The federal electric vehicle (EV) rebate program is relaunched today, with some Canadian auto dealers expressing concerns over outstanding reimbursements from the previous initiative. Canadians are now eligible for up to $5,000 in rebates for EVs priced below $50,000, while plug-in hybrids can receive $2,500 in subsidies.
The reintroduction of this popular program has been well-received by car dealerships, although some remain cautious due to the delayed launch of the government’s reimbursement claims portal until April. Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., voiced unease, stating that his dealership is owed $20,000 from the previous program after Transport Canada declined to reimburse rebates for EV sales in 2024.
Upon discovering the lack of reimbursement, Woods contacted Transport Canada for payment but was informed that the program had already concluded a year prior. Despite presenting supporting documentation, Transport Canada attributed the issue to a submission form error, rendering resubmission or reimbursement impossible due to the program closure.
Under both the old and new EV incentives programs, dealerships are required to apply the $5,000 rebate during the sale and then submit a claim for reimbursement to the government. Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, highlighted the financial strain on dealerships acting as intermediaries for the government.
While the exact number of dealerships awaiting reimbursements remains unclear, Williams emphasized the need for Transport Canada to honor outstanding payments and ensure a smoother reimbursement process under the renewed program. The initial EV rebate program operated from 2019 to 2025, with funding exhaustion leading to its temporary suspension in January 2025.
Transport Canada reopened the rebate program briefly last summer to address pending claims, confirming that all eligible reimbursements submitted during the program or the subsequent administrative window had been processed. Calls for transparency and prompt resolution of outstanding cases have been echoed by industry stakeholders, urging collaboration to advance EV adoption nationwide.