The old iZEV rebate is closed. Its replacement, the Electric Vehicle Affordability Program, pays up to $5,000 on a new battery-electric vehicle in 2026. The dealer applies it at the sale, and the amount drops every year.
If you are shopping for an electric vehicle, the date your dealer submits the paperwork can change what you get.
That is how Transport Canada sets the amount: by the day the dealership submits the eligibility assessment, not the day you buy, sign or take delivery. It is a small detail with real money behind it, because the incentive steps down each January.
Chapter 1
How much you get, and how it shrinks
The program covers vehicles bought or leased between February 16, 2026 and March 31, 2031, or until the funding runs out. The amounts fall over time:
| Year | Battery-electric and fuel cell | Plug-in hybrid |
|---|---|---|
| 2026 | $5,000 | $2,500 |
| 2027 | $4,000 | $2,000 |
| 2028 | $3,000 | $1,500 |
| 2029 | $3,000 | $1,500 |
| 2030 | $2,000 | $1,000 |
| 2031 | $2,000 | $1,000 |
The practical lesson: if you are going to buy an electric vehicle soon, doing it in 2026 means $1,000 more than waiting until 2027, provided the dealer submits the assessment before the year ends. Ask the dealer when they plan to submit it.
Chapter 2
Is your vehicle eligible?
According to Transport Canada, the vehicle must:
- Be bought or leased on or after February 16, 2026. Transactions started before that date do not qualify, even if the vehicle was delivered later.
- Have a final transaction value of $50,000 or less, unless it is made in Canada, in which case there is no cap.
- Be made in Canada or in a country with a free-trade agreement with Canada.
- Be a light-duty vehicle under 8,500 pounds that meets Canadian safety standards and can be driven on public roads.
- Be new, meaning registered for the first time. Demonstrators with under 10,000 km on the odometer can qualify.
Being on Transport Canada’s vehicle list helps, but the rules above are what decide eligibility. Leases must be 12 months or longer. A lease of 48 months or more gets the full amount, and shorter leases are prorated.
Chapter 3
How you actually get the money
You cannot apply yourself. Only enrolled dealerships and authorized sellers can. The dealer has you sign a consent form so Transport Canada can check that you qualify, then you sign an attestation form. The incentive is applied to your bill of sale or lease agreement after taxes and fees.
Individuals can get one incentive over the five-year program. Businesses and organizations can get up to 10.
Before you sign for an EV
These questions cost nothing and can protect your discount.
- 1. Is this dealer enrolled?Only enrolled dealers and authorized sellers can apply the incentive.
- 2. When will you submit the assessment?The amount depends on that date. Ask for it in writing, especially near the end of December.
- 3. Is the final price under $50,000?The cap is on the final transaction value, unless the vehicle is made in Canada.
- 4. Is it new?Used EVs do not qualify.
- 5. Where is it built?It must be made in Canada or a free-trade country.
- 6. What is the incentive amount on my bill?It should show as a line after taxes and fees.
Chapter 4
Provincial rebates
Some provinces have their own EV programs, and they change often. We did not confirm current provincial amounts from official sources, so we are not listing them here. Check your provincial government’s site before you buy, because a provincial rebate may stack on top of the federal one.
Frequently asked questions
Is there a federal EV rebate in Canada in 2026?
Yes. The Electric Vehicle Affordability Program offers point-of-sale incentives of up to $5,000 for battery-electric and fuel cell vehicles and up to $2,500 for plug-in hybrids in 2026, for vehicles bought or leased on or after February 16, 2026.
What happened to the iZEV rebate?
Transport Canada says it no longer accepts applications under iZEV and points to the Electric Vehicle Affordability Program instead.
Can I apply for the EV rebate myself?
No. Only enrolled dealerships and authorized sellers can submit the request, and the incentive is applied to your bill of sale or lease.
Does the EV rebate apply to used electric vehicles?
No. The vehicle must be new, meaning registered for the first time. Demonstrators with fewer than 10,000 km can qualify.
How much will the EV rebate be next year?
In 2027 the incentive drops to up to $4,000 for battery-electric and fuel cell vehicles and up to $2,000 for plug-in hybrids. The amount is based on the date the dealer submits the eligibility assessment.
- Sources, checked October 8, 2026: Transport Canada, Electric Vehicle Affordability Program overview; Transport Canada, EVAP. Photos from Pexels.
Important: This is general information, not financial advice. Program rules and amounts can change, and funding can run out before 2031. Confirm eligibility with your dealer and on Transport Canada’s site before you buy. Gizly is not paid by the government. See our affiliate disclosure.
