Questions and answers

Below are the most frequently asked questions about the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program. You can search for keywords in the “Filter items” search bar.

Question & Answer
1. Are demonstrator vehicles eligible?

For the purposes of the iMHZEV Program, eligible zero emission demonstrator vehicles 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 or hydrogen fuel cell vehicles eligible?

Yes, these vehicles are eligible under the iMHZEV Program.

3. Are off-road vehicles eligible?

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

4. Are pick-up trucks eligible?

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 can be eligible for incentives of up to $10,000 and $40,000 respectively.

Pick-up truck models that are considered medium-duty passenger vehicles (MDPVs) (vehicles that do not meet the commercial vehicle criteria) are eligible for an incentive of up to $5,000 and are 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?

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, however the incentive amount will be prorated (adjusted) for leases under 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.

Please see the eligible vehicles page for a full list of incentive amounts by vehicle and lease term.

Table 1: Incentives by vehicle class

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 and are 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.

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

7. Are used 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 for 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?

No. The iMHZEV Program excludes vehicles intended for public transit and school transportation due to coverage under other federal programs 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 are eligible to receive incentives under the iMHZEV program if they are not intended for public transit use and no other federal funding is being sought for those vehicles.

9. Are there any fees associated with the iMHZEV Program?

There are no fees associated with the iMHZEV Program. Dealerships and authorized sellers cannot charge additional fees under the iMHZEV Program. If they charge fees, Transport Canada can remove them 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.

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

Number 10. Are vehicles 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.

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

No. There is no minimum purchase or minimum fleet size requirement for the iMHZEV Program.

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 Transport Canada as the authorized seller?

Both a manufacturer and a chassis dealer 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 Transport Canada.

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

Yes, a utomakers can apply to Transport Canada to have specific makes, models and configurations added to the List of Eligible Vehicles.   Transport Canada will review the application to make sure the vehicle is eligible under the iMHZEV Program before adding it to the list.

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

No. Individuals are not eligible to receive an incentive under the iMHZEV Program.

Number 15. Do I need to finance the purchase of an eligible vehicle 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 (i.e., vehicles under Classes 2B and 3 that do not meet the program’s commercial vehicle criteria) are subject to a Manufacturer suggested retail price (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. 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?

Eligible organizations are listed below and can receive up to 10 incentives or a maximum of $1,000,000 per calendar year (whichever comes first). More specifically:

  • Business limits are applied at an organization level, rather than by department or division;
  • Indigenous communities and not-for-profit organizations, including charities can participate in the i MHZEV Program as long as they are registered; and
  • Limits for p rovincial, 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).

Unused incentives cannot be carried into future calendar years.

Number 18. How do I know the maximum eligible incentive amount for a specific vehicle?

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

Number 19. How does it work with other provincial/territorial incentive programs?

The federal incentive can be combined with any provincial/territorial incentive offered up to 75% of the Manufacturer’s Suggested Retail Price of the vehicle.

Number 20. How do I know which vehicles 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 , the entire vehicle description must appear on the list of eligible vehicles including the year, make, model and configuration of the vehicle. Only vehicles purchased/leased and delivered on or after the vehicles respective eligibility date are eligible for the incentive.

Number 21. I was charged fees to process the iMHZEV incentive. 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 22. If I buy or lease an eligible vehicle on or after the respective eligibility date, how do I get the incentive?

The dealership/authorized seller must submit and obtain an eligibility assessment on the recipient organization’s behalf before the delivery of the vehicle and providing an incentive. You will need to sign an Organization Consent Form for this step. Once the eligibility is confirmed (valid for 90 days), the incentive will be applied directly on the sale/lease agreement at the point-of-sale, after taxes and fees are applied to the vehicle. This allows organizations to benefit immediately from the incentive when buying or leasing an eligible vehicle.

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

Number 23. iMHZEV Online Portal: I forgot my username or password for my iMHZEV Portal account, what do I do?

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

Number 24. The dealership/authorized seller did not apply the full incentive allowed. What should I do?

If you didn’t receive the full incentive on an eligible vehicle purchased or leased , please contact the dealership/authorized seller to receive the remaining eligible amount. Please email IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca if you require additional clarification.

The dealership/authorized seller must 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 25. 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 vehicle purchased or leased on or after the date listed on the eligibility vehicle list, they must contact the dealership/authorized seller so the incentive can be provided.

The dealership/authorized seller must provide the incentive after taxes and fees have been applied to the purchase or lease.  If the purchase or lease agreement has already been signed, they may provide the incentive via cheque or a similar mechanism. 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 26. What are the timelines for taking advantage of the iMHZEV Program?

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 until March 31st, 2026. However, the Program may end sooner if the available funding is fully exhausted prior to this date.

Number 27. 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 date?

In instances of vehicle write-offs, manufacturer buybacks, and other cases where Transport Canada deems it reasonable, another incentive in the same calendar year 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 28. Who can submit an incentive request for reimbursement?

Only dealerships and authorized sellers can submit incentive requests for reimbursement. Purchasing/leasing organizations must 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 cannot apply for the incentive on their own.

Number 29. How can I contact the iMHZEV Program?

If you have any questions for the iMHZEV Program, please contact us by email at IMHZEVProgram-ProgrammeIVMLZE@tc.gc.ca or our toll-free number at 1-800-O-Canada for general inquiries.