When will Canada’s new EV rebate be available?

Transport Canada posted an update about the upcoming Electric Vehicle Affordability Program, which will offer incentives for the purchase or lease of eligible EVs and PHEVs.

EV plugged in — *Canada’s new EV and PHEV incentive program will launch soon. – Photo by Kindel Media on Pexels.com*

Canadians shopping for fully electric and plug-in hybrid vehicles will soon be able to get some government cash to help them pay for the purchase.

Transport Canada posted an update on its website about the upcoming Electric Vehicle Affordability Program.

Details are still scant, but Transport Canada said Canadians could start benefiting from the new program as early as Feb. 16, 2026.

The federal agency said more information about the program will be available on its website soon.

What incentives will be offered?

The new program is intended to accelerate EV adoption by offering an incentive for Canadians to buy or lease eligible vehicles.

The program will offer up to $5,000 for the purchase or lease of a battery-electric vehicle (BEV) or fuel-cell electric vehicle (FCEV).

The program will also offer up to $2,500 for the purchase or lease of a plug-in hybrid electric vehicle (PHEV).

Only vehicles that are manufactured in Canada or in the countries with which Canada has existing free-trade agreements are eligible for the rebate program.

Additionally, the rebate is only available on vehicles with a final transaction value no greater than $50,000, unless the vehicle is made in Canada, in which case there is no transaction limit.

For updates, visit the Transport Canada website.

More EV chargers on way

Prime Minister Mark Carney announced a series of initiatives to help support Canada’s auto sector and to support the transition to zero-emission vehicles.

As part of the new auto strategy, the government announced $84.4 million for 122 projects to install more than 8,000 EV charges across the country.

The Canadian government said its support over the years has already led to more than 30,000 EV chargers being installed nationwide.

“We are making it easier, cleaner and more affordable for Canadians to get where they need to go by investing in new EV charging infrastructure,” said Julie Dabrusin, minister of the environment and climate change and nature, in a news release.

“We are building thousands of new EV chargers and creating skilled construction jobs in communities across Canada. Making the switch to an electric vehicle reduces greenhouse gas emissions, and with the EV Affordability Program, drivers can save up to $5000, making EVs more accessible for Canadians to go electric.”