Incentive Programs for Electric and Plug-In Hybrid Vehicles in Canada

2026 Status: New program active starting February 16, 2026

To reduce greenhouse gas (GHG) emissions in Canada, the Government of Canada has introduced financial incentives to encourage the purchase of zero-emission vehicles (ZEVs), such as electric cars, plug-in hybrid vehicles, and hydrogen fuel cell vehicles.

PAVE Program Eligibility Criteria

The new program is designed to encourage the purchase of zero-emission vehicles (ZEVs) while prioritizing vehicles manufactured in Canada or in countries with a free trade agreement with Canada.

Eligible vehicles include:

• Electric vehicles

• Plug-in hybrid vehicles

• Hydrogen fuel cell vehicles

Important conditions:

• The vehicle must be manufactured in Canada or in a country with a free trade agreement with Canada (United States, South Korea, European Union, etc.)

• For vehicles manufactured in a country with a free trade agreement, the total transaction price must not exceed $50,000

• For vehicles manufactured in Canada: no price cap applies

• Chinese vehicles are NOT eligible for the program

Incentives for Purchasing or Leasing a ZEV

Rebates vary by vehicle type and decrease progressively over the years:

For 2026 (starting February 16):

• Battery electric vehicles and hydrogen fuel cell vehicles: $5,000

• Long-range plug-in hybrid vehicles (electric range of 50 km or more): $2,500

Progressive reduction in amounts:

• 2027: $4,000 (EV) / $2,000 (PHEV)

• 2028-2029: $3,000 (EV) / $1,500 (PHEV)

• 2030: $2,000 (EV) / $1,000 (PHEV)

The PAVE program runs for five years and has a budget of $2.3 billion. The incentive is applied directly by the car dealership when you purchase or lease the vehicle.

For more information, visit the Government of Canada website.

• Alberta

• British Columbia

• Manitoba

• New Brunswick

• Newfoundland and Labrador

• Nova Scotia

• Northwest Territories

• Nunavut

• Ontario

• Prince Edward Island

• Quebec

• Saskatchewan

• Yukon

Provincial Program: No active program in 2026

Alberta residents do not currently have access to a provincial electric vehicle rebate program. However, they can benefit from the new federal PAVE program, which offers up to $5,000 to Canadians who purchase or lease zero-emission vehicles (ZEVs).

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles,  all with an electric range of 50 kilometres or more,  are eligible for $5,000 (in 2026)

• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.

2026 Status: Program active until March 31, 2026

Many Manitoba families are looking to make the switch to an electric or plug-in hybrid electric vehicle (EV). The Manitoba government is supporting this transition through the Manitoba Electric Vehicle Rebate Program, which aims to make EVs more affordable and to triple the number of EVs on Manitoba roads by 2026.

The Manitoba Electric Vehicle Rebate Program provides rebates of:

• $4,000 on the purchase of a new eligible electric vehicle
• $2,500 on the purchase of a pre-owned eligible electric vehicle
• $1,000 to $4,000 on leasing a new eligible electric vehicle
• $625 to $2,500 on leasing a pre-owned eligible electric vehicle (depending on the lease length)

Eligibility:

• Vehicles must be purchased or leased from Manitoba dealerships.
• The maximum MSRP for new vehicles and purchase price for used vehicles is $70,000.
• New Tesla vehicles purchased outside Manitoba between August 1, 2023, and May 2, 2024, with a maximum MSRP of $70,000, also qualify.
• Vehicles must remain registered in Manitoba and owned by the purchaser for at least 12 months.
• Manitoba residents, corporations, businesses, First Nations, and municipalities are eligible. Crown corporations, federal, and provincial governments are not eligible.
• There is a limit of one rebate per vehicle and per owner during the program.

Application Process:

Purchasers of eligible EVs, including those who purchased between August 1, 2023, and July 1, 2024, can apply online through a streamlined process on the Manitoba Public Insurance website.

Program Duration:

The rebate program runs from July 1, 2024, to March 31, 2026. EVs purchased between August 1, 2023, and March 31, 2026, are eligible for the rebate.

For more details, visit the Manitoba government website.

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles, all with an electric range of 50 kilometres or more, are eligible for $5,000 (in 2026)
• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles, all with an electric range of 50 kilometres or more,are eligible for $5,000 (in 2026)
• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles, all with an electric range of 50 kilometres or more, are eligible for $5,000 (in 2026)

• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.

No active program in 2026

Nunavut residents do not currently have access to a provincial electric vehicle rebate program. However, they can benefit from the new federal PAVE program, which offers up to $5,000 to Canadians who purchase or lease zero-emission vehicles (ZEVs).

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles, all with an electric range of 50 kilometres or more, are eligible for $5,000 (in 2026)

• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.

No active program in 2026

Ontario residents do not currently have access to a territorial electric vehicle rebate program. However, they can benefit from the new federal PAVE program, which offers up to $5,000 to Canadians who purchase or lease zero-emission vehicles (ZEVs).

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles,  all with an electric range of 50 kilometres or more,  are eligible for $5,000 (in 2026)

• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.

2026 Status: Active program with new amounts since June 2, 2025

The Government of Prince Edward Island continues to offer electric vehicle (EV) incentives in Canada. As of June 2, 2025, rebate amounts have been revised.

Rebate Amounts (as of June 2, 2025):

• $4,000 for the purchase of a new or used battery electric vehicle (BEV).
• $2,000 for the purchase of a plug-in hybrid vehicle (PHEV) made on or after April 1, 2021.

Important Note:  Vehicles purchased before June 2, 2025, may be eligible for the previous rebate structure:

• $5,750 for eligible electric vehicles ($5,000 + $750 for charging)

• $3,250 for plug-in hybrid electric vehicles ($2,500 + $750 for charging)

Total Potential Savings:

• Up to $4,000 for a new or used BEV (provincial)

• Up to $2,000 for a new or used PHEV (provincial)

• When combined with the federal PAVE incentive, Prince Edward Island residents can save up to $9,000 on a new BEV ($4,000 provincial + $5,000 federal)

For more details and to apply, visit the Prince Edward Island Electric Vehicle Incentive page.

Roulez Vert Financial Assistance Program – Québec Residents

The Roulez Vert program, offered by the Gouvernement du Québec, encourages the acquisition of electric vehicles (EVs) and the installation of charging stations. The program is open to individuals, companies, organizations, and municipalities in Québec, provided all conditions are met.

Financial assistance is available for:

• Acquisition of a new electric vehicle.
• Acquisition of a used electric vehicle.
• Acquisition and installation of a home charging station.

Amounts granted: 

• $2,000 for a fully electric vehicle registered in 2025.
• $500 for a plug-in hybrid vehicle (8 to less than 15 kWh) registered in 2025.
• $1,000 for a plug-in hybrid vehicle (15 kWh and above) registered in
  2025.
• $1,000 for a used fully electric vehicle registered in 2025.

💡Amounts will be reduced in 2026, and the program will end on December 31, 2026.

Note on exceptions:
The program was paused from February 1 to March 31, 2025. Vehicles registered during the program suspension are not eligible for financial assistance. The registration date determines eligibility, not the order or deposit date.

For more information and to stay up to date on the program, visit the official Roulez Vert website. 

No active program in 2026

Saskatchewan residents do not currently have access to a territorial electric vehicle rebate program. However, they can benefit from the new federal PAVE program, which offers up to $5,000 to Canadians who purchase or lease zero-emission vehicles (ZEVs).

The PAVE program offers two types of rebates:

• Battery electric vehicles, hydrogen fuel cell vehicles, and long-range plug-in hybrid electric vehicles,  all with an electric range of 50 kilometres or more,  are eligible for $5,000 (in 2026)

• Plug-in hybrid vehicles (PHEVs) with an electric range of less than 50 kilometres are eligible for $2,500 (in 2026)

For more information, visit the Government of Canada website.