$122M in EV rebate claims made since start of new program as dealers wait to be paid

Ottawa – Canadians claimed more than $122 million in federal subsidies for new electric vehicles since Ottawa reintroduced its rebate program in February, but many car dealers say they’re still waiting to get the funds they are owed.

Transport Canada published the database for the new electric vehicles affordability program, known as EVAP, on Tuesday, three months after relaunching the program on Feb. 16.

The database shows 24,389 claims were recorded but doesn’t yet have a breakdown of the dollar figure per claim because of a technical glitch.

A department spokesperson, responding to inquiries from The Canadian Press, said it will update the data once the glitch is fixed. The department also confirmed the total amount of claims at $122 million thus far, leaving more than $2.1 billion available.

Ottawa allocated $2.275 billion toward the rebate program, which is to last up to five years.

But the Canadian Auto Dealers Association says many dealerships still have not been reimbursed under the new program, and some are waiting for more than $200,000 in rebates. The program is set up so dealers apply the rebate on the final bill and then seek reimbursement from Ottawa.

“The commitment to pay dealers in a timely manner has not happened in the early days of the program,” said Huw Williams, spokesperson for the dealers’ association.

“There does not seem to be an appreciation that the timelines for repayment are hurting business cash flow. This is money we are advancing on behalf of the federal government.”

Typos on claim forms

Williams said some dealers’ rebate claims have been denied because of typos on claim forms, such as filing a sale date from before the program’s Feb. 16 launch. He said there is no appeal or review mechanism for denied claims.

“All dealers lost a degree of confidence since the massive iZEV program delays last year. We want this program to succeed and we have made that clear to the government,” he said.

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In a statement to The Canadian Press, Transport Canada said it is aware of the concerns and is working on a fix. It also said it is reviewing cases where administrative errors may have led to rejected claims.

“There is no hold on repayments; complete and validated claims continue to be processed and reimbursed,” the department said.

“While Transport Canada aims to process complete and accurate claims as quickly as possible, timelines may vary depending on validation requirements and submission volumes.”

Ottawa launched the first federal EV rebate program in 2019, and renewed its funding several times before shutting it down in January 2025 when the final allocation of funds ran out.

Immediate effect

Electric vehicle sales plunged almost immediately — from a high of 18 per cent of all new vehicles in the final months of the first rebate program to below 10 per cent in the months after it was put on hold.

Sales jumped more than 80 per cent in March, compared to February, right after the rebates could be claimed again.

Ottawa set a target of putting 840,000 new EVs on the road by offering up to $5,000 toward the cost of a new EV, and $2,500 toward plug-in hybrids under the new program.

Vehicles sold after Feb. 16 are eligible for the rebates, but dealers couldn’t start filing claims to get the money until April 6. That date was a week later than the planned March 31 launch as Transport Canada worked to finalize the new claims portal.

The number of rebates in the first three months of the new program is similar to the number recorded in the final few months of the previous Incentives for Zero-Emission Vehicles program, better known as iZEV.

The rebates will decrease each year until they’re phased out in 2030 — or until the program’s funding runs out.

The rebates apply only to vehicles that cost less than $50,000.

Canadian-made EVs, which right now include only the Dodge Charger and the Chrysler Pacifica, are exempt from the $50,000 cap.

Since the new program was launched, 59 claims for Chargers and 14 for the Pacifica were made.

At 4,088 claims, the Toyota bZ was the most popular model for rebates, followed by the Chevrolet Equinox EV with 3,065 claims.

Imported EVs are only eligible for rebates if they come from countries with which Canada has free-trade agreements.

That means Chinese-built EVs — including Teslas — are shut out of the program. Teslas were by far the most popular cars under the former program and accounted for 30 per cent of all rebates claimed between October and November 2025.