iMHZEV – Questions and answers

Question & Answer
1. Are demonstrator vehicles eligible?

For the purposes of the iMHZEV Program, eligible ZEVs that are demonstrators are considered new vehicles and are eligible for the incentive as long as the odometer reading is less than 10,000 km.

2. Are plug-in hybrids (PHEVs) or hydrogen fuel cell vehicles (FCEVs) eligible for the iMHZEV Program?

Yes, these vehicles are eligible for the Program.

3. Are off-road vehicles eligible under the iMHZEV Program?

No, off-road vehicles are not eligible under the iMHZEV program.

4. Are pick-up trucks eligible under the iMHZEV Program?

Yes, pick-up truck models (in Class 2B and higher) are eligible under the iMHZEV Program. Pick-up trucks in Class 2B and 3 that meet the program’s commercial vehicle criteria are eligible for incentives of up to $10,000 and $40,000, respectively. Pick-up truck models that are considered medium-duty passenger vehicles (MDPVs) (for example, that do not meet the commercial vehicle criteria) are eligible for an incentive of $5,000 and subject to a Manufacturer’s Suggested Retail Price (MSRP) cap of $100,000.

5. What criteria must be met for a vehicle to be considered a commercial vehicle under the iMHZEV Program?

Vehicles in Class 2B and 3 are considered commercial vehicles if the model meets one or more of the following criteria:

  1. Has a seating capacity of 9 passengers or more;
  2. Has a cargo area (for example, a pick-up truck box or bed) of at least 183 cm (72 in. or 6ft) in interior length; or
  3. Is a truck with container attachment capabilities (for example, chassis cab, half truck).
6. Are leased vehicles eligible for an incentive?

Yes, the incentive can be applied to vehicles leased for 12 months or more but will be adjusted for leases shorter than 48 months. For example, a 48-month lease is eligible for the full incentive, while a vehicle with a 24-month lease will be eligible for half the incentive.

More information on incentives for specific vehicles under standard lease terms

Vehicle class

Full incentive amount

48-month lease

36-month lease

24-month lease

12-month lease

8 (Coach, FCEV)

$200,000

$200,000

$150,000

$100,000

$50,000

8 (≥350 kWh)

$150,000

$150,000

$112,500

$75,000

$37,500

8 (<350 kWh)

$100,000

$100,000

$75,000

$50,000

$25,000

7

$100,000

$100,000

$75,000

$50,000

$25,000

6

$100,000

$100,000

$75,000

$50,000

$25,000

5

$75,000

$75,000

$56,250

$37,500

$18,750

4

$75,000

$75,000

$56,250

$37,500

$18,750

3* (Commercial Vehicle)

$40,000

$40,000

$30,000

$20,000

$10,000

2B* (Commercial Vehicle)

$10,000

$10,000

$7,500

$5,000

$2,500

3* (MDPV)

$5,000

$5,000

$3,750

$2,500

$1,250

2B* (MDPV)

$5,000

$5,000

$3,750

$2,500

$1,250

* Class 2B and 3 vehicles must meet the Program’s commercial vehicle criteria to be eligible for the above incentives. Class 2B and 3 vehicles that do not meet these criteria will be considered medium-duty passenger vehicles (MDPV) and are eligible for the above identified (MDPV) incentives subject to an MSRP cap of $100,000:

For lease terms not listed in the table, use the following formula to find the appropriate incentive level. This percentage can be applied to the incentive for an eligible zero-emission vehicle:

(full incentive amount of the eligible MHZEV ÷ 48) x (number of months of the lease)

7. Are pre-owned medium- and-heavy-duty zero-emission vehicles (MHZEVs) eligible?

No, only new MHZEVs are eligible. New vehicles are ones that have not been plated before, except demonstration vehicles. Demonstrator vehicles can be registered and plated to the dealership/authorized seller for demonstration purposes prior to being registered and plated to the eligible recipient organization.

8. Are public transit and school buses eligible for an iMHZEV incentive?
  • No. The iMHZEV Program excludes vehicles intended for public transit and school transportation due to coverage under other federal programming provided through Infrastructure Canada. Similar vehicle types, such as shuttle buses, may be eligible if purchased for other means, such as for use by private businesses. Please visit Infrastructure Canada for more information on the Zero Emission Transit Fund.
  • Vehicles of the transit/shuttle bus type will be eligible to receive incentives under the iMHZEV program so long as they are not intended for public transit use and no other federal funding is being sought for those vehicles. An attestation is being included in the mandatory forms to confirm that there is no additional federal funding being sought for the vehicle(s) in question.
9. Are there any fees associated with the iMHZEV Program?

There are no fees associated with the iMHZEV Program. Dealerships and authorized sellers can’t charge additional fees under the iMHZEV Program. If they charge fees, Transport Canada can remove the dealership/authorized seller from the Program.

All fees and costs, like freight and delivery charges, should be similar to the fees and costs for vehicles sold outside of the Program.

Number 10. Are MHZEVs purchased or leased outside of Canada eligible?

No. Only new vehicles purchased or leased in Canada from a licensed dealer or authorized seller are eligible. Licenced dealers/authorized sellers must have a Canadian office and must be a registered Canadian business in order to provide incentives.

Number 11. Does the iMHZEV Program have a minimum purchase or fleet requirement?

No. There is no minimum purchase or minimum fleet size requirement. An eligible recipient organization cannot receive more than 10 incentives (or $1,000,000) per calendar year.

Number 12. In the instance of a multi-stage manufactured vehicle, in some cases the final stage manufacturer is the seller, rather than the chassis dealer. Can either entity register with TC as the authorized seller?

Both can enroll with Transport Canada as authorized sellers, however only the entity that sells/leases the vehicle to the eligible purchaser/lessee can provide the incentive and be reimbursed by TC.

Number 13. Can additional MHZEVs be added to the list of eligible vehicles?

Yes. Automakers can apply to Transport Canada to have specific makes, models and trims added to the List of Eligible Vehicles. Transport Canada will then review the application to make sure the vehicle is eligible for the iMHZEV Program before adding it to the list. Please email IncentivesMHZEV-IncitatifsVMLZE@tc.gc.ca to obtain an application for new vehicles to be considered for eligibility.

Number 14. Can an individual receive an incentive from the iMHZEV Program?

No. Individuals are not eligible to receive an incentive from the iMHZEV program.

Number 15. Does the purchasing/leasing organization need to finance the purchase of an eligible MHZEV in order to receive the incentive?

No. Both cash purchases and financed purchases (as well as leases of at least 12 months) are eligible for the iMHZEV Program incentive.

Number 16. Does the iMHZEV Program have price caps?

Yes, medium-duty passenger vehicles (MDPVs) (i.e., vehicles under Classes 2B and 3 that do not meet the program’s commercial vehicle criteria) will be subject to an MSRP cap of $100,000. Vehicle models that exceed this cap will not be eligible for an incentive under the iMHZEV Program. The MSRP cap does not apply to vehicles included in Class 2B and 3 meeting the commercial criteria as well as vehicles included in classes 4 to 8.

Number 17. Do vehicle add-on accessories, options, packages or colours affect eligibility under the iMHZEV Program?

No, as long as the vehicle make, model, and trim are included on the iMHZEV Program’s List of Eligible Vehicles, then the purchase or lease of these vehicles qualifies for the incentive.

Number 18. Who is eligible to receive an iMHZEV incentive and is there a limit on how many vehicles I can purchase or lease under the iMHZEV program?
  • Businesses can apply for up to 10 incentives or a maximum of $1,000,000 per calendar year (whichever comes first). This limit is applied at an organization level, rather than by department or division;
  • Indigenous communities and not-for-profit organizations, including charities can participate in the IMHZEV Program as long as they are registered. There is an incentive limit of 10 or a maximum of $1,000,000 per calendar year (whichever comes first); and
  • Provincial, territorial and municipal governments with fleets can apply for up to 10 incentives or a maximum of $1,000,000 in any calendar year (whichever comes first). This limit is applied by level of government, rather than by organization. This means that each provincial, territorial or municipal fleet can use no more than 10 incentives or a maximum of $1,000,000 per calendar year (whichever comes first).
  • The 10 incentive (or $1,000,000) limit applies per calendar year. Unused incentives cannot be carried into future calendar years.
Number 19. How do I know the maximum eligible incentive amount for a specific vehicle?

By referring to Transport Canada's list of eligible vehicles, you will see the maximum eligible incentive amount per vehicle.

Number 20. How does it work with other provincial/territorial incentive programs?

The federal incentive will be applied to eligible MHZEVs in addition to any provincial/territorial incentive offered up to 75% of the Manufacturer’s Suggested Retail Price (MSRP) of the vehicle.

Number 21. How do I know what MHZEVs are eligible?

By referring to Transport Canada's list of eligible vehicles, you will see a list of all eligible MHZEVs and their respective eligibility dates (the date in which they became eligible for an incentive).

In order for a vehicle to be eligible for an iMHZEV incentive at the time of sale/lease, the entire vehicle description must appear on the list of eligible vehicles including the year, make, model and trim of the vehicle. Only vehicles purchased/leased and delivered on or after the vehicles respective eligibility date are eligible for the respective incentive amount at the time of sale/lease.

Number 22. I was charged fees to process my iMHZEV application. What should I do?

If a dealership/authorized seller wants to charge, or has charged fees for the iMHZEV Program, please email Transport Canada: IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca.

Number 23. If I buy or lease an eligible MHZEV on or after the respective eligibility date, how do I get my incentive payment?

Purchasing/leasing organizations should receive the incentive directly from the dealership/authorized seller at the point-of-sale, after taxes and fees are applied to the vehicle. This allows the organization to benefit immediately when buying or leasing an eligible MHZEV.

Purchasing/leasing organizations can’t apply for the incentive on their own. Only dealerships/authorized sellers can submit incentive requests for reimbursement for an incentive provided to purchasing/leasing organizations at the point-of-sale.

Number 24. iMHZEV Online Portal: I’m entering the consumer’s address in the system, but it’s not recognized or can’t be found. I’ve checked that the address is correct, what should I do?

In some cases, the purchasing/leasing organizations address may not be recognized by the system. In these cases, you can manually enter the address by checking off the box for “If ‘Address Complete’ is not working, enter the address manually.”

Number 25. iMHZEV Online Portal: I forgot my username or password for my iMHZEV Portal account, what do I do?

If you’re having problems and would like step-by-step instructions on how to address this, please email IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca.

Number 26. Troubleshooting: The dealership/authorized seller did not apply the full incentive allowed. What should I do?

If you didn’t receive the incentive on an eligible MHZEV purchased or leased on or after the date listed on the eligibility vehicle list, please contact the dealership/authorized seller to receive the remaining eligible amount.

The dealership/authorized seller should provide the incentive at the-point-of-sale up to the maximum eligible amount as listed on the list of eligible vehicles, or as calculated using the following formula for a lease of less than 48 months:

(full incentive amount of the eligible MHZEV ÷ 48) x (number of months of the lease)

Number 27. Troubleshooting: What if the purchasing/leasing organization didn’t receive the incentive at the point-of-sale?

If the purchasing/leasing organization didn’t receive the incentive on an eligible MHZEV purchased or leased on or after the date listed on the eligibility vehicle list, please contact the dealership/authorized seller so they can provide you the incentive.

The dealership/authorized seller should provide the incentive after taxes and fees have been applied to the purchase or lease. The purchasing/leasing organization will need to complete and sign the Organization Consent Form and the Incentive Received Form.

Only a dealership/authorized seller can submit incentive requests for reimbursement. Purchasing/leasing organizations cannot apply directly for reimbursement.

Number 28. What are the timelines for taking advantage of the iMHZEV Program?

The iMHZEV program launched on July 11th, Funding is given on a first-come, first-served basis for eligible vehicles purchased or leased as of the vehicle’s eligibility date listed on Transport Canada’s website. The program’s end date is March 31st, 2026; however, it may end sooner if the available iMHZEV funding is fully exhausted prior to this date.

The Incentives for Medium- and Heavy-duty Zero-Emission Vehicles (iMHZEV) Program was awarded $547.5M over four years (or until available funding is exhausted) starting July 11th, 2022.

Available in the Fall of 2022, please visit Incentives for Medium- and Heavy-duty Zero-Emission Vehicles (iMHZEV) Program Statistics to find the latest data on remaining available funds within the iMHZEV Program.

Number 29. What if a purchasing/leasing organization received an incentive towards the purchase or lease of a vehicle that is deemed a total loss or where a manufacturer buyback is applicable within the same calendar year of the original purchase/lease dates?

In instances of vehicle write-offs, manufacturer buybacks, and other cases where Transport Canada deems it reasonable, another incentive in the same calendar year upon preapproval may be considered. Please contact Transport Canada in these situations for more information and guidance on how to proceed by emailing IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca.

Number 30. What if I or my client purchased or leased an eligible vehicle before the iMHZEV Program was launched on July 11th, 2022?

Only eligible vehicles purchased/leased and delivered to the eligible recipient on or after the respective vehicle’s eligibility date (as displayed on the list of eligible vehicles) are eligible for a point of sale/lease incentive. Any vehicle purchased/leased and delivered to the eligible recipient before July 11th, 2022, are not eligible for an iMHZEV incentive.

If the vehicle was ordered prior to July 11th, 2022, but delivered after this date, the vehicle will be eligible for the incentive.

Number 31. Who can submit an incentive request for reimbursement?

Only dealerships and authorized sellers can submit incentive requests for reimbursement. Purchasing/leasing organizations should receive the incentive directly from the dealership/authorized seller at the point-of-sale, after taxes and fees are applied to the vehicle.

Purchasing/leasing organizations can’t apply for the incentive on their own.