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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: June 3, 2025
Canada
Incentives to purchase or lease medium- heavy-duty ZEVs

Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program 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
Grant Providers
  • Transport Canada
Status
Open

Overview of the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program program

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.

Eligible projects & activities

  • 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:

$ 200,000

Purchase of an electric refuse truck for eco-friendly waste collection

$ 600,000

Leasing three medium-duty zero-emission transit buses for city public transportation

$ 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 criteria of the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program program

  • 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 to the Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program program

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

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