The Federal Electric Vehicle Subsidies Make a Big Comeback

The Federal Electric Vehicle Subsidies Make a Big Comeback

The federal government has announced the return of subsidies for the purchase or lease of electric and plug-in hybrid vehicles with the launch of the Electric Vehicle Affordability Program (EVAP), starting February 16, 2026. This program, similar to the previous scheme that was discontinued last year, aims to encourage the adoption of clean vehicles across the country.

Subsidy Amounts

• $5,000 for the purchase or lease of a new 100% electric vehicle

• $2,500 for the purchase or lease of a plug-in hybrid vehicle

Only vehicles manufactured in Canada or in countries that have a free trade agreement with Canada are eligible. Vehicles manufactured in China are therefore excluded from these subsidies.

Conditions and Limits

• For a vehicle manufactured abroad in a partner country, the price must not exceed $50,000

• For a vehicle manufactured in Canada, there is no price cap

Federal subsidies can be combined with provincial incentives available to Quebec residents: $2,000 for an electric vehicle and $500 to $1,000 for a plug-in hybrid.