Canada’s newly appointed Minister of Industry Mélanie Joly has confirmed the federal government plans to reinstate its popular EV rebate program. However, whether Tesla will be considered eligible for the rebate program remains uncertain.
Speaking to reporters after meeting with General Motors officials in Oshawa last week, Joly stated that reviving the Incentives for Zero-Emission Vehicles (iZEV) program is a top priority.
“It is definitely our intent to make sure that Canadians can benefit from lower prices on electric vehicles,” said Joly. “We know that it’s important for our auto sector and for Canadians to have access to affordable electric vehicles.” (via Canadian Auto Dealer)
Launched in 2019, the iZEV program offered up to $5,000 in federal rebates for qualifying battery electric vehicles (BEVs) and up to $2,500 for plug-in hybrids. However, a surge in demand earlier this year—triggered by the announcement that the program was running low on funds—led to all available funding being depleted more than two months ahead of schedule. As a result, the program was abruptly paused and left with an uncertain future ahead of the federal election.
Will Tesla Be Left Out?
While the return of the rebate program is welcome news for EV buyers, uncertainty remains over whether Tesla will be included in the revamped iZEV initiative. In April, Transport Minister Chrystia Freeland stated that Tesla vehicles would be excluded from any future federal EV incentive programs “as long as illegitimate and illegal U.S. tariffs remain in place.”
This statement followed what was framed as a major controversy involving Tesla Canada by mainstream media. In the final days of the program Tesla filed $43 million in rebate claims over a single weekend. The federal government responded by freezing those payments and launching an investigation into the automaker’s claims.
In a strongly worded letter to Transport Canada, Tesla defended its actions, insisting the filings were for eligible sales made before the funding ran dry and were submitted in accordance with program rules. The company accused the government of poor communication and defended its track record of investing in Canadian jobs and clean energy infrastructure.
What’s Next?
Although the iZEV program’s return appears certain, details around eligibility criteria, rebate levels, and the timeline for its official return remains unannounced. Minister Joly indicated that the government is actively working with the Ministry of Finance to design the updated incentive structure, but stopped short of providing a specific launch date. Without an official date, it could still be several months—or longer—before new funding is allocated and the program is relaunched.
