Tesla Reportedly Sues Ontario Government For Tax Credit Discrimination

AUG 17 2018 BY VANJA KLJAIC 33

The tax credit cut seems more and more like a nearsighted move

For the Ontario government, the term “ambivalent” is best used if we’re to describe their EV incentives policy. After the new Ontario government took office, there was little doubt that they are going to end the cap-and-trade program. After all, it was part of their political campaign goals. The program basically allowed users to trade-in their cars for an up to $14,000 CAD rebate on their new plug-in hybrid or electric vehicle. The EV incentives program was supported from the 10-cent per liter tax fuel tax, which has now gone away.

However, the fallout of the incentive cut is slowly beginning to cover the Canadian political scene, as Tesla is reportedly suing the Ontario government for tax credit discrimination.

According to various sources, Tesla is alleging it has suffered “substantial harm” and lost sales amid the cancellation of the electric vehicle rebate. The mid-July cut off the province’s Electric and Hydrogen Vehicle Incentive Program (EHVIP), brought on by the previous Liberal government and scrapped by the Ontario Premier Doug Ford, left a bad taste in Tesla’s mouth. When the government canceled the program, the province promised to honor the incentive for those customers who have their vehicle delivered, registered and plated before September 10th – but, only if the purchase was made from a dealer, not directly from a manufacturer. And guess what, that targets Tesla pretty directly, proving to be fertile ground for a lawsuit.

The lawsuit – filed with the Ontario Superior Court of Justice by Tesla Canada – states the company is an Ontario-licensed Tesla dealer, arguing that their customers no longer qualify for an incentive, unlike those buying electric cars from other companies. For Tesla Canada, their argument is that the local government “deliberately and arbitrarily” excluded its customers, without providing any warning or the chance to offer any input over the matter.

“The Minister of Transportation’s decision suddenly left hundreds of Tesla Canada’s Ontario customers in the unfair position of no longer being eligible for the rebate they had expected to receive when they ordered their vehicles,” the lawsuit states. While purchasers of other brands and from other dealers will still receive the rebate during the transition period.”

According to CBC, a spokesperson for the Ministry of Transportation acknowledged the pending lawsuit, but declared not to comment on the matter.

“As this matter is before the courts, it would be inappropriate to comment,” said Bob Nichols in an email to CBC Toronto.

While the lawsuit and business aspect of Tesla is one thing, the damage this cut of the incentive tax for EVs is a dumbfounded move. It’s becoming clearer by the day that legislative and government figures are misplaced, out of touch with reality and completely careless about their citizen’s future. It’s happening all over the place in North America and hopefully, someone will put an end to this real soon. Ultimately, Ontario is set to gain a gas price reduction of just 10 cents per liter, while cutting costs for Ontarians by $1.9 billion per year.

Ontario is currently banking on lower interest rates, but its overall GDP growth is forecasted to drop from 2.7 percent to just 1.9 percent. There’s trouble up north, but the $1.9 billion CAD is a small part of the $152.5 billion projected revenue for Ontario in 2018-19. We can debate whether this is a needed move until the cows come home, but if Tesla wins this lawsuit, there is going to be a lot of shakeups in the political scene in Ontario, fueled by the reevaluation of the need for the incentives cut overall.

In the end, if we want to keep the beautiful images of our nation’s natural heritage for generations to come, moves like these should never be a part of any official policy or a politicar program. That’s a fact.

Source: Hats off for the tip to John Dixon from the Tesla Owners Club Ontario and Kenneth Bokor

Categories: Tesla

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33 Comments on "Tesla Reportedly Sues Ontario Government For Tax Credit Discrimination"

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Will

New government. Everything is going to be reverse. Next time vote

Joshua Burstyn

I did. Stupid won.

Chris O

Another sign that there is a lot of undermining of Tesla going on globally, it’s not just the highly visible FUD campaign that went into overdrive over the past year or so in the MSM and the social media, it’s also lobbying behind the scenes for Tesla unfriendly legislation.

Get Real

And I think you will find a lot of disrupted monied interests behind all of it.

Mark.ca

They have a case here. If you cut then cut for everyone or leave it alone. Only if you buy from a dealer? Is an ev from a dealer less polluting than one straight from the manufacturer? If you are in the big oil pockets then the answer is yes.

Ron M

Completely unfair to the citizens of Ontario to pull the rug out from under them by removing a subside after an order has been placed. Glad that Tesla is standing up for the citizens of Ontario. It seems hard to believe the courts will allow citizens who ordered cars not to get the rebate. I would also think they may be forced to provide a phase out period and comments.

Kdawg

Doug Ford is the Canadian version of Trump. His brother was the crack-head mayor of Toronto as well. I’m sure corruption is behind most/all of his decisions.

Clarity

Yes unfair. Tax credits for all or none. Same situation here in Texas. No rebates for Tesla but every other Bev/phev get one. I guess it all depends on who has the lobbying money.

BoltEV (was SparkEV)

Which Clarity are you?

Clarity

Phev

(⌐■_■) Trollnonymous

lol, and we in the US thought our gooooberment is phuk3d up…….LMAO

Prsnep

Um, your government is most certainly phuk3d up. Events in Ontario doesn’t change that.

Jack

Suing Germany and now Ontario. C’mon if you’re cars are that great you don’t need incentives. But obviously they can’t sell their crap without incentives

Mark.ca

Are you really that stupid that you don’t understand what this is about?

Bill Howland

As you normally are, you are totally clueless again. You can stomp your feet and wish things were different but the average people have spoken.

You guys only like Democratic elections when they agree with you, but you want fascism when they don’t.

Mark.ca

Bill, you are having verbal diarrhea again. Any meds you can take for that?
How can you be this dumb and not see that the other evs are still getting the credit while only Tesla is left out? I’m not surprised, it’s you after all.

Bill Howland
What a dopey answer. Tesla has not been singled out in the past, but they will be In the future on PRICE.. They will be hit on price in the future, as the ‘EV Society’ proposal has NO BENEFIT for any car over C$50,000. That is the PROPOSAL. Since the C$14,000 tax credit had no upper limit on the price of the car – the problem was one of timing. They cancelled the credit and Teslas which missed the date were out of luck. I bought my BOLT ev 2 weeks prior to an overdue $2000 tax credit actually took effect. I called and found there is nothing retro active due me, even though legally they were LATE in offering the credit. I got over the fact that it was just luck of the draw I missed out on the credit. Besides, this law affects me in that I have friends interested in purchasing Teslas or other EV’s and now there is NOTHING. Your silly commentary has nothing to do with anything as you are 2,000 miles away in a different country. Since I don’t take meds, its obvious you are chomping at the bit to argue with someone. With… Read more »
Mark.ca

“the province promised to honor the incentive for those customers who have their vehicle delivered, registered and plated before September 10th – but, only if the purchase was made from a dealer, not directly from a manufacturer.”
Bill, get help.

Bill Howland
Ok, I have no idea why that arcane bit of text was placed in the law, other than complications that might have occurred if they enforced that with a dealer – or someone who Already owned a car. Doesn’t seem like a big deal to me. Perhaps it was put in there so as to not intentionally bankrupt an auto dealer who happened to own the cars (not typical), but hadn’t sold them to the final customer as of yet, whereas that is not a problem with a direct sale since the manufacturer could sell them elsewhere easily. The ‘Get Help’ thing is part of your “know it all attitude”. If you really knew much, your arrogance would be much easier to tolerate. But you, and people like you, are really part of that California Mentality where you think that in general, you are so much smarter than anyone else. SO then why was it up to me to find a reasonable reason for the way the law was worded instead of assuming the worst? The main point is, it affects me since it affects some of my friends. But you’re really just an insulting loudmouth 2000 miles away in… Read more »
Bill Howland

Jack you are apparently the only one here who understands things… Ford won because work-a-day Canadians DID NOT want to pay for rich people’s $60,000 – $130,000 playthings. SO why doesn’t Tesla sue the vast majority of Ontario who voted for Ford?

If Tesla is suing these 2, they probably should do NY state, to be consistent. A bolt ev gets $2000 since it is low priced, but Teslas only get $500 since they are too expensive.

In all cases it has become politically untenable in most areas to give WILD BONANZAS to rich people.

The Ev Society of Canada, which I attend, (the only foreigner in the group), is now advocating TEMPORARY, very mild benefits, with a cap of $50,000 on the price of the car. Since there is NOTHING at the moment, they are trying for a $3000 to $5000 benefit for LOW PRICED CARS. And they want NOTHING for rich people (any Tesla costing over $50,000 which is basically all of them).

So now is Tesla going to sue my electric car advocacy group, and also the State where I live, even though its a “Blue-Democrat” one?

(⌐■_■) Trollnonymous

I never could understand that why, if you want EV’s to sell and clean the air etc…, would you handicap the most desirable/purchased EV that’s available by omitting it from any incentives. That’s counter productive and just plain dumb……unless your pocket was line by NADA or OPEC………LMAO

Seriously, everyone pays their share of taxes that is set by gooberment and local/state.

Aren’t we in the “Everyone gets a Trophy” society?
😛

Brett

60% of the voters in Ontario voted for the Liberal, NDP or Green Party, all of whom would have kept the EV credit as it was, or even expanded it.

So unless less than 50% of Ontario is made up of non-‘Work a day’ Ontarians, your assertion is without merit.

Joshua Burstyn

Exactly

Bill Howland

Like you know what you’re talking about.

Bill Howland

During a discussion – at the Canadian car club – none of the Canadians there voiced any doubt as to who fairly won election. Not a single one of 20 people voiced any objection. No offense but I’ll believe them.

Brett

You’ll note I never commented on the fairness of who won the election. I’m simply highlighting your ignorance of how a First Past the Post election works and how a party without a popular majority of the votes can win a legislative majority, and is able to enact whatever policies they like, regardless of what the actual majority of people in its jurisdiction desires.

Its just a fact, the popular majority didn’t choose the government’s policy, nor did they choose the government. If you doubt it, look at the share of the popular vote that the Conservative government won in the 2018 election. You can believe someone who actually lives in the province in question, who is telling you to actually look at the provinces data, rather than assuming a random 20 person sample is indicative of the policy desires of an entire province.

Bill Howland

You guys are just chomping at the bit to insult someone. When I said the majority, I should have said plurality.. But it is obvious what I meant that more people voted for the winner than anyone else.

But you ramble on as if to lecture over a microscopic point, just to hear yourself talk.

The Canadian Ev group I attend has such friendly people in it, not fault-finding loud mouths who just jump at the chance to insult over silly childish issues.

You don’t realize it but you guys are scaring many reasonable people away from EV’s. Sorry that not enough can see your immaturity.

Bill Howland

Its up to the people there to decide whom they want. And also the way they select their officials.

Noted that you don’t like the result.

Davek

Nice pictures of Ontario, at least…

paul k

Not the only bone headed act by this new gov’t. They pulled the plug on an under construction wind turbine facility in Prince Edward County. A place where the proverbial village idiot or stray dog could run as a conservative and win. Five of the turbines are fully built and will now have to be de-comissioned. There is going to be a huge lawsuit over this as well.

Kenneth Bokor

It was definitely a shocker when they announced the discrimination against Tesla on this rebate cancellation. I immediately wrote the Premier’s office and my local MPP and got the standard canned-response back. Very disappointing start with this new government and I hope that Tesla wins this suit.

DP

Ford government does U-turn, expands electric vehicle rebates for Tesla buyers:
https://www.cbc.ca/news/canada/toronto/tesla-motors-canada-provincial-government-superior-court-decision-1.4806759