Canada’s former iZEV rebate program closed on March 31, 2025, but federal EV incentives have since returned under a different program. The Electric Vehicle Affordability Program (EVAP) covers qualifying purchase or lease transactions made on or after February 16, 2026. Its funding is finite, so a rebate is not guaranteed indefinitely.
Is there still an EV rebate in Canada?
Yes. The old Incentives for Zero-Emission Vehicles (iZEV) program is closed, but EVAP is active for eligible transactions made on or after February 16, 2026. Transport Canada says EVAP is scheduled to run until March 31, 2031, or earlier if its funding is exhausted. Its current overview says qualifying light-duty EVs may receive up to $5,000 in 2026, subject to vehicle and transaction rules. Transport Canada’s EVAP page provides the current program details.
That means “Canada ended its EV incentive” is no longer an accurate description of current federal policy. The more precise concern is that the new incentive has eligibility limits and a finite budget, making its future availability uncertain.
What changed between iZEV and EVAP?
| Program | Timing | What buyers should know |
|---|---|---|
| iZEV | Launched in 2019; formally closed March 31, 2025 | Offered point-of-sale incentives of up to $5,000 for eligible vehicles. Longer-range plug-in hybrids with at least 50 km of electric range were in the up-to-$5,000 tier; shorter-range plug-in hybrids were in the up-to-$2,500 tier. Transport Canada’s closure page records the program’s end. |
| EVAP | Eligible transactions from February 16, 2026; scheduled through March 31, 2031, unless funding runs out sooner | Up to $5,000 is available in 2026 for eligible light-duty EVs. The vehicle, transaction value, transaction date and other program conditions determine eligibility. |
Transport Canada’s January 10, 2025 announcement said iZEV was scheduled to pause on March 31 or once its available funds had been accessed. The formal closure page gives the end date as March 31, 2025. The announcement also reported that more than 546,000 vehicles had received incentives since the program began. The announcement and closure page describe the earlier program; they do not establish current EVAP eligibility.
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How much can a buyer receive under EVAP?
The current federal overview advertises up to $5,000 in 2026 for qualifying light-duty EVs. The February 2026 federal policy announcement described maximums of $5,000 for battery-electric and fuel-cell vehicles and $2,500 for plug-in hybrids. The amount available to an individual buyer depends on the detailed rules and eligible vehicle list, so do not assume every EV—or every transaction—qualifies for the maximum. The federal policy announcement sets out the program’s announced incentive tiers.
Check the transaction value and vehicle origin
The program announcement set a $50,000 transaction-value cap for vehicles made in countries with which Canada has free-trade agreements, with an exception for Canadian-made vehicles. The live federal overview also highlights the $50,000 condition and Canadian-made exception. Because the applicable vehicle list and transaction rules determine eligibility, confirm the exact model and quoted transaction against the current EVAP rules before signing.
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Confirm purchase or lease date and powertrain
EVAP applies to eligible purchase or lease transactions made on or after February 16, 2026. The vehicle’s powertrain category matters: battery-electric, fuel-cell and plug-in hybrid vehicles do not necessarily receive the same maximum. Use the program’s detailed eligibility information for the specific vehicle and transaction rather than relying on an older iZEV list or a general claim that a model is “rebate eligible.”
Do provinces and territories offer additional EV incentives?
Transport Canada’s current federal incentives overview identifies Manitoba, Quebec and Yukon as offering EV-related incentives. Depending on the jurisdiction, support may apply to new or used EV purchases, residential charger installation or shipping costs for used EVs. Local rules differ, and the existence of a federal incentive does not by itself prove that a local incentive can be combined with it. Start with Transport Canada’s jurisdiction overview, then confirm current eligibility and stacking rules with the relevant province or territory.
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Older articles may list provincial programs or amounts that have since changed. Transport Canada’s evaluation reports that British Columbia paused its program in May 2025, while Quebec temporarily paused its program from February to April 2025 and reduced its incentive. Those historical changes are a reason to check the current local rules, not to treat past rebate amounts as available today. Transport Canada’s evaluation discusses those changes and the broader program context.
Does the end of iZEV show that rebates are jeopardized?
It shows that program continuity is not assured, but the available evidence does not prove that the iZEV pause alone caused changes in EV sales or that EVAP will run out early. Transport Canada’s evaluation reports that new light-duty ZEVs reached 15.4% of Canada’s market in 2024; ZEV market share was 9.8% across the first three quarters of 2025, after the iZEV and Quebec incentive pauses. That is a before-and-after pattern, not proof of a single cause. The evaluation also discusses affordability, provincial policy and other market conditions.
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The evaluation notes that, in a 2024 internal survey, 22.9% of individual iZEV recipients and 22.5% of organization recipients said they would have bought a ZEV without the incentive. Those are recipients’ reported counterfactual intentions, not a finding that incentives had no effect. Together, the figures illustrate why a rebate’s value and its impact are not as simple as counting claims or comparing two periods.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How long will EVAP funding last?
Transport Canada reported that $1.92 billion remained in EVAP funding as of October 1, 2026. That is a dated balance, not a forecast of how quickly the money will be used or a promise that funding will remain available until the scheduled March 31, 2031 end date. Check the live EVAP page for current program status and conditions when planning a purchase.
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What to check before counting on a rebate
- Confirm the date. Make sure the purchase or lease transaction falls within EVAP’s eligible period, beginning February 16, 2026.
- Check the exact vehicle. Verify its powertrain and eligibility on the current federal vehicle list; do not rely on an old iZEV listing or a general model-family claim.
- Review the quoted transaction. Check the transaction value and vehicle’s country of manufacture, including the Canadian-made exception to the announced cap.
- Check local rules separately. Look up your province or territory’s current purchase, used-vehicle, shipping or charger support and whether it can be combined with federal support.
- Confirm availability before committing. EVAP can end earlier than its scheduled date if funds are exhausted, and a published balance is only a snapshot.
If you are also budgeting for home charging, a Level 2 charger is not required by EVAP. Some jurisdictions may support residential charger installation, but equipment compatibility, household electrical capacity, installation needs and local program rules should be checked separately.
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