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 are now eligible for government rebates of up to $5,000 for EVs under $50,000 and $2,500 for plug-in hybrids.
Despite the positive response from car dealerships, some remain cautious as the government’s reimbursement portal won’t be available until April. Dean Woods, sales manager at a Kia dealership in Grimsby, Ont., voiced apprehension due to an outstanding $20,000 from the previous program that Transport Canada refused to reimburse.
Woods discovered the issue a month ago when the dealership’s office manager noticed the lack of reimbursement for EV rebates sold in 2024. After pressing Transport Canada and providing documentation, it was revealed that an error in the submission form prevented the claims from being processed.
Under both the previous and current programs, dealerships are required to apply the rebate at the point of sale and then submit a claim for reimbursement. Huw Williams from the Canadian Automobile Dealers Association highlighted the financial burden placed on dealerships and emphasized the need for prompt reimbursements by Transport Canada.
With the reintroduction of the incentive program and a budget of $2.3 billion allocated, Williams urged Transport Canada to prioritize reimbursing dealerships awaiting payments. The initial EV rebate program ran from 2019 to 2025, with the government pausing it in January 2025 due to funding depletion.
Transport Canada reopened the rebate program temporarily last summer to address outstanding claims. Department spokesperson Flavio Nienow confirmed that all eligible claims submitted during the program pause or the temporary administrative window have been processed and paid.
As dealerships seek resolution for outstanding reimbursements, Williams emphasized the importance of fair and efficient reimbursement processes to support the adoption of EVs nationwide.