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Zero Emission Transit Fund - Canada
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Zero Emission Transit Fund

Supports zero-emission bus fleet electrification
Last Update: April 10, 2026
Funding available
$ 350,000,000
Timeline
  • Open continuously
Location
Canada

Overview

Supports planning and capital projects that help electrify public transit and school bus fleets, including studies, zero emission bus purchases, and related charging or refuelling infrastructure. The program can provide up to $350 million per project, with funding of up to 80% for planning projects and up to 50% for capital projects.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Implement environmental initiatives
  • Reduce environmental footprint
  • Develop workforce skills
Eligible Funding
  • Maximum amount : 350,000,000 $
  • Up to 80% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • Transportation and warehousing
  • Educational services
  • Public administration
Location
  • Canada
Legal structures
  • Non-profit
  • Public or Parapublic institution
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Indigenous Peoples
Non-profit candidates
Sector of operation
  • Primary and Secondary Education
  • Environment
Target groups
  • Indigenous peoples
Revenue structures
  • All structures
Scope
  • All dimensions

Next steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Studies, modelling, and feasibility analysis for future zero emission bus deployment
  • Development of comprehensive fleet electrification plans
  • Procurement of zero emission public transit or school buses
  • Installation of charging or refuelling infrastructure and related ancillary infrastructure
  • Retrofits of conventional fuel buses to zero emission buses

Documents Needed

  • Expression of Interest form
  • Project location map in .KML format
  • Supporting studies, analyses, or planning documents
  • GHG + Plus Guidance Modules for capital applications
  • Council resolution or board support letter, if applicable

Eligibility

Who is eligible?

  • Municipal, local, and regional governments
  • Provinces and territories
  • Public sector bodies such as transit agencies and school boards
  • Private-sector school bus operators and private accessible transit providers in partnership with eligible public recipients
  • Indigenous governing bodies, Indigenous development corporations, and certain incorporated not-for-profit organizations

Who is not eligible

  • Applicants that are not legal entities capable of signing binding agreements
  • Private-sector school bus operators without a required public-sector partnership
  • Private accessible transit operators without a required public-sector partnership
  • Not-for-profit organizations applying without a required partnership with an eligible recipient

Eligible expenses

  • Procurement of zero emission buses
  • Charging or refuelling equipment and related supporting infrastructure
  • Construction or improvements to new facilities
  • Warranties, external training, and project monitors or independent certifiers
  • Indigenous consultation costs, program-specific assessment costs, and certain incremental employee costs directly tied to project implementation

Ineligible Costs and Activities

  • Costs incurred before project funding approval, except specified pre-approval costs
  • Land and building purchases, real estate fees, and cost overruns
  • Ongoing operations, maintenance, electricity, and fuel costs for capital assets
  • Purchase or maintenance of diesel buses, hybrid buses, and fossil-fuel-reliant compressed natural gas rolling stock or infrastructure
  • Financing, interest, taxes eligible for rebate, leasing of land or buildings, and legal fees not explicitly allowed

Eligible geographic areas

  • Canada
  • Quebec is subject to discussions with the Government of Canada regarding program implementation under Quebec's legislative framework.

Processing and Agreement

  • Submitted applications are reviewed by Housing, Infrastructure and Communities Canada against eligibility and merit criteria.
  • Applications may also be reviewed separately by the Canada Infrastructure Bank to assess financing potential.
  • The department may request additional information or clarification during assessment.
  • Funding decisions are communicated to applicants in writing.
  • Approved recipients must sign a contribution agreement before reimbursement of eligible costs.

Additional information

  • The application period for both planning and capital streams is closed.
  • Group applications were allowed, with one eligible recipient acting as lead applicant.
  • Projects could be reviewed by both Housing, Infrastructure and Communities Canada and the Canada Infrastructure Bank under separate agreements.
  • Recipients may have to repay full or partial contributions if funded rolling stock or supporting infrastructure is sold within 10 years.

Contacts

Frequently Asked Questions about the Zero Emission Transit Fund Program

Here are answers to the most common questions about the Zero Emission Transit Fund. 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 Zero Emission Transit Fund?

Supports planning and capital projects that help electrify public transit and school bus fleets, including studies, zero emission bus purchases, and related charging or refuelling infrastructure. The program can provide up to $350 million per project, with funding of up to 80% for planning projects and up to 50% for capital projects.

How much funding can be received?

Zero Emission Transit Fund Funds up to 80% of admissible expenses, capped at $350,000,000 per project.

Who is eligible for the Zero Emission Transit Fund program?

To be eligible for the Zero Emission Transit Fund program, you must: Legal entity applicant Eligible recipient category Eligible planning or capital project

What expenses are eligible under Zero Emission Transit Fund?

Studies, modelling, and feasibility analysis for future zero emission bus deployment Development of comprehensive fleet electrification plans Procurement of zero emission public transit or school buses Installation of charging or refuelling infrastructure and related ancillary infrastructure Retrofits of conventional fuel buses to zero emission buses

Who can I contact for more information about the Zero Emission Transit Fund?

You can contact Housing, Infrastructure and Communities Canada (HICC) by email at zetf-ftcze@infc.gc.ca or by phone at 613-948-1148.

Where is the Zero Emission Transit Fund available?

The Zero Emission Transit Fund program is available across Canada.

Is the Zero Emission Transit Fund a grant, loan, or tax credit?

Zero Emission Transit Fund is a Grant and Funding