The return of federal subsidies for electric vehicles: what you need to know
17 February 2026
Good news for electric vehicle drivers! On February 5, the federal government announced the return of financial incentives for the purchase of new electric vehicles. This new program, called the Electric Vehicle Affordability Program (EVAP) will come into effect on February 16, 2026, replacing the former iZVE program.
Subsidy amounts
The EVAP aims to make zero-emission vehicles (ZEVs) more accessible while boosting the local economy. Subsidy amounts will gradually decrease each year until 2030. Here are the details of the incentives for each year and type of vehicle:
|
2026 |
2027 |
2028-2029 |
2030 |
|
|---|---|---|---|---|
|
100% electric or fuel cell vehicles |
$ 5,000 |
$ 4,000 |
$ 3,000 |
$ 2,000 |
|
Plug-in hybrid vehicles |
$ 2,500 |
$ 2,000 |
$ 1,500 |
$1,000 |
New eligibility criteria
The government has revised the rules to ensure that financial assistance targets the most affordable models and vehicles manufactured by strategic trading partners. Here are the eligibility criteria:
- Price cap: To be eligible, the vehicle must have a final transaction value not exceeding $50,000 (before taxes and transportation costs). Please note: This cap now includes options and accessories added to the base model, as well as manufacturer or dealer fees related to the sale. See all the details on the program's "Questions and Answers" page.
- Vehicle origin: Only vehicles from countries with a free trade agreement with Canada are eligible.
- Canadian exception: To support the domestic industry, vehicles assembled in Canada are not subject to any price cap. If you choose a locally manufactured model, either the Dodge Charger Daytona (100% electric) or the Chrysler Pacifica PHEV (plug-in hybrid), you will receive the subsidy regardless of the invoice amount. These vehicles are currently assembled in Ontario.
- List of vehicles for informational purposes only: If a vehicle is not on the program's official list but meets the eligibility criteria and the final transaction value is $50,000 or less, the transaction may be eligible for the incentive (however, the fact that a vehicle is on the list does not guarantee that every transaction for every model will be eligible for an incentive).
- Limit of one grant per individual: In order to allow as many people as possible to benefit, each individual is now limited to one grant for the entire duration of the program (5 years).
- Limit of 10 grants per company/organization/municipality: Each organization is now limited to 10 grants for the entire duration of the program (5 years), except for car-sharing companies, which are eligible for 50 grants per year.
By consulting our Running electric vehicle catalog, you can find out which models are eligible for subsidies.
Combine discounts to maximize your savings
One of the biggest advantages for Quebec residents remains the possibility of combining this federal assistance with the provincial Roulez vert program, which continues to offer incentives of up to $2,000 for an electric vehicle and up to $1,000 for a plug-in hybrid vehicle until the end of 2026.
How can you benefit from these subsidies?
The financial incentives are applied directly by the dealer to the sales or lease contract, which automatically reduces the bill. You cannot apply for the incentive yourself. Only dealers can apply for it.
The program is free, and dealers cannot charge additional fees. The dealer must submit an application to Transport Canada to verify your eligibility. Approval is valid for 90 days. The incentive is applied directly to your sales/lease contract after taxes and fees.
Be sure to sign your sales contract before the end of 2026 to take full advantage of the subsidies, as they will be applied at the time of payment or financing. If you sign your contract after December 31, 2026, the subsidy may be reduced to $4,000.
Visit the Electric Vehicle Affordability Program (EVAP) page for full details: https://tc.canada.ca/fr/transport-routier/technologies-novatrices/vehicules-zero-emission/programme-abordabilite-vehicules-electriques-pave
Still hesitating to make the leap to electric? Wondering if an electric car is the right choice for you? Send us your questions atinfos@roulonselectrique.ca and we will be happy to answer them.