The Government of Canada knows that the higher upfront purchase cost of medium- and heavy-duty zero-emission vehicles (MHZEVs) can make it difficult to adopt this clean technology. The Incentives for Medium- Heavy-duty Zero-Emission Vehicles (iMHZEV) Program is helping to make it more affordable.
Purchase and lease incentives
The iMHZEV Program offers point-of-sale incentives for Canadian organizations and businesses (subject to funding availability) who buy or lease an eligible MHZEV. Only Canadian businesses / organizations with an office registered in Canada are eligible under the iMHZEV Program. In addition, only the vehicles listed on our website are eligible for an incentive when they’re purchased or leased for at least 12 months, on or after the eligibility date.
Note that leases under 48 months will be prorated (adjusted) based on the duration of the contract. 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.
Find out which vehicles are eligible for an incentive, or a vehicle’s eligibility date
How to receive the incentive
The incentive will be applied at the point-of-sale by the dealership or other authorized sellers such as automakers and/or vehicle finishers/distributors once they have confirmed your eligibility. As part of the eligibility verification, you will need to complete the Organization Consent Form. Once your eligibility is confirmed, you will need to complete the Incentive Received Form and then, the incentive will appear directly on the bill of sale or lease agreement of the eligible MHZEVs. The dealership must apply taxes and fees to the purchase or lease before applying the incentive. You should not be required to make a deposit to receive the incentive, and the incentive should not be reimbursement in the form of a cheque at a later date.
The dealership must submit the required documentation to be reimbursed for an incentive provided to an eligible recipient organization at the point-of-sale. Recipient organizations cannot submit a request for reimbursement, only dealerships registered with the Program can.
The federal incentive for eligible MHZEVs will be applied in addition to any provincial or territorial incentive offered up to a maximum of 75% of the respective vehicles Manufacturer’s Suggested Retail Price (MSRP).
Incentive Limits
Eligible organizations can receive up to 10 incentives or a maximum of $1,000,000 per calendar year (whichever comes first).
More specifically:
- Organization and business limits are applied at an organization level, rather than by department or division. Organizations and businesses that share common ownership, other than common ownership as a result of being a publicly traded company, are considered as one single organization eligible for a combined total of 10 incentives or a maximum of $1,000,000 per calendar year (whichever comes first).
- Limits for provincial, territorial and municipal governments with fleets are 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)
Note, unused incentives cannot be carried into future calendar years.
The iMHZEV Program monitors the incentives limits closely. Canada reserves the right to seek reimbursement should a recipient be found to have received more than the eligible number of incentives from the iMHZEV Program in a calendar year.
Eligible vehicles
To be eligible under the iMHZEV Program, a vehicle must be a zero-emission vehicle (i.e., has the potential to produce no tailpipe emissions). The program considers battery-electric, plug-in hybrid electric and hydrogen fuel cell to be zero emission vehicles. To be considered a medium or heavy-duty vehicle, the vehicle must have a gross weight rating greater than 8,500 lbs. Additional eligibility criteria can be found on the Eligible vehicles web page.
Types of Incentives
The iMHZEV incentives are determined based on the characteristics of each eligible vehicle configuration by class. The incentive amounts for Commercial and Medium-Duty Passenger vehicles are as follows:
Incentive Levels by Class
| Vehicle Type | Gross Vehicle Weight Rating (lb) | Vehicle Examples | Maximum Incentive Amount |
|---|---|---|---|
| Class 7/8 Coach Bus, Class 8 Fuel Cell Electric Vehicles | 26,001+ (11,794+ kg) |
Coach bus, Fuel cell semi-truck | $200,000 |
| Class 8 (350 kWh and up) | 33,000+ (14,970+ kg) |
Dump, cement, heavy conventional, sleeper | $150,000 |
| Class 8 (under 350 kWh) | 33,000+ (14,970+ kg) |
Dump, cement, heavy conventional, sleeper | $100,000 |
| Class 7 | 26,001 – 33,000 (11,794 – 14,969) |
furniture, medium conventional | $100,000 |
| Class 6 | 19,501– 26,000 (8,846 – 11,793) |
Beverage, single-axle vans, rack | $100,000 |
| Class 5 | 16,001 – 19,500 (7,258 – 8,845 kg) |
Large walk-in, city delivery, bucket | $75,000 |
| Class 4 | 14,001 – 16,000 (6,351 – 7,257 kg) |
Large walk-in, conventional vans, city delivery | $75,000 |
| Class 3* | 10,001– 14,000 (4,537 – 6,350 kg) |
Walk-in, conventional vans, city delivery | $40,000 |
| Class 2B* | 8,501 – 10,000 (3,856 – 4,536 kg) |
Utility vans, full-size pick-ups, step vans | $10,000 |
* Class 2B and Class 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 (MDPVs) and are eligible for the following incentives if the MSRP of the vehicle is equal or less than $100,000:
| Vehicle Type | Gross Vehicles Weight Rating (lb) | Vehicle Examples | Maximum Incentive Amount |
|---|---|---|---|
| Class 3 | 10,001– 14,000 (4,537 – 6,350 kg) |
Class 2B and 3 vehicles that do not meet the commercial vehicle criteria (e.g., pickups, large SUVs) | $5,000 |
| Class 2B | 8,501 – 10,000 (3,856 – 4,536 kg) |
Of note, the iMHZEV Program will provide lower incentives for plug-in-hybrids at 50% of the full ZEV incentive per vehicle weight class, up to a maximum of $50,000. Class 2B short range plug-in hybrid vehicles (i.e., those with a battery capacity of less than 15 kWh) will be eligible for incentives at 25% of the full ZEV incentive amount. Additionally, Class 8 fuel cell electric vehicles will receive the maximum incentive amount of $200,000.
Contact Us
If you have any questions, please contact us at IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca or our toll-free number at 1-800-O-Canada for general inquiries.