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  1. Home
  2. Federal government to reimburse EV stores and dealerships for iZEV rebates

Federal government to reimburse EV stores and dealerships for iZEV rebates

July 11, 2025

The federal government just announced that EV stores and dealerships that advanced the iZEV rebates to customers in January of 2025 will finally be reimbursed.

Federal government to reimburse EV stores and dealerships for iZEV rebates  

The federal government just announced that EV stores and dealerships that advanced the iZEV rebates to customers in January of 2025 will finally be reimbursed.  

On Friday, January 10th, the Federal Government announced that the iZEV program would be paused once all available funds were exhausted. Just three days later, on January 13th, the government confirmed that the funds had been fully depleted and the program was officially on hiatus. Unfortunately, this short notice left many Canadian EV stores and dealerships without sufficient time to submit their iZEV documentation. As a result, they were forced to cover the $5,000 incentive per electric vehicle that had already been promised to customers. 

EMC quickly recognized that the abrupt suspension of EV rebates was disproportionately harming the EV retailers and dealers who had invested the most effort in promoting electric vehicle sales. Considering Canada’s EV sales targets, we felt that it was particularly unfair to them as they were losing money for doing the right thing.  

It is worth noting that Electric Mobility Canada was the first Canadian organization to advocate for reimbursing these stores and dealerships. 

As early as January 16, EMC proactively reached out to traditional OEM and dealer associations in an effort to find a collaborative solution that would support Canadian stores and dealers. However, these organizations declined to engage. Instead, they used the pause on the federal EV rebate as an opportunity to hold another press conference that week, reiterating their call to end the ZEV mandate. 

We are pleased to report that the government has agreed and affected stores and dealerships will receive full reimbursement. 

Tesla Canada cleared of any wrongdoing in the iZEV program 

Furthermore, we are pleased to note that Tesla Canada employees have been cleared of all implicit and sometimes explicit accusations of wrongdoing made against them by certain representatives of the traditional automotive industry in connection with the iZEV program. 

We hope that those who made these unfounded accusations will take responsibility and offer a formal apology. 

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