The revitalized federal electric vehicle (EV) rebate initiative is commencing today, although certain car dealers in Canada claim they are still owed substantial amounts from the previous program.
Canadians can now benefit from up to $5,000 in government rebates for the purchase of EVs priced under $50,000, while plug-in hybrids are eligible for $2,500 in subsidies.
The reestablishment of this popular program has been positively received by car dealerships. However, some remain cautious as the government’s platform for submitting reimbursement claims will not be operational until April.
“It’s a bit concerning,” remarked Dean Woods, sales manager at a Kia dealership in Grimsby, Ont. “I’m more vigilant given the circumstances, and I will be closely monitoring every claim since I no longer have faith in the system.”
Woods disclosed that his dealership is owed $20,000 from the previous program after Transport Canada declined to reimburse them for rebates applied to EVs they sold.
Although the cars were sold in 2024, the dealership’s office manager only realized a month ago that they had not been reimbursed by the government. Subsequently, Woods reached out to Transport Canada for reimbursement, but the federal department rejected the request citing the closure of the program a year ago.
Canada’s auto industry is optimistic that the government’s revival of EV rebates will accelerate sluggish electric vehicle sales, although some consumers still express concerns about limited range and charging infrastructure.
Following further pressure from Woods and the provision of supporting documentation, Transport Canada attributed the issue to an error in the submission form.
“Hence, you did not receive the claim number confirmations for these four submissions, and they were not received by the iZEV Program,” a Transport Canada official stated in a letter to Woods last month, which he shared with The Canadian Press.
“If the program were still active, you could have resubmitted the claims; however, since the program is now closed, resubmission or reimbursement is no longer feasible.”
Both under the previous and current EV incentives programs, dealerships are required to apply the $5,000 rebate at the time of purchase and then submit a claim to the government for reimbursement.
Huw Williams, a spokesperson for the Canadian Automobile Dealers Association, emphasized that this process entails dealerships fronting the money on behalf of the federal government, which possesses a substantial treasury.
“Dealers are small, independent enterprises, and in cases of historical issues, Transport Canada has not always exhibited flexibility in resolving the matter,” he added.
Williams could not provide an exact number of other dealerships still awaiting reimbursements from the federal government.