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Ottawa to Reimburse Dealers for $11 Million in Unpaid EV Rebates

Dealers will attend a government webinar on Friday explaining how to claim payments for rebates they fronted after the program paused in January.

An electric vehicle is charged at a Tesla charging station in Ottawa on Wednesday, July 13, 2022. THE CANADIAN PRESS/Sean Kilpatrick
Minister of Transport and Internal Trade Chrystia Freeland responds to a question during question period in the House of Commons on Parliament Hill in Ottawa on Thursday, June 12, 2025. THE CANADIAN PRESS/Sean Kilpatrick
An electric vehicle charger is seen in Ottawa on June 27, 2023.

Overview

  • On Friday, Transport Canada will host a webinar to explain how dealerships can submit and receive payments for unpaid iZEV rebate claims.
  • The iZEV program, launched in 2019 with nearly $3 billion in funding, ran out of money on January 13 and left dealers to cover up to $5,000 per EV purchase.
  • Ottawa has frozen more than $43 million in Tesla rebate claims as Transport Minister Chrystia Freeland investigates potential irregularities.
  • Federal ministers have pledged to reintroduce consumer purchase incentives but have not provided a timeline for the next EV rebate scheme.
  • EV market share plunged from 18.29 percent in December 2024 to 7.53 percent in April 2025 after the program’s abrupt suspension prompted buyers to delay new purchases.