EVAP: $2.275B Remaining — The Race for Canada's EV Rebates Is On

EVAP Enters Its Active Phase

April 1, 2026 marks the official start of the Electric Vehicle Affordability Program (EVAP), the successor to the iZEV program. With a total budget of $2.275 billion through March 2031, it's the largest federal investment ever dedicated to EV rebates in Canada. But here's the catch: it's first-come, first-served. Once the funds run out, the program closes — regardless of the calendar date.

How Much You Can Save

The maximum rebate is $5,000 for a fully electric or hydrogen vehicle, and $2,500 for a plug-in hybrid. The main condition: the final transaction price must not exceed $50,000. Important exception: EVs made in Canada have no price cap, a significant advantage for locally assembled models.

The amounts decrease each year:

The first year is the most generous. For buyers still on the fence, every month of waiting potentially reduces your rebate.

What This Means for Chinese EVs

This is a crucial point for China-EV.ca readers. Will Chinese vehicles imported under the 49,000-unit quota qualify for EVAP? No. EVAP requires vehicles to be assembled in a country that has a free trade agreement (FTA) with Canada. Since China has no FTA with Canada, Chinese EVs are not eligible for EVAP, regardless of their price.

That said, provincial incentives remain available: up to $2,000 in Quebec (Roulez Vert) and $4,000 in PEI. A BYD Seagull at ~$22,000 could cost as little as $20,000 in Quebec with the provincial rebate. That's competitive pricing, even without the federal EVAP.

Already Eligible Models

As of April 2026, 22 models are already on the official EVAP list. Among them: Tesla Model 3, Hyundai Ioniq 5, Kia EV6, Chevrolet Equinox EV, and several others. Chinese vehicles are not on the list and cannot be added — even after Transport Canada homologation — because EVAP requires final assembly in a country with a free trade agreement with Canada. China does not have one.

Our Advice

Don't wait. If you're planning to buy an EV from an eligible manufacturer (Tesla, Hyundai, Kia, etc.), EVAP can save you up to $5,000. For Chinese EVs, even without EVAP, competitive pricing combined with provincial incentives (up to $2,000 in Quebec) makes these vehicles highly affordable. A BYD Dolphin at ~$35,000 remains well below the Canadian market average.

FAQ