Prime Minister Announces $2.3 Billion EV Affordability Program
Last Updated: February 5, 2026, 6:09 PM EST (Toronto Time)
On February 5, 2026, Prime Minister Mark Carney announced a new $2.3 billion EV Affordability Program, marking the most significant federal electric vehicle incentive since the end of Canada’s original iZEV program.
The program is designed to make electric vehicles more affordable for Canadians as EV prices begin to approach those of gas-powered vehicles. It applies to individual buyers, families, and businesses, and officially opens on February 16, 2026.
What Is the Canada EV Affordability Program?
The EV Affordability Program is a federal rebate program that provides direct purchase or lease incentives for eligible electric vehicles.
Under the program:
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Canadians can receive up to $5,000 for eligible battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs)
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Canadians can receive up to $2,500 for eligible plug-in hybrid electric vehicles (PHEVs)
The rebate is applied at the point of sale or lease, reducing the upfront cost of the vehicle.
Official federal announcement (Government of Canada):
https://www.canada.ca/en/transport-canada/news/2026/02/canada-ev-affordability-program.html
How Much Is the New Canada EV Rebate?
The incentive amount depends on the type of vehicle and the year of purchase or lease. The government has confirmed the rebate will follow a declining schedule over the life of the program.
Canada EV Rebate Amounts by Year
2026
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BEV / FCEV: $5,000
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PHEV: $2,500
2027
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BEV / FCEV: $4,000
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PHEV: $2,000
2028–2029
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BEV / FCEV: $3,000
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PHEV: $1,500
2030
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BEV / FCEV: $2,000
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PHEV: $1,000
The structure encourages earlier adoption, with up to $3,000 more in rebates available in 2026 compared to the final year of the program.
Why Timing Matters for Buyers
If you are planning to purchase or lease an electric vehicle, timing has a real financial impact.
For example:
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Buying a BEV in 2026 instead of 2030 results in $3,000 more in federal rebates
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When combined with provincial EV incentives, the difference can be even larger
This is especially relevant for:
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First-time EV buyers
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Families replacing a primary vehicle
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Businesses electrifying company fleets
Which Electric Vehicles Are Eligible?
Not all electric vehicles sold in Canada will qualify. Eligibility is based on two main criteria:
1. Vehicle Price Cap
For most vehicles:
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The final transaction price (including dealer-installed options) must be $50,000 or less
This rule is intended to support mass-market adoption, not luxury vehicles.
Important Exception
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The $50,000 price cap does NOT apply to Canadian-made EVs and PHEVs
This exemption is designed to:
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Support domestic manufacturing
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Encourage investment in Canada’s EV supply chain
2. Vehicle Type
Eligible vehicles include:
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Battery Electric Vehicles (BEVs)
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Fuel Cell Electric Vehicles (FCEVs)
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Plug-in Hybrid Electric Vehicles (PHEVs)
Gas-only hybrids and conventional gasoline vehicles are not eligible.
Official eligibility details (Transport Canada):
https://www.canada.ca/en/transport-canada/services/road/innovative-technologies/zero-emission-vehicles.html
Who Can Use the EV Rebate?
The program is open to:
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Individual Canadian residents
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Families purchasing or leasing a vehicle
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Businesses and fleet operators
There is no indication that immigration status affects eligibility, as long as the buyer meets standard federal purchase and registration requirements.
Reality Check: Important Limits to Understand
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The rebate amount declines every few years
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Vehicle eligibility depends on price and manufacturing origin
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Program funding is finite, even though it spans multiple years
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Provincial rebates have separate rules and caps
This program helps reduce costs, but it does not eliminate the higher upfront price of some EV models.
Official Government Sources (Copy/Paste Ready for WordPress)
https://www.canada.ca/en/transport-canada/news/2026/02/canada-ev-affordability-program.html
https://www.canada.ca/en/transport-canada/services/road/innovative-technologies/zero-emission-vehicles.html
https://www.canada.ca/en/environment-climate-change/services/climate-change/electric-vehicles.html
