The federal government has officially launched the Electric Vehicle Affordability Program (EVAP), a new initiative designed to make zero-emission driving more accessible. Starting February 16, 2026, Canadians can receive up to $5,000 off the purchase or lease of an eligible electric vehicle directly at the point of sale.
Unlike the previous iZEV program, EVAP is more targeted, focusing specifically on vehicles with a “final transaction value” of $50,000 or less. This total includes all options, destination fees, and dealership charges. However, a major exception exists for Canadian-made EVs, such as the Chrysler Pacifica PHEV, which have no price cap at all and qualify regardless of the final cost.
The program offers two tiers of savings depending on the type of vehicle you choose. These amounts are at their highest in 2026 and will gradually decrease each year until the program ends in 2031:
For those leasing, the full incentive is available for 48-month terms, while shorter leases are prorated.
Here is the current list of vehicles confirmed for the program as of February 2026.
Battery-Electric Vehicles (Up to $5,000)
Plug-in Hybrid Vehicles (Up to $2,500)
Which EVs and PHEVs from these lists would you consider buying?
Notably absent from the current eligibility list is Tesla and its newer Model Y Standard Range. While its base MSRP is $49,990 CAD, it currently fails to qualify because the “final transaction value” exceeds the $50,000 threshold.
Once you add the $2,500 destination fee, the $20 OMVIC fee, the $20 tire fee, and the $100 federal air conditioning tax, the price climbs to $52,632 before sales tax. Tesla may choose to adjust its pricing or fee structure in the coming weeks to bring the total under the limit and qualify for the $5,000 rebate. Last time Tesla’s pricing and production let it dominate iZEV rebates.
The government is investing $2.3 billion into EVAP over the next five years, with the goal of putting 840,000 new EVs on Canadian roads. This is a more aggressive push than the old iZEV program, which spent $2.9 billion over six years to support 560,000 vehicles. By focusing on more affordable models and phasing out incentives by 2031, the government claims it will drive down the cost of electric transport while giving consumers a clear timeline to make the switch.
Dealerships can submit new models for review as they hit the market, provided they meet the strict $50,000 final value cap for imported cars.
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