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Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program - Canada

Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program

Last Update: July 22, 2025
Canada
Incentives to purchase or lease medium- heavy-duty ZEVs

At a glance

Eligible Funding
  • Max. $1,000,000
  • Up to 75% of project cost
Timeline
  • Open Date : May 9, 2024
Financing Type
Grant and Funding
Eligible Industries
  • Retail trade
  • Transportation and warehousing
Funds Providers
Unspecified
Program status
Open

Overview

The Incentives for Medium- and Heavy-duty Zero-Emission Vehicles (iMHZEV) Program provides Canadian organizations and businesses with up to $200,000 per eligible vehicle to support the purchase or lease of new medium- and heavy-duty zero-emission vehicles. This government funding aims to reduce the financial barrier of adopting clean vehicle technologies and supports the acquisition and leasing of battery-electric, plug-in hybrid, and hydrogen fuel cell vehicles.

Financing terms and conditions

  • Maximum federal incentive covers up to 75% of the vehicle’s Manufacturer’s Suggested Retail Price (MSRP).
  • Eligible organizations can receive up to 10 incentives or a total maximum of $1,000,000 per calendar year, whichever comes first.
  • Incentive amounts per eligible vehicle vary by class, ranging from $10,000 to $200,000.
  • Plug-in hybrid vehicles receive a reduced incentive—up to 50% of the full ZEV incentive, capped at $50,000 per vehicle.
  • Leases shorter than 48 months receive prorated incentives based on lease duration.

Activities funded

  • Purchase of new medium- and heavy-duty zero-emission vehicles for business or organizational use.
  • Leasing of eligible medium- and heavy-duty zero-emission vehicles for at least 12 months.
Examples of admissible projects:
$ 600,000
Leasing three medium-duty zero-emission transit buses for city public transportation
$ 200,000
Purchase of an electric refuse truck for eco-friendly waste collection
$ 200,000
Leasing zero-emission school buses for eco-friendly student transportation
$ 200,000
Purchase of two heavy-duty zero-emission delivery trucks for urban deliveries
$ 200,000
Leasing electric heavy-duty trucks for local construction material transport
$ 200,000
Purchasing zero-emission tractor units for regional agricultural transport

Eligibility

  • The applicant must be a Canadian business or organization with an office registered in Canada.
  • The applicant must purchase or lease an eligible new medium- or heavy-duty zero-emission vehicle for at least 12 months.
  • The vehicle must be intended for use on public streets, roads, and highways or other paved surfaces in Canada.
  • The vehicle must be registered in the name of the eligible recipient organization in Canada.

Who is eligible?

  • Canadian businesses with an office registered in Canada
  • Canadian organizations with an office registered in Canada
  • Provincial, territorial, and municipal governments with vehicle fleets

Who is not eligible

  • Companies and organizations that do not have an office registered in Canada.
  • Businesses attempting to submit reimbursement requests directly, as only dealerships registered with the program can do so.
  • Companies purchasing vehicles not listed as eligible or not meeting Transport Canada's vehicle eligibility criteria (e.g., certain transit buses, school buses, recreational vehicles, or off-road vehicles may be excluded).

Eligible expenses

  • Purchase of new eligible medium- and heavy-duty zero-emission vehicles (including battery-electric, plug-in hybrid electric, and hydrogen fuel cell vehicles) listed on the program’s website.
  • Lease of new eligible medium- and heavy-duty zero-emission vehicles for a minimum term of 12 months.

Eligible geographic areas

  • Businesses and organizations with an office registered in Canada.

How to apply

1

Check Vehicle Eligibility

  • Consult the Transport Canada website to verify that the vehicle you are interested in is listed as eligible under the iMHZEV Program.
  • Ensure the vehicle meets the eligibility criteria such as being a zero-emission vehicle and new with less than 10,000 km on the odometer.
2

Purchase or Lease from Authorized Dealer

  • Contact an authorized dealership or automaker that participates in the iMHZEV Program.
  • Confirm with the dealer that they will handle the incentive application process at the point of sale.
3

Complete Organization Consent Form

  • Fill out the Organization Consent Form to verify your organization’s eligibility.
  • Submit the form to the dealership or authorized seller.
4

Finalize Purchase or Lease

  • Proceed with the purchase or lease agreement.
  • Ensure taxes and fees are applied before the incentive is deducted from the total.
  • Receive the incentive as a reduction directly on the bill of sale or lease agreement.
5

Dealer Reimbursement Process

  • The dealership will handle the submission of required documentation to Transport Canada for reimbursement.
  • Keep a copy of the bill of sale or lease agreement showing the incentive applied, for your records.

Additional information

  • Only vehicles listed as eligible on the program's website qualify for the incentive.
  • Leases less than 48 months are eligible for a prorated incentive based on lease duration.
  • Unused incentives cannot be carried forward into future calendar years.
  • Demonstrator vehicles with less than 10,000 km on the odometer are eligible if all criteria are met.

Documents and links

Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program

Apply to this program

Frequently Asked Questions about the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program Program

Here are answers to the most common questions about the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program?

How much funding can be received?

What is the deadline to apply?

Is the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program a grant, loan, or tax credit?

Who are the financial supporters of the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program?

Who is eligible for the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program program?

Who can I contact for more information about the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program?

Where is the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program available?

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