The federal electric vehicle (EV) rebate program has been relaunched today, but some Canadian auto dealers are reporting significant financial losses from the previous iteration. Canadians are now eligible to receive up to $5,000 in rebates for EVs priced under $50,000, with plug-in hybrids qualifying for $2,500 in subsidies.
While car dealerships are pleased with the program’s return, there is caution among some dealers due to the delay in the government’s reimbursement claims portal launch scheduled for April. Dean Woods, a sales manager at a Kia dealership in Grimsby, Ontario, expressed concerns about unresolved reimbursements from the previous program, amounting to $20,000.
Transport Canada declined to reimburse the dealership for EV rebates applied to sales made in 2024. Despite efforts to claim reimbursement, the department cited the program’s closure a year ago. After further investigation, Transport Canada acknowledged an error in the submission process, but given the program’s closure, resubmission or reimbursement was deemed impossible.
Under both the old and new EV incentives program, dealerships must apply the $5,000 rebate during the purchase and later submit claims for reimbursement. Huw Williams from the Canadian Automobile Dealers Association highlighted the financial burden on dealerships, noting challenges in receiving timely reimbursements from Transport Canada.
The association has received cases from dealerships facing reimbursement rejections, leading to uncertainty among dealers about submitting claims. With the reintroduction of the incentive program and allocated funds of $2.3 billion, Williams emphasized the importance of reimbursing dealers promptly to foster trust and encourage EV adoption nationwide.
The initial EV rebate program operated from 2019 to 2025, with funding exhausted in January 2025, prompting a pause. Transport Canada reopened the program temporarily last summer to allow pending claims to be submitted and processed. The department confirmed that all eligible reimbursement claims submitted before the program pause or during the temporary reopening have been settled.
Transport Canada’s commitment to resolving cases where submission errors hindered claims remains unclear. The government’s proactive measures are essential to address outstanding reimbursements, build confidence among dealers, and promote the widespread adoption of EVs across Canada.