The federal electric vehicle (EV) rebate program has been relaunched today, with Canadian auto dealers expressing concerns over outstanding reimbursements from the previous program. Canadians now have access to government rebates of up to $5,000 for EVs priced under $50,000, while plug-in hybrids qualify for $2,500 in subsidies.
While car dealerships welcome the return of the program, some remain cautious as the government’s reimbursement claims portal will not be operational until April. Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., expressed unease over the situation, citing a lack of trust in the system due to unresolved reimbursement issues from the previous program. The dealership is currently out $20,000 as Transport Canada declined to reimburse them for EV rebates applied to vehicles sold in 2024.
After persistent follow-ups and providing supporting documentation, Transport Canada attributed the reimbursement oversight to a submission error and 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 required to apply the rebate at the point of purchase and then submit claims for reimbursement.
Huw Williams from the Canadian Automobile Dealers Association highlighted the financial burden on dealerships, emphasizing the need for flexibility from Transport Canada in resolving reimbursement issues promptly. With a significant budget allocation of $2.3 billion for the incentive program, Williams urged the government to prioritize reimbursing dealerships still awaiting payments to facilitate the growth of EV adoption nationwide.
The initial EV rebate program operated from 2019 to 2025, with funding running out in January 2025, leading to a temporary pause. Transport Canada reopened the program for a month last summer to allow dealerships to submit pending claims. The department assured that all eligible reimbursement claims submitted during the administrative window had been processed and paid.
Transport Canada’s statement did not address inquiries regarding cases where submission errors hindered claims, underscoring the need for transparent processes to ensure timely reimbursements for dealerships.
