The renewed federal electric vehicle (EV) rebate initiative begins today, with some Canadian auto dealers expressing concerns over outstanding funds from the previous program.
Canadians can now receive up to $5,000 in government rebates for purchasing EVs priced below $50,000, while plug-in hybrids are eligible for $2,500 in subsidies.
Although car dealerships are pleased with the program’s return, some remain cautious as the government’s reimbursement claims portal will not be operational until April.
Dean Woods, sales manager at a Kia dealership in Grimsby, Ont., voiced apprehension, stating, “It’s a bit concerning. My guard is up given the circumstances, and I will closely monitor every claim due to a lack of trust in the system.”
Woods revealed that his dealership is owed $20,000 from the previous program after Transport Canada declined to reimburse them for the EV rebates they had applied to vehicles sold in 2024.
Upon realizing the lack of reimbursement a month ago, Woods contacted Transport Canada for repayment, but the federal department rejected the request citing the program’s closure a year earlier.
Canada’s auto industry is optimistic that the government’s revival of EV rebates will stimulate sluggish electric vehicle sales, although some consumers remain concerned about limited range and charging infrastructure.
After persistent follow-up and providing supporting documentation, Transport Canada attributed the issue to a submission form error.
“Hence, you did not receive claim number confirmations for these four submissions, and they were not received by the iZEV Program,” stated a Transport Canada official in a letter to Woods last month, as shared with The Canadian Press.
“Had the program still been active, you could have resubmitted the claims. However, as the program is now closed, resubmission or reimbursement is no longer feasible.”
Both under the previous and current EV incentives scheme, dealerships are required to apply the $5,000 rebate during the sale and later submit a claim to the government for reimbursement.
Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, highlighted that dealerships essentially front the money on behalf of the federal government, despite its substantial treasury.
“Dealers are small, independent businesses, and historical issues have shown that Transport Canada has not always been flexible in resolving such matters,” Williams emphasized.
Williams could not provide an exact count of dealerships awaiting reimbursements from the government.