The federal electric vehicle (EV) rebate program has been relaunched, offering Canadians up to $5,000 in rebates for EVs under $50,000 and $2,500 for plug-in hybrids. Car dealerships are pleased with the program’s return, although concerns linger due to the delayed launch of the government’s reimbursement portal until April.
Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., expressed unease over the situation, as his dealership is still owed $20,000 from the previous program. Despite selling EVs in 2024 and applying for rebates, Transport Canada declined reimbursement, citing the program’s closure a year ago.
After Woods persisted and provided supporting documentation, Transport Canada acknowledged an error in the submission process, yet clarified that resubmission or reimbursement was no longer feasible since the program had concluded. Under both the old and new programs, dealerships must apply the rebate at the point of sale and later seek reimbursement from the government.
Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, highlighted the financial burden on dealerships, emphasizing the need for prompt reimbursements from Transport Canada to resolve outstanding cases. With the government allocating $2.3 billion for the incentive program’s revival, Williams urged timely payments to dealers who fronted money to consumers.
The original EV rebate program operated from 2019 to 2025 before being paused in January 2025 due to funding depletion. Last summer, Transport Canada briefly reopened the program to address outstanding claims, ensuring that all eligible reimbursements were processed.
While Transport Canada confirmed payment for all valid claims submitted during the program’s operation or the subsequent administrative period, unresolved cases involving submission errors await further clarification from the department. The industry now looks to the government to honor its commitments, settle outstanding claims, and propel nationwide EV adoption.