Updated August 2026 · Verified against Transport Canada guidelines
✨ New Program ✓ First-Timer Friendly Advance Payment Est. 2026
Grant Federal Active

Electric Vehicle Affordability Program (EVAP)

Transport Canada
Maximum Funding
Up to $5,000
Ongoing (February 16, 2026 to March 31, 2031) — applied automatically at poin...
Visit Official Program →
Difficulty
Easy
Payment
Advance Payment
Trend
New Program
First-Timers
Friendly ✓
Co-Funding
100%
Electric Vehicle Affordability Program (EVAP) provides Up to $5,000 per BEV/FCEV; up to $2,500 per PHEV (2026 levels; declining to $2,000 / $1,000 by 2030-2031). Lease incentives are prorated by lease length — a 48-month lease earns the full amount, 36 months 75%, 24 months 50%, 12 months 25%. Point-of-sale incentive of up to $5,000 for battery-electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), or up to $2,500 for plug-in hybrid electric vehicles (PHEVs), at 2026 levels — the levels step down over the program to 2031. Applications are accepted on an ongoing basis.
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Eligibility & Details

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Program Description

Point-of-sale incentive of up to $5,000 for battery-electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), or up to $2,500 for plug-in hybrid electric vehicles (PHEVs), at 2026 levels — the levels step down over the program to 2031. Replaces the former iZEV program effective February 16, 2026. Applied automatically as a discount at participating dealerships — no separate application required. The program does not use an MSRP cap: eligibility turns on the vehicle's final transaction value being $50,000 or less, and that cap is waived for Canadian-made vehicles. Available to both individuals and businesses. Note: this is a consumer vehicle rebate delivered through dealerships at point of sale, not a direct business development grant — businesses benefit as vehicle purchasers (e.g. fleet buyers), not as grant recipients, and there is no application to submit.

Eligibility Requirements

  • Individuals, Canadian organizations and businesses purchasing or leasing eligible new zero-emission vehicles
  • Vehicle's final transaction value must be $50,000 or less (no cap for Canadian-made vehicles) — the program does not use an MSRP cap
  • Vehicle must be light-duty (under 8,500 pounds)
  • Vehicle must be made in Canada or in a country that has a free-trade agreement with Canada
  • Vehicle must meet all of Canada's Motor Vehicle Safety Standards, be highway-capable (no low-speed vehicles) and have at least 4 functioning wheels
  • Vehicle must be new and not previously registered — except demonstrator vehicles, which qualify with an odometer reading under 10,000 km
  • Must purchase or lease from a participating dealer
Provinces
Industries
Clean Technology Supply Chain Services
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Friendly

Funding Details

Amount
Up to $5,000 per BEV/FCEV; up to $2,500 per PHEV (2026 levels; declining to $2,000 / $1,000 by 2030-2031). Lease incentives are prorated by lease length — a 48-month lease earns the full amount, 36 months 75%, 24 months 50%, 12 months 25%.
Type
Grant
Level
Federal
Co-Funding
Up to 100% of eligible costs
Deadline
Ongoing (February 16, 2026 to March 31, 2031) — applied automatically at point of sale. As of July 1, 2026, $2.08B of the $2.275B budget remains available.

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Mar 31, 2031
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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What's in this Playbook

Everything you need to win EVAP

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How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

Applied automatically as a point-of-sale discount at participating dealers — no application form needed.

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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Choose an Eligible Vehicle Select a new battery-electric, fuel cell electric, or plug-in hybrid vehicle that meets EVAP criteria. Check the EVAP Vehicle List on Transport Canada's website for eligible models. The final transaction value must be $50,000 or less (no cap for Canadian-made vehicles).

Required Documents 3

Completed dealer point-of-sale form
Vehicle purchase or lease agreement

Eligible Expenses 5

Ineligible Expenses 6

Intake Periods

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Quebec EV Rebate Program (Roulez Vert) BC SCRAP-IT / CleanBC Go Electric Consumer Rebate Nova Scotia EV Rebate CleanBC Go Electric Commercial Programs
Combined Funding Potential See your total funding potential

Clawback Risk

Low Risk
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How EVAP Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
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Alberta Innovation Employment Grant up to $4M Hard Tax Credit Offset Ongoing

Related Programs

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Frequently Asked Questions

Quick answers to the questions founders most often ask about EVAP

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Can businesses apply for EVAP on fleet purchases?
Yes, businesses can apply for EVAP on new zero-emission vehicles purchased or leased for business use. The program applies automatically at point of sale for eligible fleet vehicles, no separate application needed.
What's the realistic rebate amount for a Canadian-made EV?
Canadian-made EVs are exempt from the $50,000 final-transaction-value cap, so they can qualify at any price — the entries the official EVAP Vehicle List flags as Canadian-made are Chrysler Pacifica and Dodge Charger trims. The incentive itself is unchanged: up to $5,000 for a BEV/FCEV and up to $2,500 for a PHEV in 2026, declining in later program years.
Do I need to apply separately for EVAP?
No — EVAP is applied automatically as a point-of-sale discount at participating dealerships. No application form or separate submission is required.
Can I stack EVAP with provincial rebates?
Yes, EVAP stacks with provincial programs like Quebec's Roulez Vert (up to $7,000) and BC's CleanBC Go Electric (up to $4,000) for new EVs.
Why might my EV purchase not qualify?
The final transaction value exceeds $50,000 and the vehicle is not Canadian-made, the vehicle is used or previously registered, it is not on the EVAP Vehicle List, it is not light-duty (8,500 lb or more), or it was built in a country without a free-trade agreement with Canada.

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