How to Apply to the iMHZEV Program: Step-by-Step Guide
The Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program provides point-of-sale incentives to help Canadian organizations purchase or lease eligible medium- and heavy-duty ZEVs. Incentives are applied by the dealership or authorized seller and can reach up to $200,000 per vehicle, depending on class and configuration.
Important status note: On January 10, 2025, Canada announced a pause for the light‑duty iZEV program. This does not apply to iMHZEV. As of today, the iMHZEV Program continues and is scheduled to run until March 31, 2026, or earlier if funds are exhausted. Always verify availability at the time of purchase or lease.
This step-by-step guide explains how to apply for iMHZEV through your dealer, what documents you need, how lease proration works, timelines, and how to avoid common mistakes.
Overview of the iMHZEV Program
The iMHZEV Program, administered by Transport Canada, lowers the upfront cost of eligible new medium- and heavy-duty ZEVs by applying a federal incentive directly to the bill of sale or lease agreement. The incentive is processed at the point of sale by a registered dealership or other authorized seller (including automakers and upfitters/finishers).
Key features:
Point-of-sale incentive applied after taxes and fees are added to the invoice.
Only Canadian organizations with an office registered in Canada are eligible; individuals are not eligible.
Only new vehicles listed on the official eligible vehicles list qualify; demonstrators under 10,000 km are treated as new.
Leases of less than 48 months are prorated; minimum 12-month term required.
Federal incentive may be stacked with provincial/territorial incentives, up to 75% of the vehicle’s MSRP combined.
Annual recipient limits: up to 10 incentives or $1,000,000 per calendar year, whichever comes first.
What iMHZEV funds:
Purchases and leases of eligible new medium- and heavy‑duty ZEVs (battery-electric, hydrogen fuel cell, and qualifying plug‑in hybrids).
Incentive amounts vary by vehicle class and configuration (for example, up to $200,000 for Class 7/8 coach and Class 8 fuel cell vehicles; amounts scale down through Classes 8, 7, 6, 5, 4, 3, 2B; MDPVs under $100,000 MSRP may receive $5,000).
Eligibility Requirements
Use this quick checklist to confirm eligibility before you approach a dealership.
Eligible applicants (organizations only):
Canadian businesses (SMEs and large corporations) with an office registered in Canada
Non-profits and charities
Municipalities and other local authorities
Provincial and territorial governments with fleets (limits applied by level of government)
Indigenous organizations and communities
Crown corporations and public sector fleets, where applicable
Not eligible:
Individuals
Organizations without a Canadian office or registration
Vehicle eligibility:
New zero-emission vehicles only (battery-electric, plug-in hybrid electric, hydrogen fuel cell)
Medium- or heavy-duty vehicles with a Gross Vehicle Weight Rating (GVWR) over 8,500 lb
Must meet applicable Canadian Motor Vehicle Safety Standards
Must be available for order/purchase/lease in Canada and registered in the eligible recipient organization’s name (as applicable)
Intended for use on public roads and paved surfaces
Listed on the official “Eligible vehicles” list (by year, make, model, and configuration)
Special rules for Classes 2B and 3:
To receive commercial-class incentives, vehicles must meet at least one commercial criterion (for example, seating for 9+ passengers; cargo box at least 183 cm in interior length; truck with container attachment capabilities like chassis cab).
If a Class 2B or 3 vehicle does not meet the commercial criteria, it may be treated as a Medium‑Duty Passenger Vehicle (MDPV) and is eligible for $5,000 if the MSRP is $100,000 or less.
Inclusions and potential exclusions:
Demonstrators are eligible if odometer is under 10,000 km.
Vocational on-road trucks (e.g., refuse, dump), shunt/yard, and drayage trucks are eligible.
Shuttle or coach buses can be eligible; transit and school buses may be excluded.
Off-road vehicles and RVs may be excluded.
Annual limits:
Up to 10 incentives or $1,000,000 per calendar year, whichever comes first.
Limits for businesses apply at the organization level, not by department/division; common ownership may be aggregated.
For governments with fleets, limits apply by level of government (provincial, territorial, municipal).
Unused incentives cannot be carried over to future years.
Required Documents
Prepare these documents to streamline the dealership’s eligibility assessment and point-of-sale application:
Organization identification:
Business number or proof of registration in Canada
Legal name and address of the organization and operating name (if applicable)
Proof of authorized signing authority (e.g., corporate resolution or authorization letter)
Program forms:
Organization Consent Form (completed and signed as part of eligibility verification)
Incentive Received Form (completed once eligibility is confirmed and finalized at point of sale)
Transaction documentation:
Purchase order or lease agreement draft with term and mileage (for leases)
Final bill of sale/lease showing taxes and fees applied before the incentive
VIN and vehicle configuration details matching the eligible vehicles list
Lease term evidence (12, 24, 36, or 48 months) for proration
Vehicle eligibility support:
Confirmation that the specific year/make/model/configuration appears on the eligible vehicles list
For Classes 2B/3 commercial status: evidence that the vehicle meets at least one commercial criterion (where relevant)
Stacking and disclosures:
Declaration of other public incentives (provincial, territorial, municipal) to ensure combined funding does not exceed 75% of MSRP
Any internal approvals or procurement justifications required by your organization
Tip: Provide the forms and corporate details to the dealer before the closing appointment to avoid delays.
Step-by-Step Application Process
Follow these steps to obtain the iMHZEV incentive at the point of sale.
Step 1: Confirm organizational eligibility
Verify that your organization is a Canadian entity with an office registered in Canada.
Ensure you have not exceeded the annual limit of 10 incentives or $1,000,000.
Step 2: Choose an eligible vehicle
Identify the vehicle’s year, make, model, and configuration on the eligible vehicles list.
Confirm GVWR, ZEV type (battery-electric, fuel cell, or plug‑in hybrid), and any class-specific rules.
For Classes 2B/3, determine whether the commercial criteria are met or whether the unit will be considered an MDPV.
Step 3: Select buy or lease terms (understand proration)
Decide between purchase or lease. For leases shorter than 48 months, the incentive will be prorated:
48-month lease: 100% of the class incentive
36-month lease: 75% of the class incentive
24-month lease: 50% of the class incentive
12-month lease: 25% of the class incentive
Minimum lease term is 12 months.
Step 4: Engage a registered dealership or authorized seller
Work with a dealership/authorized seller that is registered with the iMHZEV Program.
Confirm the dealer understands the iMHZEV process and will apply the incentive on the bill of sale or lease agreement.
There is no fee for your organization to obtain the incentive.
Step 5: Complete the Organization Consent Form
Provide corporate details and authorized signatory information.
The dealership uses this form to verify eligibility. Eligibility confirmations are generally time-limited (commonly up to 90 days); confirm the validity period with your dealer and plan closing accordingly.
Step 6: Dealer eligibility verification and file setup
The dealer reviews the eligible vehicle details, your corporate information, and any stacking with provincial incentives.
If you plan to stack incentives, ensure combined public support does not exceed 75% of the vehicle MSRP.
Step 7: Execute the sale or lease and complete the Incentive Received Form
The dealership applies taxes and fees first, then applies the iMHZEV incentive to the invoice.
You sign the Incentive Received Form at closing to confirm receipt of the incentive.
The incentive should appear as a line item reduction on the bill of sale or lease; you should not be asked for a deposit to receive the incentive, and the incentive is not typically issued later by cheque.
Step 8: Dealer submits reimbursement package
Only registered dealerships/authorized sellers can submit the reimbursement claim to the program.
Your organization does not submit reimbursement requests; retain copies of all signed forms and the final invoice for your records.
Application Timeline
Typical sequence and timing:
Vehicle selection and quote: 1–2 weeks (varies by availability and upfitting).
Eligibility verification: often completed quickly once the Organization Consent Form is provided; confirm any validity window (commonly up to 90 days) and schedule closing within that period.
Closing/point-of-sale: incentive is applied on the day the sale/lease is finalized after taxes and fees.
Dealer reimbursement: post-closing; processing times vary and do not impact your upfront reduction.
Program window:
Scheduled to run until March 31, 2026, or earlier if funds are exhausted. Apply early to reduce risk from funding constraints or supply delays.
Tips for a Successful Application
Start with the eligible vehicles list: verify the exact configuration (year, make, model, trim/upfit) appears on the list before you finalize procurement.
Align lease terms with needs: if leasing, consider whether a 48‑month term optimizes the incentive versus operational flexibility.
Document commercial criteria for Classes 2B/3: if you aim for the commercial incentive, prepare evidence that the vehicle meets at least one criterion.
Plan stacking carefully: coordinate provincial/territorial incentives and confirm that the combined total stays at or below 75% of MSRP.
Prepare signatory authority in advance: ensure the person who signs the forms has documented authority to bind the organization.
Keep procurement timelines tight: if eligibility confirmation has a validity window, align vehicle delivery and closing accordingly.
Confirm dealer registration: ensure your seller is registered with the program and experienced with iMHZEV submissions.
Maintain complete records: keep copies of both forms, the final invoice, VIN details, lease documentation, and any stacking declarations.
Common Mistakes to Avoid
Assuming all ZEVs qualify: only vehicles on the eligible list by specific configuration are eligible.
Missing the lease proration rules: signing a 24‑month lease expecting the full 48‑month incentive.
Exceeding annual limits: not tracking the organization’s cumulative incentives toward the 10 or $1,000,000 cap.
Ignoring commercial criteria for 2B/3: failing to document that the vehicle meets at least one criterion when pursuing the higher commercial incentive.
Expecting a cheque later: the incentive is designed to appear on the bill of sale/lease; it is not typically issued afterward by cheque.
Misordering taxes and fees: dealers must apply taxes and fees first, then apply the incentive.
Over-stacking: combining incentives that push total public support above 75% of MSRP.
Using used or off-road vehicles: only new, on-road vehicles are eligible; demonstrators must have under 10,000 km.
What Happens After You Apply
Post-closing steps:
The incentive appears on your final invoice as a reduction; your organization pays the net amount.
The dealership submits the reimbursement file to the program. You do not submit any claim.
Retain your documentation for audit/readiness: consent and received forms, invoice, lease, VIN/configuration proof, and stacking disclosures.
If the incentive was not applied at point of sale:
Contact the dealership immediately. In limited circumstances, a post‑sale remedy may be available; policies can change, so ask the dealer to confirm the current process and timelines.
If needed, escalate to an authorized seller representative or your fleet procurement contact to resolve promptly.
Changes, cancellations, or returns:
If a transaction is materially changed after closing (e.g., vehicle swap, term change), inform the dealership to ensure program compliance and correct reporting.
For cancellations/returns, the dealer will advise on any implications for the incentive and reimbursement.
Support:
For general inquiries, organizations can call 1‑800‑O‑Canada. Program-specific questions can also be directed through the dealership/authorized seller channel.
Conclusion
Applying for the iMHZEV incentive is a dealership-led process designed to reduce your invoice at the point of sale or lease. By confirming your organization’s eligibility, selecting a vehicle from the eligible list, aligning lease terms with proration rules, completing the Organization Consent Form and the Incentive Received Form, and coordinating any provincial incentives within the 75% MSRP cap, you can secure federal support of up to $200,000 per vehicle. Given that the iMHZEV Program is scheduled to run until March 31, 2026 (subject to funding availability), plan early with your dealer to lock in eligibility, documentation, and delivery timelines.
