The federal electric vehicle (EV) rebate program has been relaunched today, with some Canadian auto dealers expressing concerns over unpaid reimbursements from the previous program. Canadians can now receive up to $5,000 in rebates for EVs priced under $50,000, while plug-in hybrids qualify for $2,500 in subsidies.
Although car dealerships are pleased about the program’s return, some are cautious due to the delayed launch of the government portal for submitting reimbursement claims in April. Dean Woods, sales manager at a Kia dealership in Grimsby, Ont., highlighted worries about the system, especially after his dealership was not reimbursed $20,000 from the previous program by Transport Canada.
The dealership realized the lack of reimbursement a month ago, leading Woods to request reimbursement from Transport Canada, which was denied citing the program’s closure a year ago. After further inquiry and providing supporting documentation, Transport Canada acknowledged an error in the submission process, but stated that resubmission or reimbursement was no longer possible as the program had ended.
Under both the old and new EV incentives programs, dealerships are responsible for applying the rebate at the point of sale and then submitting claims for reimbursement to the government. Huw Williams from the Canadian Automobile Dealers Association emphasized the financial burden on dealerships who effectively front the money for the rebates.
Williams stressed the need for timely reimbursements from Transport Canada, especially with the reintroduction of the incentive program and a $2.3 billion allocation. The government had paused the initial EV rebate program in January 2025 due to funding depletion, reopening it temporarily last summer for dealerships to submit pending claims.
Transport Canada stated that all eligible claims submitted before the pause or during the temporary reopening have been processed and paid. However, questions remain regarding cases where submission errors hindered claim submissions, to which the department has yet to respond.
The industry calls for fair treatment, urging Transport Canada to reimburse dealerships promptly and move forward collaboratively to promote EV adoption nationwide.
