targeted than the iZEV Program and focuses on lowering the cost of electric vehicles in Canada.

EVAP focuses on affordable models. There’s no price cap for electric vehicles made in Canada, whereas other must have a final transaction value of $50,000 or less to be eligible.

Incentive levels will also decline over time. This approach will help consumers plan their purchase decisions and will minimize 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 electric vehicles by addressing the challenges that make it hard to switch. EVAP will help make electric vehicles more affordable and has been designed to help drive down the cost of electric vehicles in Canada.

The government will invest up to $2.3B over 5 years to support the purchase and lease of more than 840,000 new electric vehicles through incentives.

In comparison, the previous iZEV Program received $2.9B over 6 years and provided incentives for over 560,000 new electric vehicles.

No, the program is free 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.

If you have any questions for the EVAP team, please send us an email at TC.EVaffordability-abordabiliteVE.TC@tc.gc.ca

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 electric vehicle ÷ 48) x (number of months of the lease)

Final transaction value is the total amount based on the vehicle-related charges included in the list below. Included items (Inclusions)are counted in the calculation, whether they increase or decrease the price. Excluded items (Exclusions) are not counted and don’t affect the final transaction value.

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

For the purposes of the EVAP, the discounts are treated the same whether they are applied before 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 electric vehicle 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 electric vehicle 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

The EVAP vehicle list includes electric vehicle models that manufacturers say have a manufacturer suggested retail price (MSRP) of $50,000 or under, but:

• electric vehicles 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 electric vehicle is eligible for an incentive
• for Canadian-made electric vehicles, there is no cap on the final transaction value; they can qualify even if they cost more

The EVAP 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 electric vehicles 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, even if the electric vehicle isn’t on the list. Each purchase or lease will be checked to make sure it stays within the limit.

A few examples:

• Melissa and Joe find an electric vehicle model on the EVAP Vehicles List that meets their daily needs. The car has a starting price of $45,000. They chose 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 electric vehicle 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 an eye on an electric vehicle 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 above the $50,000 cap
• Jim picks an electric vehicle 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 offering a discount, which translates to a $4,000 rebate 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 electric vehicle isn’t included on the list

If an electric vehicle is purchased or leased on or after February 16, 2026, and the final transaction value is $50,000 or less, an incentive may be available. Here’s how it works:

• The dealership must apply to Transport Canada to check if you qualify
  • You must sign a Consumer Consent Form (PDF, 220 KB) for this step
• Once your eligibility is validated (valid for 90 days), the dealership will apply the incentive directly to your sale/lease agreement after taxes and fees

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

Important: Only dealerships can submit requests on behalf of their clients.

For dealerships: How to enrol and submit claims

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

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 terms between 12 months and 47 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 electric vehicles bought or leased in Canada from a licensed dealership are eligible.

No, only new electric vehicles 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, and 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 lightduty 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

Yes, third-party leases are eligible. There are two 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 (PDF, 220 KB) and Attestation Form (PDF, 193 KB)

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 (PDF, 220 KB) and Attestation Form (PDF, 193 KB)
• The lessee counts towards the total number of incentives allowed

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

No. Once the incentive has been approved and applied to the transaction, it cannot be returned.

If the full incentive was not applied to an eligible transaction made on or after February 16, 2026, contact the dealership where the vehicle was purchased or leased.

If the dealership participates in the program, it is responsible for applying the correct incentive amount at the point of sale, directly on the bill of sale or lease agreement.

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 the Consumer Consent Form (PDF, 220 KB) 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 (PDF, 193 KB)

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 an incentive was received for an electric vehicle that is later declared a total loss, bought back by the manufacturer, or affected by another situation considered reasonable, a second incentive may be granted with prior approval from Transport Canada.

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

Transport Canada administers the EVAP and collects certain personal information to validate the eligibility of reimbursement requests related to the purchase or lease of an electric vehicle.

The personal information collected is outlined in the Consumer Consent Form (PDF, 220 KB) and the Attestation Form (PDF, 193 KB). Only the information needed to administer the program is collected, and it is managed in accordance with Canadian law.

The dealership is responsible for having its customers fill out the Consumer Consent Form (PDF, 220 KB) and the Attestation Form (PDF, 193 KB) 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 (PDF, 220 KB), 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.