Canada – EVAP EV Consumer Incentives & Rebates

Canada offers a new $2.3 billion EVAP Electric Vehicle Affordability Program. The fund provides consumer incentives and rebates for five years through 2030.

Program Date: February 16, 2026 through 2030 (end date to be announced)

Eligible EV Vehicles

  • EVs manufactured in Canada qualify – no cap or threshold on the transaction price
  • EVs made by countries where Canada has a current or future free-trade agreement qualify – with vehicle transaction values in effect:
    • $50,000 final transaction value or below qualify
  • See vehicle inventory
  • Canada currently has free-trade agreements with:
    • United States and Mexico — CUSMA agreement
    • Australia, Chile, Japan, Mexico, New Zealand, Vietnam and others — CPTPP agreement
    • All European Union member states — CETA agreement
    • United Kingdom — TCA agreement
    • South Korea — CKFTA agreement

Incentives & EV Rebate Amounts

  • up to $5,000 rebate for battery electric BEV vehicles in 2026 (purchase or lease)
  • up to $2,500 rebate for plug-in hybrid PHEV vehicles in 2026 (purchase or lease)
  • rebate amounts will decline annually where in 2030, there will be a $2,000 incentive for BEVs and a $1,000 incentive for PHEVs

Canada – Chinese EV Imports

Canada provides import guidelines on Chinese-made EVs to manage the entry of Chinese EVs into Canada. Canada continues to work with Chinese auto makers on vehicle certifications and Canadian motor vehicle safety standards.

Import Quotas

  • 49,000 Chinese-made EVs per year at a most-favoured-nation MFN tariff rate of 6.1%
  • Increasing quotas over five years to 70,000 Chinese-made EVs per year in 2030
  • The China-specific quota reserved for affordable EVs targets an imported landing cost of $35,000 CAD or less, reaching 50% of the import quota by 2030

Canada – EV Production & Sales Mandates

Canada repeals the Electric Vehicle Availability Standard ZEV Mandate. In its place, Canada introduces new and more stringent GHG greenhouse gas emission standards:

  • Applies to 2027-2032 MY model-year vehicles
  • Adjusted EV production and sales targets 75% EV sales by 2035 and 90% EV sales by 2040 to reduce our carbon footprint

Canada – Domestic Automotive Sector Support

Canada outlines support to grow Canada’s domestic auto sector:

  • $3 billion CAD from the Strategic Response Fund and up to $100 million CAD from the Regional Tariff Response Initiative to help the auto industry adapt, grow, and diversify to new markets
  • $1.5B CAD from the Canada Infrastructure Bank’s Charging and Hydrogen Refueling Infrastructure Initiative to expand EV electric charging infrastructure
  • Automotive counter-tariffs on auto imports from the United States to ensure a level playing field for Canadian automakers – consultations ongoing to create a system where vehicle manufacturers earn import credits through production and investment in Canada:
    • companies with surplus credits could sell them to those seeking to import vehicles to Canada
    • recognize Canadian content, job creation, and EV production