Incentives for medium and heavy-duty zero-emission vehicles Program
Canada
Incentives to purchase or lease medium- heavy-duty ZEVs
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 05, 2023
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Retail trade
- Transportation and warehousing
grant_single|grantors
- Transport Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Access an incentive of up to $200,000 to purchase or lease a new medium- and heavy-duty zero-emission vehicle approved or listed on the program's list of eligible vehicles.
grant_single_labels|projects
This grant is available to companies with an office registered in Canada, reflecting the focus of the funding body on encouraging zero-emission vehicle adoption across the country.
- Organizations with an office registered anywhere within Canada.
grant_single|admissibleProjectsExample
$200,000
Toronto
Purchase of an electric refuse truck for eco-friendly waste collection
$600,000
Vancouver
Leasing three medium-duty zero-emission transit buses for city public transportation
$200,000
Ottawa
Leasing zero-emission school buses for eco-friendly student transportation
$200,000
Montreal
Purchase of two heavy-duty zero-emission delivery trucks for urban deliveries
$200,000
Calgary
Leasing electric heavy-duty trucks for local construction material transport
$200,000
Edmonton
Purchasing zero-emission tractor units for regional agricultural transport
grant_single_labels|admissibility
Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.
- The applicant must be a Canadian business or organization with an office registered in Canada.
- The applicant must be purchasing or leasing a new, eligible medium- or heavy-duty zero-emission vehicle (MHZEV).
- The organization is limited to receiving up to 10 incentives or a maximum of $1,000,000 per calendar year.
- Incentive limits are applied at an organization level for businesses, and at a level of government for provincial, territorial, and municipal fleets.
grant_eligibility_criteria|who_can_apply
The iMHZEV Program is available to Canadian organizations and businesses with an office registered in Canada that are looking to purchase or lease eligible medium- and heavy-duty zero-emission vehicles (MHZEVs). Eligible vehicles must meet certain criteria, including being zero-emission vehicles like battery-electric, plug-in hybrid electric, or hydrogen fuel cell vehicles, and must be intended for public road use. Only vehicles listed on the program's official website can receive incentives, and they must not have been registered before. Demonstrators with less than 10,000 km are considered eligible. Provincial, territorial, and municipal governments, including their fleets, can also apply under specific limits.
grant_eligibility_criteria|who_cannot_apply
This grant does not explicitly exclude any specific companies or industries based on their status or activities. However, it is primarily targeted towards those buying or leasing eligible zero-emission vehicles.
grant_eligibility_criteria|eligible_expenses
The iMHZEV Program is designed to support Canadian organizations and businesses in reducing their carbon footprint by purchasing or leasing medium- and heavy-duty zero-emission vehicles. These activities contribute to the broader goal of promoting clean technology for transportation in Canada.
- Purchase of eligible medium- and heavy-duty zero-emission vehicles (MHZEVs).
- Leasing of eligible MHZEVs with a lease term of at least 12 months.
- Incorporation of MHZEVs into the fleet of municipal, provincial, or territorial government organizations for public road transportation.
- Adoption of battery-electric, plug-in hybrid electric, and hydrogen fuel cell vehicles qualified under this program.
grant_eligibility_criteria|zone
The grant focuses on lowering the cost of purchasing or leasing eligible medium- and heavy-duty zero-emission vehicles.
- Purchase or lease of eligible medium- and heavy-duty zero-emission vehicles (MHZEVs) listed on Transport Canada's website.
grant_single_labels|criteria
The Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program does have evaluation and selection criteria. Applicants are assessed based on the eligibility of the vehicles being purchased/leased and the timely submission of required documentation. The evaluation and selection criteria include:
- Eligibility of the purchased/leased medium- and heavy-duty zero-emission vehicles
- Timely submission of required documentation
grant_single_labels|register
Here are the steps to apply for and receive the iMHZEV Program incentives:
- Step 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.
- Step 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.
- Step 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.
- Step 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.
- Step 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.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The dealership or authorized seller must confirm the buyer's eligibility and apply the incentive at the point of sale, ensuring that taxes and fees are calculated before the incentive is applied.
- The federal incentive can be combined with provincial or territorial incentives, adhering to a maximum cap of 75% of the vehicle's Manufacturer’s Suggested Retail Price (MSRP).
- Businesses can receive up to 10 incentives or a total of $1,000,000 per calendar year, whichever comes first; unused incentives cannot be carried forward.
- Federal incentives are available in addition to other provincial or territorial incentives, but collectively they must not exceed the vehicle's funding limit of 75% of the MSRP.
- Incentives are prorated for lease agreements shorter than 48 months, with full incentives provided for 48-month leases.
- Demonstrator vehicles can qualify for incentives, provided they have not been previously registered and have fewer than 10,000 km on the odometer.
- Fuel cell electric vehicles and certain high-capacity vehicle classes receive higher incentives, up to $200,000.
- Plug-in hybrid vehicles receive incentives at a reduced rate, based on battery capacity and vehicle class.
Apply to this program
Support for Canadian Organizations Transitioning to Zero-Emission Vehicles
The Incentives for Medium- Heavy-duty Zero-Emission Vehicles (iMHZEV) Program by Transport Canada aims to ease the financial burden of adopting zero-emission technology for medium- and heavy-duty vehicles. This program offers point-of-sale incentives to eligible Canadian businesses and organizations purchasing or leasing qualifying zero-emission vehicles (ZEVs).
Understanding the Mechanics and Benefits of the iMHZEV Program
The iMHZEV Program is a strategic initiative by the Canadian government to promote environmental sustainability and reduce greenhouse gas emissions by making zero-emission vehicles more accessible for businesses. Acknowledging the higher upfront costs associated with these modern vehicles, the program provides financial incentives that help bridge the price gap, thereby encouraging adoption. The incentives are applied directly at the point-of-sale, simplifying the process for purchasing or leasing organizations by reducing the initial cost outlay right at the dealership.
Eligibility for these incentives requires that businesses be registered in Canada, and the vehicles must feature on the official list of qualified models maintained by Transport Canada. The program covers a wide range of ZEVs, including battery-electric, plug-in hybrids, and hydrogen fuel cell vehicles with gross weight ratings over 8,500 lbs. These vehicles must be new, comply with Canadian safety standards, and be intended for road use, highlighting the program’s focus on reducing tailpipe emissions and achieving substantive environmental benefits.
Addressing different business needs, the incentives are proportionate to the vehicle's class and functionality, supporting a variety of commercial applications. For instance, heavier vehicles like Class 8 trucks may receive up to $200,000. This categorical approach ensures that businesses can maximize their cost savings based on the specific vehicle configuration and class, which is especially beneficial for sectors reliant on heavy-duty transport equipment, such as logistics and freight, that are traditionally high in carbon output.
The program's design includes financial limits to maintain fairness and broad access. Eligible organizations can secure incentives for up to ten vehicles or a total of $1,000,000 annually. This cap is intended to diversify access and prevent a few entities from monopolizing the benefits, enabling more organizations across Canada to transition their fleets to zero-emission vehicles.
Furthermore, the program integrates with existing provincial and territorial incentives to maximize the financial support available, potentially allowing businesses to cover up to 75% of a vehicle's Manufacturer's Suggested Retail Price (MSRP). This multiplication of benefits can be highly impactful, especially for small and medium-sized enterprises that may struggle with higher initial investments in green technology.
For those considering leasing instead of purchasing, the structure is flexible: while 48-month leases can avail the full incentives, shorter durations like 24-months receive prorated amounts, ensuring fairness while providing options that can fit larger strategic fleet planning or evolving logistic needs.
The successful implementation of the iMHZEV Program not only extends beyond immediate financial savings but also supports Canada's broader environmental goals, driving the transition towards a more sustainable transport sector. By lowering the financial barrier to adopting ZEVs, the program promises to enhance the uptake of cleaner vehicle technology, diminish reliance on fossil fuels, and support national targets for emission reduction.
