The Next Generation of EV Support
Following the pause of the iZEV program in early 2025, the Canadian government announced the Electric Vehicle Affordability Program (EVAP). Launching in February 2026, this program introduces stricter price caps and a new focus on domestic manufacturing while introducing a limited incentive for used EVs.
Incentive Amounts (2026 Launch)
- New BEV/FCEV: $5,000
- New PHEV: $2,500
- Used BEV: $2,500 (Subject to price and age caps)
Important: These amounts are scheduled to decrease annually after 2026 as EV adoption reaches critical mass.
New Eligibility Rules
Price Cap Strategy:
- Non-Canadian made vehicles: MSRP must be under $50,000.
- Canadian-made vehicles: No price limit (designed to support the domestic EV industry).
Sourcing Requirements:
- Vehicles must be manufactured in Canada or a country with a qualifying Free Trade Agreement.
Income Limits:
- Unlike iZEV, EVAP may introduce high-income phase-outs (details pending final 2026 regulations).
How to Prepare
- Wait for the Portal: The application portal is expected to open on March 31, 2026.
- Point-of-Sale: Similar to the old program, the rebate will be applied at the dealership.
- Leasing: Incentives will be pro-rated for leases of 12, 24, or 36+ months.
Recommendation: If you are planning an EV purchase in late 2025, it may be worth waiting until Feb 2026 to take advantage of the new EVAP incentives, especially for used vehicles or Canadian-made models.