What You Need to Know About Canadian EV Fleet Incentives: While They Last

Canadian fleet operators have historically had access to some of North America's most comprehensive commercial EV incentive programs. The landscape shifted significantly in 2025 and 2026, with several major programs pausing or ending and a new federal light-duty program launching in February. This guide reflects the current status of each program as of May 2026.

Important: Fleet managers should verify the current status of every program directly with the relevant government agency before making procurement decisions. Available funding changes rapidly.

Federal Programs

Electric Vehicle Affordability Program (EVAP): Active

The Electric Vehicle Affordability Program (EVAP) launched February 16, 2026, replacing the iZEV program. It provides point-of-sale incentives for eligible light-duty zero emission vehicles, applied by enrolled dealerships at the time of purchase or lease.

Incentive amounts in 2026:

• Up to $5,000 for battery electric vehicles (BEVs) and hydrogen fuel cell electric vehicles (FCEVs)
• Up to $2,500 for plug-in hybrid electric vehicles (PHEVs)

These amounts decrease annually through March 31, 2031. Acting in 2026 secures the highest available rate.

Vehicle eligibility:

• Light-duty vehicles under 8,500 lbs gross vehicle weight
• Manufactured in Canada or in a country with a free trade agreement with Canada
• Final transaction value of $50,000 or less, including dealer fees but excluding GST and freight (no price cap for Canadian-made vehicles)

Fleet usage limit: up to 10 incentives per organization over the 5-year program. Eligible recipients include businesses, non-profit organizations, and provincial, territorial, and municipal government fleets. Organizations under common ownership are treated as one entity. As of May 2026, $2.153 billion in funding remains available.

Leases qualify for terms of 12 months or more. The incentive is prorated against a 48-month baseline, so a 24-month lease receives half the incentive amount.

iZEV Program: Replaced by EVAP

The iZEV program was paused January 12, 2025, when all allocated funds were committed. It has been replaced by EVAP. No additional funding is available.

iMHZEV Program (Medium and Heavy Duty): Ended

The iMHZEV program provided up to $200,000 per eligible medium or heavy-duty zero emission vehicle, capped at 75% of the manufacturer's suggested retail price when combined with provincial or territorial incentives, with a maximum of $1 million per calendar year per organization. The program ended March 31, 2026. No federal replacement for medium and heavy-duty vehicles has been announced. Provincial programs and carbon credit revenue are currently the primary options for these fleets.

Zero Emission Vehicle Infrastructure Program (ZEVIP): Closed for Applications

The ZEVIP program funded the purchase and installation of charging stations and hydrogen refuelling stations across Canada. All main funding streams are currently closed for applications. The program is funded until 2027. Monitor the Natural Resources Canada ZEVIP page for any new intakes.

Enhanced Capital Cost Allowance: Active

Canadian organizations can claim an enhanced first-year capital cost allowance on eligible zero emission vehicles. This deduction can be combined with federal incentives like EVAP. Confirm current eligibility limits and deduction caps with your accountant.

Provincial Programs

British Columbia

Medium and Heavy Duty Vehicle Rebates: Paused, New Program Coming

The Go Electric Rebates Program for commercial vehicles was paused in August 2025. A refreshed version is in development with no confirmed launch date. Monitor the Go Electric BC commercial vehicles page for updates.

BC Go Electric Fleet Charging Program: Active, Verify Current Deadlines

The Fleet Charging Program supports public, private, and Indigenous fleets transitioning to zero emission vehicles, covering fleet suitability assessments, infrastructure and facility assessments, electrical work and service upgrades, and ZEV advisory services. Contact CleanBC to verify current intake status and deadlines.

BC Low Carbon Fuel Standard (BC-LCFS): Active

BC offers carbon credit opportunities through the BC-LCFS program, stackable on top of the federal Clean Fuel Regulations program, creating a double credit opportunity for BC fleet operators.

Quebec

Roulez Vert (Light Duty): Active but Winding Down

Quebec's Roulez Vert program resumed April 1, 2025. The maximum rebate is $2,000 for battery electric or fuel cell vehicles, and the program ends December 31, 2026. Quebec fleet operators acquiring BEVs in 2026 can stack EVAP and Roulez Vert for a combined federal and provincial incentive of up to $7,000 per vehicle.

Medium and Heavy Duty and Infrastructure Programs: Verify Current Status Directly

Quebec has historically offered robust commercial fleet electrification programs covering vehicle purchase support and infrastructure funding. These programs have been subject to suspension and review. Fleet managers in Quebec should contact the provincial government directly before applying.

Nova Scotia

Point of Sale Rebates: Verify Current Status

Nova Scotia has offered rebates for Class 2B to 8 vehicles. Fleet managers should verify current program availability, per vehicle limits, and available funding directly with the provincial program administrator.

Manitoba

Electric Vehicle Rebate Program: Expired

Manitoba's Electric Vehicle Rebate Program ran until March 31, 2026 and has concluded. No extension has been announced.

Other Provinces and Territories

The Yukon offers a $5,000 rebate for new battery electric vehicles and qualifying plug-in hybrids with an electric range of 50 km or more. Tesla vehicles have been ineligible since April 2025. Other provincial and territorial programs continue to evolve. Check current provincial government pages for the most up-to-date available funding.

Planning Your EV-Ready Fleet Transition

Before applying to any incentive program, fleet operators benefit from completing a fleet assessment to identify which vehicles are best suited for electrification based on driving patterns and routes. This process covers electrical infrastructure needs at each depot, planning costs for any required service upgrades, and identifying charging requirements by facility. Developing an EV-ready fleet plan ahead of time strengthens applications for financial assistance and provides the documentation most programs require, including fleet size, vehicle class, and overall business case.

Carbon Credits: The Ongoing Revenue Opportunity

Unlike direct purchase incentives, carbon credit programs are not subject to funding limits or program end dates in the same way. They represent an ongoing revenue stream for fleets that reduce greenhouse gas emissions by replacing combustion fuel with electricity.

Federal Clean Fuel Regulations (CFR): Active

Available nationwide for fleet operators who manage their own charging infrastructure. Organizations submit annual credit creation reports by April 30 for the preceding compliance period. Credits can be sold to generate revenue that offsets fleet operating costs.

BC Low Carbon Fuel Standard: Active

Additional credits are available for BC fleet operators on top of federal CFR, creating a stackable revenue opportunity.

For a detailed breakdown of how carbon credits work for Canadian fleets, see Unlocking the Economics of EV Fleets with Carbon Credits.

→ See how much your fleet could earn with our Carbon Credit Revenue Estimator.

The incentive landscape is changing faster than any blog post can track. 7Gen works with Canadian fleet operators to identify currently available government incentives, stack programs effectively, complete application processes, and generate ongoing revenue through carbon credit programs. For a broader overview of how government incentive frameworks work, see How Government Incentives Support Your Transition to Fleet Electrification.

→ Use our free TCO Calculator to compare EV vs. ICE fleet costs for your operation.