Who Can Apply to the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program
The Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program helps Canadian organizations reduce upfront costs when purchasing or leasing eligible zero-emission trucks, vans, shuttles, and related on-road vehicles. Incentives are applied at the point of sale by an authorized seller after eligibility is confirmed.
Important program status note: the light-duty iZEV program was paused on January 10, 2025. This is a separate initiative. As of today, iMHZEV remains available nationally until March 31, 2026, or earlier if program funds are exhausted.
This guide explains who can apply to iMHZEV, how eligibility is defined, annual limits, geographic and vehicle requirements, and common edge cases so your organization can self-assess quickly and accurately.
Program Overview
iMHZEV is a federal point-of-sale incentive administered by Transport Canada for organizations that buy or lease eligible medium- and heavy-duty zero-emission vehicles (ZEVs). Incentive amounts vary by vehicle class and configuration and may reach up to $200,000 per vehicle in certain classes. Leases shorter than 48 months receive prorated amounts based on term length, with at least a 12‑month lease required.
Key characteristics:
Incentive applied by the dealership or authorized seller on the bill of sale or lease agreement after taxes and fees.
Only vehicles on the official eligible-vehicles list qualify, and only when new (demo vehicles with fewer than 10,000 km are treated as new).
Organizations may stack the federal incentive with provincial/territorial incentives, up to 75% of the vehicle’s Manufacturer’s Suggested Retail Price (MSRP).
Program runs to March 31, 2026, subject to available funding.
Applicant Type Requirements
Eligible recipients are Canadian organizations. Individuals are not eligible.
Eligible organization types include:
For-profit businesses of any size (SMEs and large corporations)
Non-profit organizations and registered charities
Municipal governments and public-sector fleets at the municipal level
Provincial and territorial government fleets
Indigenous organizations and communities
Educational, healthcare, and broader public-sector entities that are legally constituted organizations and can register vehicles in Canada
Foundational applicant rules:
You must have an office registered in Canada.
The vehicle must be available for order/purchase/lease in Canada and be registered in the name of the recipient organization in Canada.
The incentive is requested and applied by the dealer/authorized seller. Recipient organizations do not file reimbursement claims with the program directly.
The recipient named on the bill of sale/lease and vehicle registration is considered the eligible organization.
Clarifications:
There is no minimum fleet size requirement; both single-vehicle and multi-vehicle fleets may qualify.
Subsidiaries/divisions are typically counted at the organization level for annual limits (see “Size & Scale Criteria”).
Government fleets qualify by level of government (municipal, provincial/territorial), with limits applied per level.
Size & Scale Criteria
Annual limits ensure broad access:
An organization can receive up to 10 incentives or a maximum of $1,000,000 per calendar year, whichever comes first.
Business limits are applied at the organization level, not by department or division.
For provincial, territorial, and municipal governments, limits are applied by level of government, not by individual department or agency.
Additional compliance notes:
Unused incentives do not carry forward to future calendar years.
Organizations that share common ownership may be treated as one entity for limit purposes. This prevents multiple related entities (other than separate publicly listed corporations) from exceeding the combined annual cap.
Transport Canada may seek repayment if a recipient is later found to have exceeded program limits.
Geographic Eligibility
iMHZEV is a nationwide federal incentive. Eligibility applies across all provinces and territories, including Ontario, Québec, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
Geographic rules to consider:
The organization must be legally established with an office registered in Canada.
The vehicle must be available for order/purchase/lease in Canada.
The vehicle must be registered in Canada in the recipient organization’s name.
Cross-border purchases that cannot be registered in Canada or are not available for Canadian order/purchase/lease are not eligible.
These rules support practical deployment in regions such as the Greater Toronto Area, the Montreal region, the Lower Mainland, the Calgary region, and the National Capital Region.
Project & Activity Requirements
iMHZEV focuses on on-road vehicle acquisition or leasing. To receive the incentive, your transaction must align with these project/activity criteria:
Core vehicle requirements:
New vehicle only: previously unregistered vehicles qualify; demonstrators are eligible if odometer reads under 10,000 km.
Zero-emission powertrain: battery-electric, plug-in hybrid electric (PHEV), or hydrogen fuel cell.
Vehicle class: medium- or heavy-duty, with Gross Vehicle Weight Rating (GVWR) greater than 8,500 lb.
On-road intent: the vehicle must be intended for use on public streets, roads, highways, or other paved surfaces.
Safety compliance: the vehicle must meet Canada’s Motor Vehicle Safety Standards, where applicable.
Listed eligibility: the exact year/make/model/configuration must appear on the eligible list at the time of purchase or lease.
Lease and purchase terms:
Minimum 12-month lease term; 48-month leases receive the full class incentive.
Leases under 48 months receive a prorated incentive based on term length.
Commercial vs. MDPV rules for Classes 2B and 3:
Vehicles in Class 2B and 3 must either meet commercial-vehicle criteria or be treated as Medium-Duty Passenger Vehicles (MDPVs).
Commercial criteria are met if one or more of the following apply:
Seating capacity of 9 passengers or more
Cargo area at least 183 cm (72 in.) in interior length (e.g., pickup box/bed)
Truck with container attachment capability (e.g., chassis cab)
If a Class 2B or 3 does not meet commercial criteria, it may be considered an MDPV, which is only eligible if the MSRP is $100,000 or less.
Vehicle types commonly supported:
Zero-emission vocational on-road trucks (e.g., refuse, dump, drayage, yard/shunt)
Cargo and delivery vans, step vans, utility vans
Zero-emission shuttle and coach buses (non-transit/school-bus contexts)
Potential exclusions (verify on the eligible list and program guidance):
Public transit buses and school buses
Recreational vehicles (RVs)
Off-road vehicles
Financial & Operational Criteria
Understanding how the incentive is applied will help you plan budgets and compliance:
Point-of-sale application: taxes and fees are applied first, then the iMHZEV incentive is deducted on the bill of sale/lease.
No deposit requirement: recipients should not be asked to place a deposit to receive the incentive.
No after-the-fact cheques: the incentive should appear directly on the transaction paperwork; it is not designed as a later reimbursement to recipients.
Dealer submission: only registered dealers/authorized sellers submit documentation to Transport Canada to be reimbursed by the program; recipient organizations do not submit claims.
Stacking with provincial/territorial incentives: allowed up to a combined maximum of 75% of MSRP.
PHEV incentives: plug-in hybrids receive 50% of the full ZEV incentive for the vehicle’s weight class, up to $50,000; short-range Class 2B PHEVs (battery <15 kWh) receive 25% of the full ZEV incentive.
Class 8 fuel cell vehicles: eligible for up to $200,000 per vehicle under program rules.
Program funding is limited. Applications are processed subject to budget availability and program timelines.
Ineligible Applicants
The following recipients are not eligible:
Individuals (personal purchases are not supported under iMHZEV)
Organizations without an office registered in Canada
Entities unable to register the vehicle in Canada
Applicants attempting to claim incentives directly (only dealers/sellers submit to the program)
Organizations planning to acquire used vehicles or new vehicles not listed as eligible
Situations that commonly lead to ineligibility:
Off-road vehicles or vehicles not intended for public-road use
Transit buses or school buses (as program-excluded categories)
Class 2B or 3 MDPVs with an MSRP over $100,000
Class 2B or 3 vehicles that do not meet commercial criteria and also exceed the MDPV MSRP cap
Special Cases & Exceptions
Specific scenarios to keep in mind:
Demonstrator vehicles: eligible if odometer reads less than 10,000 km and all other criteria are satisfied.
Related businesses: organizations with common ownership (excluding separate publicly listed corporations) may be treated as a single entity for the annual cap.
Public-sector fleets: annual limits apply by level of government (municipal vs. provincial/territorial), not per department.
Indigenous organizations: eligible when other standard rules are met (registered in Canada, vehicle on eligible list, etc.).
PHEV treatment: incentives are reduced versus full ZEVs; verify class-based amounts and 25% rule for short-range Class 2B PHEVs.
iZEV vs. iMHZEV: the light-duty iZEV pause announced January 10, 2025 does not change iMHZEV eligibility; iMHZEV remains active to March 31, 2026, subject to funds.
Self-Assessment Checklist
Use this quick checklist to determine if your organization can apply to iMHZEV:
Are you an organization (not an individual) with an office registered in Canada?
Will the vehicle be available for order/purchase/lease in Canada and registered in your organization’s name in Canada?
Is the vehicle new (or a demo with fewer than 10,000 km) and listed on the iMHZEV eligible vehicles list, including the exact configuration?
Is the vehicle a medium- or heavy-duty on-road ZEV (battery-electric, plug-in hybrid, or hydrogen fuel cell) with GVWR over 8,500 lb?
If leasing, is the term at least 12 months, and do you understand shorter terms are prorated while 48 months receives the full incentive?
For Class 2B/3, will the vehicle either meet commercial criteria or, if considered an MDPV, have an MSRP of $100,000 or less?
Do you understand the annual limit: up to 10 incentives or $1,000,000 per calendar year (whichever comes first), with no carry-forward?
Are you prepared to work with a registered dealer/authorized seller who will apply the incentive at point of sale and submit to the program?
Do you plan to stack with provincial/territorial incentives while staying within the 75% MSRP cap?
If you answered “yes” to most or all of these questions, your organization is likely eligible to proceed.
Conclusion
iMHZEV is designed for Canadian organizations—businesses, non-profits, public-sector fleets, and Indigenous organizations—that purchase or lease new, eligible medium- and heavy-duty ZEVs for on-road use. The program requires Canadian registration, eligible vehicle listings, and compliance with class-based rules, including MDPV and commercial criteria for Classes 2B and 3. Annual limits, stackability with provincial incentives, and dealer-led applications shape how recipients access the federal incentive. With program availability through March 31, 2026, subject to funding, organizations should verify eligibility early and coordinate with authorized sellers to secure support efficiently.
