Canada’s former federal EV rebate, the Incentives for Zero-Emission Vehicles Program (iZEV), ran out of funding and closed on March 31, 2025. A successor, the Electric Vehicle Affordability Program (EVAP), now offers a federal incentive for qualifying transactions. Transport Canada reported $1.92 billion remaining in EVAP as of October 1, 2026; that balance can change as claims are approved.
Did Canada’s federal EV rebate run out of money?
Yes—the iZEV program’s available funds were fully committed. It paused in January 2025 and officially closed on March 31, 2025. Transport Canada says iZEV launched in May 2019 and provided point-of-sale incentives for eligible new vehicle purchases and leases. Transport Canada’s iZEV program page records the closure, while its 2024–25 departmental results report says the program paused after all funds were allocated.
The January 10, 2025 announcement said incentives would be available only until the funds were exhausted. At that time, Transport Canada reported that more than 546,000 vehicles had received incentives since iZEV began. Those are historical figures, not a measure of current EVAP activity. Transport Canada’s January 10, 2025 announcement also reported that new ZEV market share was 11.7% in 2023, compared with 3.1% in 2019, and 14.2% during the first three quarters of 2024.
What iZEV offered
Before it closed, iZEV offered up to $5,000 for eligible battery-electric and hydrogen fuel-cell vehicles and longer-range plug-in hybrids, and up to $2,500 for shorter-range plug-in hybrids. The amount depended on vehicle eligibility and available program funds.
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What replaced iZEV?
The federal successor is the Electric Vehicle Affordability Program (EVAP). It covers eligible purchase or lease transactions dated on or after February 16, 2026, and is scheduled to run until March 31, 2031, or sooner if its funding is used up. Transport Canada’s program page, modified October 2, 2026, says EVAP received $2.275 billion over five years and had $1.92 billion remaining as of October 1, 2026. Funding is distributed first-come, first-served, so the scheduled end date does not guarantee that money will remain available until then. Check the current EVAP program page near your transaction date for updated funding information.
EVAP maximums by year
These are maximum incentive levels, not a guarantee that a particular vehicle or transaction qualifies. The level that applies is determined by when the dealer or authorized seller submits the eligibility assessment through the program portal—not simply by the date you buy or lease the vehicle.
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| Assessment submission year | Battery-electric and hydrogen fuel-cell | Plug-in hybrid |
|---|---|---|
| 2026 | Up to $5,000 | Up to $2,500 |
| 2027 | Up to $4,000 | Up to $2,000 |
| 2028–2029 | Up to $3,000 | Up to $1,500 |
| 2030–2031 | Up to $2,000 | Up to $1,000 |
Transport Canada lists these scheduled levels on its EVAP program page. The qualifying vehicle, transaction, lease term, and assessment submission date determine the amount that may be approved.
Which vehicles and transactions may qualify?
EVAP eligibility is based on the specific vehicle and deal, not just a model name. Transport Canada’s general criteria say a vehicle must be new and light-duty (under 8,500 pounds), have at least four functioning wheels, be highway-capable and intended for public roads, meet Canadian Motor Vehicle Safety Standards, and be made in Canada or in a country with a Canadian free-trade agreement.
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- The final transaction value generally must be $50,000 or less. This price cap does not apply to Canadian-made EVs.
- Demonstrator vehicles may qualify if they have fewer than 10,000 km.
- Leases must be at least 12 months. A lease of 48 months or more receives the full eligible incentive; shorter eligible leases are prorated.
Consult the official EVAP page and vehicle list, and have the seller assess the exact transaction. An eligible model does not by itself guarantee that a particular purchase or lease will be approved.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How do you receive the EVAP rebate?
The incentive is applied at the point of sale by a participating dealership or authorized seller. Consumers cannot submit an EVAP rebate application themselves. Dealer participation is voluntary, so confirm that the seller participates before relying on the incentive.
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- Choose a qualifying vehicle and deal. Check the current official vehicle list and discuss the final transaction details with the seller.
- Ask the seller to submit an eligibility assessment. The seller uses the program portal; the submission date determines the applicable incentive level.
- Provide consent and review the attestation. If approved, provide the required consent and review and sign the eligibility attestation.
- Check the bill of sale or lease. The seller applies the approved incentive after taxes and fees.
Transport Canada explains the transaction and seller process on its EVAP program page. Its EVAP frequently asked questions cover the point-of-sale process and funding order.
Can you combine the federal incentive with other support?
Some provinces and territories offer separate EV-related incentives. Transport Canada’s current overview identifies programs in Manitoba, Quebec, and Yukon, and notes that local assistance may cover new or used vehicle purchases, residential charger installation, or shipping costs for used EVs. The programs and terms vary and can change, so check the relevant government’s current rules rather than assuming a particular incentive is open or stackable. See Transport Canada’s overview of zero-emission vehicle incentives.
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For businesses and organizations, federal guidance also describes an enhanced first-year capital cost allowance for eligible EVs. The Spring Economic Update 2026 set out a proposed rule that a business could not claim both an EVAP rebate and immediate expensing for the same vehicle, with the proposal effective February 16, 2026. Because this concerns tax treatment and the update described a proposal, business buyers should confirm the current rules for their circumstances with the relevant government guidance or a tax professional. Spring Economic Update 2026.
iZEV and EVAP are separate programs
iZEV is closed; EVAP is a successor with its own eligibility rules, funding, and incentive schedule. The historical iZEV amounts and closure date should not be treated as the current offer. For EVAP, the transaction’s eligibility and the seller’s assessment submission date determine whether an incentive applies and at what level.
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