The federal electric vehicle (EV) rebate program has been relaunched today, with some Canadian auto dealers expressing concerns about outstanding funds from the previous initiative. Canadians are now eligible for government rebates of up to $5,000 for EVs priced under $50,000, while plug-in hybrids can receive $2,500 in subsidies.
Car dealerships are pleased with the revival of the program, although they remain cautious due to the delay in the government’s portal for submitting reimbursement claims, which is set to launch in April. Dean Woods, a sales manager at a Kia dealership in Grimsby, Ont., expressed unease about the situation, emphasizing the need for close monitoring of all claims to ensure transparency.
Woods disclosed that his dealership is owed $20,000 from the previous program after Transport Canada declined to reimburse rebates for EVs sold by the dealership in 2024. The issue was only noticed a month ago by the office manager, prompting Woods to seek reimbursement from Transport Canada, which was denied citing the program’s closure a year prior.
Following persistent inquiries and submission of supporting documentation by Woods, Transport Canada acknowledged an error in the submission process. However, due to the program’s closure, resubmission or reimbursement was deemed unfeasible. Under both the past and current EV incentives programs, dealerships are required to apply the rebate at the point of sale and subsequently file for reimbursement from the government.
Huw Williams from the Canadian Automobile Dealers Association highlighted the financial burden placed on dealerships, emphasizing the need for flexibility from Transport Canada in resolving outstanding reimbursement issues. While the exact number of dealerships awaiting reimbursements remains unspecified, Williams stressed the importance of prompt reimbursement given the government’s allocation of $2.3 billion for the incentive program.
The initial EV rebate program operated from 2019 to 2025, with funding depletion leading to its suspension in January 2025. Transport Canada temporarily reopened the rebate program last summer for a month to allow outstanding claims to be submitted. The department confirmed that all eligible reimbursement claims submitted before the program’s pause or during the temporary window last summer have been processed and paid.
Transport Canada has yet to address inquiries regarding submission form errors preventing claims, underscoring the importance of timely and transparent communication to address outstanding reimbursement issues effectively.