Canada restored a $5,000 EV rebate for new electric cars under $50,000, excluding Chinese-made models.

In March 2026, Canada reinstated a $5,000 federal rebate for new electric vehicles priced under $50,000 after discounts, expanding eligibility to higher-trim models through dealer incentives. The rebate excludes vehicles made in China and applies to BEVs and plug-in hybrids, with Canadian-built models exempt from the cap. Popular eligible models include the Kia EV4, Nissan Leaf, Toyota bZ, and Ford Mustang Mach-E, with some dealers offering discounts up to $17,000. While new EVs benefit from rebates and lower sticker prices, used EVs remain attractive due to faster depreciation and lower long-term costs, according to CAA and Vincentric studies.