How much funding can be received?

Funds up to 75% of admissible expenses, capped at $1000000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

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

Q: What are Incentives for medium and heavy-duty zero-emission vehicles (iMHZEV) Program's eligibility criterias?

The business or organization must have an office registered in Canada. The eligible vehicles must be purchased or leased for a minimum of 12 months. The vehicles must be on Transport Canada's list of eligible medium and heavy-duty zero-emission vehicles.

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

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.

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.

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.

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.

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.