Drive Green, Save Big: Your Guide to Canada's NEW EVAP Program (2026 Edition!)
Drive Green, Save Big: Your Guide to Canada's NEW EVAP Program (2026 Edition!)
Posted on March 3, 2026
Drive Green, Save Big: Your Guide to Canada's NEW EVAP Program (2026 Edition!) 
The landscape of electric vehicle (EV) incentives in Canada just got a significant upgrade! As of February 16, 2026, the new Electric Vehicle Affordability Program (EVAP) has officially launched, replacing previous initiatives like iZEV and aiming to make going electric more accessible for Canadians and Canadian businesses.
This isn't just a tweak; it's a fundamental shift designed to put more money back into your pocket directly at the dealership. Let's dive into what you need to know about EVAP and how you can take advantage of it.
What's New with EVAP? The $50,000 "Transaction Value" Sweet Spot
Forget complicated MSRP caps. The biggest change with EVAP is its focus on the final transaction value of the vehicle. If the total price (before taxes, but including trims and factory options) of your new battery-electric or plug-in hybrid vehicle (PHEV) is less than $50,000, you likely qualify for a federal incentive.
How Much Can You Save?
EVAP offers generous federal rebates:
- Up to $5,000 for eligible battery-electric vehicles (BEVs) and fuel-cell electric vehicles (FCEVs).
- Up to $2,500 for eligible plug-in hybrid vehicles (PHEVs).
Schlueter Hyundai has many models that qualify for the new rebate.
Hyundai vehicles that qualify and are on the Transport Canada approved list
- 2025 Kona EV Preferred
- 2025 Kona EV Preferred with Trend Package
- 2026 Kona EV Preferred
- 2026 Kona EV Preferred with Trend Package
- 2026 Kona EV Preferred with Ultimate Package
In addition Hyundai has added stackable credits to the following vehicles to make the final transaction price under $50000*
- 2025 Tucson PHEV
- 2025 Ioniq 6 RWD Long Range
- 2025 Ioniq 6 AWD Long Range
- 2025 Ioniq 6 AWD Long Range with Ultimate Package
Crucial Details You Need to Know:
- Point of Sale Savings: No need to jump through hoops or wait for reimbursement. The dealership will deduct the EVAP incentive directly from your bill of sale after the sales tax has been calculated on the purchase price. This means immediate, tangible savings right when you buy or lease.
- The "One and Done" Rule for Individuals: This is important for personal buyers. As an individual, you can only claim one EVAP incentive over the 5-year program. If you opt for a PHEV now and receive the $2,500 rebate, you won't be eligible for the $5,000 BEV rebate in the future. Choose wisely based on your long-term driving needs!
- Lease Adjustments: Leasing an EV? To receive the full EVAP rebate, you'll typically need a 48-month lease. Shorter lease terms, such as a 24-month lease, will see the rebate pro-rated, usually resulting in 50% of the full incentive (e.g., $2,500 for a BEV).
- Businesses Get More Flexibility: If you're a business or organization, the rules are a bit different. You can qualify for up to 10 incentives over the 5-year program, making it easier to electrify your fleet.
Pro Tip: Act Now for Maximum Value!
Here's a little insider secret: the EVAP incentive amounts are scheduled to decrease annually starting in 2027/2028. This means that 2026 is currently the "max-value" year for this program. If you've been on the fence about making the switch to electric, now might be the absolute best time to do it!
Ready to Go Electric?
The 2026 EVAP program makes driving green more affordable than ever. By focusing on the final transaction value and providing immediate, point-of-sale rebates, the Canadian government is making a clear push to accelerate EV adoption.
Whether you're eyeing a sleek new battery-electric or a versatile plug-in hybrid, understanding these new incentives can help you make an informed decision and save significantly. Visit us at Schlueter Hyundai,, ask about EVAP, and take the first step towards a cleaner, more economical drive!
*Disclaimer: Program details and vehicle eligibility are subject to change. Always confirm the latest information with your dealership and official government sources