Dealerships that covered customer incentives out-of-pocket can now submit claims for repayment of EV rebates until Aug. 11
EV dealerships in Canada have until August 11 to claim unpaid rebates for sales after iZEV was discontinued in January 2025.
Dealerships that covered customer incentives out-of-pocket can now submit claims for repayment of EV rebates until Aug. 11
The Canadian government has announced it will reimburse car dealerships that covered the cost of electric vehicle (EV) rebates for customers after the sudden suspension of the Incentives for Zero-Emission Vehicles (iZEV) program in January 2025.
The iZEV program offered customers up to $5,000 off the purchase of a new zero-emission vehicle. But its abrupt suspension earlier this year, after nearly $3 billion in funding was exhausted, caught the industry off guard.
Although the government had issued a brief warning that funds were running low, many dealerships continued to process purchases under the assumption that reimbursement would still be available.
According to the Canadian Automobile Dealers Association, dealers collectively advanced an estimated $11 million in rebates to customers that they were later unable to recover once the program was shut down.
Reimbursement process
Transport Canada has temporarily opened access to a ZEV claims portal, allowing dealerships, automakers and authorized sellers to submit outstanding claims.
Eligible claims must meet all the original program’s criteria and apply to vehicles delivered between April 1, 2024, and January 12, 2025. Additionally, the rebate must already have been provided to the customer.
Each enrolled participant may file up to 25 claims per day through the portal.
The ZEV portal will remain open until August 11.
EV sales slump
The sudden withdrawal of federal EV incentives had an immediate impact on the market.
EV sales, which had reached a record 18.29 per cent of all new vehicle sales in Q4 2024, dropped sharply to 8.7 per cent in Q1 2025, according to the latest Statistics Canada data.
Industry groups have warned that the loss of federal incentives risks stalling Canada’s transition to zero-emission transportation, particularly at a time when affordability remains a major barrier to adoption.
While the federal government has said that it is working on reinstating a federal zero-emission vehicle rebate, no firm details or timelines have been announced yet.
