The revived federal electric vehicle (EV) rebate initiative is commencing today, with some Canadian auto dealers expressing concerns over unresolved reimbursements from the previous program.
Canadians are now eligible for government rebates of up to $5,000 for EVs priced under $50,000, while plug-in hybrids qualify for $2,500 in subsidies.
Despite the positive reception of the program’s return by car dealerships, some remain cautious as the government’s reimbursement claims portal is not set to launch until April.
Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., voiced apprehension, citing a $20,000 outstanding balance from the previous program. Transport Canada declined reimbursement for rebates issued for EV sales in 2024, as the dealership failed to notice the oversight until recently.
After persistent follow-ups and providing supporting documentation, Transport Canada attributed the issue to a submission error, noting that resubmission or reimbursement is no longer feasible due to the program’s closure.
Under the current and previous EV incentive programs, dealerships are required to apply the $5,000 rebate at the point of sale and subsequently file a claim for reimbursement from the government.
Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, emphasized the financial burden on dealerships fronting money for the government and highlighted the lack of flexibility in resolving past reimbursement issues.
With uncertainties surrounding the number of dealerships awaiting reimbursements, Williams urged Transport Canada to address outstanding payments promptly with the reintroduction of the incentive program.
The original EV rebate program operated from 2019 to 2025, pausing in January 2025 due to funding depletion. In response to outstanding claims, Transport Canada briefly reopened the program last summer for pending submissions.
Transport Canada assured that all eligible reimbursement claims submitted during the program’s operation or the subsequent administrative period have been processed and paid. However, inquiries regarding submissions with errors impeding claims remain unanswered at present.