Key Takeaways:
- The iMHZEV Program is a federal incentive that offers up to $200,000 for the purchase or lease of a new medium- or heavy-duty zero-emission vehicle (ZEV), such as a truck, cargo van, shuttle, or other commercial vehicle.
- The program aims to encourage the adoption of ZEVs by Canadian businesses and non-profit organizations and to reduce greenhouse gas emissions from the transportation sector.
- The program is open for applications from July 11, 2022 to March 31, 2026, or until the funding of $550 million is exhausted, whichever comes first.
- The eligible vehicles include battery-electric, plug-in hybrid electric, and hydrogen fuel cell vehicles that have a gross weight rating greater than 8,500 lbs and meet Canada’s Motor Vehicle Safety Standards.
- The incentive amount varies depending on the vehicle class, fuel type, battery size, and lease term. The incentive is applied at the point of sale by the dealer or authorized seller.
- The program is administered by Transport Canada, which maintains a list of eligible vehicles and a list of participating dealers and sellers on its website.
If you are looking for a way to save money and reduce your environmental impact when buying or leasing a new medium- or heavy-duty vehicle for your business or organization, you may want to consider the federal iMHZEV Program. This program offers a generous incentive for the purchase or lease of a new zero-emission vehicle (ZEV), such as a truck, cargo van, shuttle, or other commercial vehicle. In this article, we will explain what the iMHZEV Program is, how it works, which vehicles are eligible, and how to apply for it.
What is the iMHZEV Program?
The iMHZEV Program stands for Incentives for Medium- and Heavy-duty Zero-Emission Vehicles. It is a federal program that was launched in July 2022 to encourage the adoption of ZEVs by Canadian businesses and non-profit organizations, and to reduce greenhouse gas emissions from the transportation sector. The program is part of Canada’s commitment to achieve net-zero emissions by 2050 and to support the transition to a clean energy economy.
The iMHZEV Program offers point-of-sale incentives for eligible ZEVs that are purchased or leased for at least 12 months, on or after the eligibility date. The incentive amount varies depending on the vehicle class, fuel type, battery size, and lease term. The maximum incentive amount is $200,000 per vehicle, which can cover up to 50% of the incremental cost of a ZEV compared to a conventional vehicle. The incentive is applied at the point of sale by the dealer or authorized seller, reducing the upfront cost for the buyer or lessee.
The program has a total funding of $550 million, which is expected to support the deployment of about 3,000 medium- and heavy-duty ZEVs across Canada. The program is open for applications from July 11, 2022 to March 31, 2026, or until the funding is exhausted, whichever comes first.
IMPORTANT LINKS
- How to Trade in Your Old Gas-Powered Vehicle for an Electric Vehicle with the BC Scrap-It Program
- How to Get a Tax Write-Off for Your Business with the Federal Tax Incentive for Electric Vehicles
- How to Save Money with the Federal iZEV Program for Electric Vehicles
- How to Find the Best Electric Vehicle Charging or Hydrogen Refuelling Station Near You
Which vehicles are eligible for the iMHZEV Program?
To be eligible for the iMHZEV Program, a vehicle must:
- be a medium or heavy-duty vehicle (i.e., have a gross weight rating greater than 8,500 lbs);
- be a zero-emission vehicle, meaning that it is powered by battery-electric, plug-in hybrid electric, or hydrogen fuel cell technology;
- meet all of Canada’s Motor Vehicle Safety Standards, where applicable;
- be available for order/purchase/lease in Canada;
- be on the list of eligible vehicles maintained by Transport Canada.
Transport Canada updates the list of eligible vehicles regularly, based on the information provided by the auto manufacturers. You can find the list on the Transport Canada website, where you can also sort and filter the vehicles by model year, make, model, trim, vehicle class, fuel type, battery size, and incentive amount. You can also search by keywords using the ‘Filter items’ option.
Some examples of eligible vehicles under the iMHZEV Program are:
- ARBOC Equess CHARGE 35′ Shuttle (BEV)
- Autocar E-ACTT Terminal Truck (BEV)
- BYD C10M Coach (BEV)
- Chevrolet Blazer RS (BEV)
- Ford E-Transit Cargo Van (BEV)
- Freightliner eCascadia Tractor (BEV)
- Hino 195h Cab-Over (PHEV)
- Hyundai XCIENT Fuel Cell Truck (FCEV)
- Lion Electric Lion8 Tractor (BEV)
- Mercedes-Benz eSprinter Cargo Van (BEV)
- Tesla Semi Tractor (BEV)
- Volvo VNR Electric Tractor (BEV)
How to apply for the iMHZEV Program?
The application process for the iMHZEV Program is simple and straightforward. You do not need to fill out any forms or submit any documents to Transport Canada. All you need to do is:
- Find an eligible vehicle that meets your needs and budget. You can use the list of eligible vehicles on the Transport Canada website to help you with your search. You can also contact the auto manufacturer or your local dealership/authorized seller for more information about a particular make or model.
- Find a participating dealer or authorized seller that offers the iMHZEV Program incentive. You can use the list of participating dealers and sellers on the Transport Canada website² to help you with your search. You can also contact the dealer or seller directly to confirm their participation and availability of the vehicle.
- Negotiate the price and terms of the purchase or lease agreement with the dealer or seller. The dealer or seller will apply the iMHZEV Program incentive at the point of sale, reducing the amount you have to pay. The dealer or seller will also provide you with a proof of purchase or lease that shows the incentive amount and the vehicle details.
- Enjoy your new ZEV and the benefits of lower fuel and maintenance costs, reduced emissions, and improved performance.
How much can you save with the iMHZEV Program?
The amount of money you can save with the iMHZEV Program depends on several factors, such as the vehicle class, fuel type, battery size, and lease term. The table below shows the maximum incentive amounts for different vehicle classes and fuel types under standard lease terms. For example, if you buy or lease a new Class 8 coach that is powered by battery-electric technology and has a battery size of 446 kWh, you can get an incentive of up to $200,000. If you lease the same vehicle for 24 months, you can get an incentive of up to $100,000.
| Vehicle class | Fuel type | Battery size | Full incentive amount | 48-month lease | 36-month lease | 24-month lease | 12-month lease |
|---|---|---|---|---|---|---|---|
| 8 (Coach, FCEV) | BEV, FCEV | N/A | $200,000 | $200,000 | $150,000 | $100,000 | $50,000 |
| 8 (≥350 kWh) | BEV | ≥350 kWh | $150,000 | $150,000 | $112,500 | $75,000 | $37,500 |
| 8 (<350 kWh) | BEV | <350 kWh | $100,000 | $100,000 | $75,000 | $50,000 | $25,000 |
| 7 | BEV, PHEV, FCEV | N/A | $100,000 | $100,000 | $75,000 | $50,000 | $25,000 |
| 6 | BEV, PHEV, FCEV | N/A | $100,000 | $100,000 | $75,000 | $50,000 | $25,000 |
| 5 | BEV, PHEV, FCEV | N/A | $75,000 | $75,000 | $56,250 | $37,500 | $18,750 |
| 4 | BEV, PHEV, FCEV | N/A | $75,000 | $75,000 | $56,250 | $37,500 | $18,750 |
| 3* (Commercial Vehicle) | BEV, PHEV, FCEV | N/A | $40,000 | $40,000 | $30,000 | $20,000 | $10,000 |
| 2B* (Commercial Vehicle) | BEV, PHEV, FCEV | N/A | $10,000 | $10,000 | $7,500 | $5,000 | $2,500 |
| 3* (MDPV) | BEV, PHEV, FCEV | N/A | $5,000 | $5,000 | $3,750 | $2,500 | $1,250 |
| 2B* (MDPV) | BEV, PHEV, FCEV | N/A | $5,000 | $5,000 | $3,750 | $2,500 | $1,250 |
What are the benefits of buying or leasing a ZEV with the iMHZEV Program?
By buying or leasing a ZEV with the iMHZEV Program, you can enjoy several benefits, such as:
- Saving money on the upfront cost of a new ZEV, thanks to the generous incentive that can cover up to 50% of the incremental cost.
- Saving money on the operating cost of a ZEV, as ZEVs have lower fuel and maintenance costs than conventional vehicles. According to Natural Resources Canada, the average annual fuel cost for a ZEV is $488, compared to $2,333 for a gasoline vehicle³. ZEVs also have fewer moving parts and require less frequent oil changes, brake replacements, and tune-ups.
- Reducing your environmental impact by driving a ZEV, as ZEVs produce zero tailpipe emissions and can help lower greenhouse gas emissions from the transportation sector. According to Environment and Climate Change Canada, the transportation sector accounts for 25% of Canada’s total greenhouse gas emissions and medium- and heavy-duty vehicles account for 40% of that share. By switching to a ZEV, you can help Canada achieve its climate goals and improve air quality.
- Improving your performance and productivity by driving a ZEV, as ZEVs offer better torque, acceleration, and handling than conventional vehicles. ZEVs also have lower noise and vibration levels, which can enhance driver comfort and safety.
Conclusion
The iMHZEV Program is a great opportunity for Canadian businesses and non-profit organizations to buy or lease a new medium- or heavy-duty ZEV, such as a truck, cargo van, shuttle, or other commercial vehicle. The program offers point-of-sale incentives of up to $200,000 per vehicle, which can significantly lower the upfront cost and make ZEVs more affordable and accessible. The program also helps buyers and lessees save money on operating costs, reduce their environmental impact, and improve their performance and productivity. The program is open for applications until March 31, 2026, or until the funding is exhausted, whichever comes first. If you are interested in buying or leasing a ZEV with the iMHZEV Program, you can visit the Transport Canada website for more information, or contact your local dealer or authorized seller to find out about the availability and eligibility of the vehicle you want.
Source: (1) iMHZEV – Eligible vehicles – Transport Canada. https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles/medium-heavy-duty-zero-emission-vehicles/imhzev-eligible-vehicles. (2) iMHZEV – Questions and answers – Transport Canada. https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles/medium-heavy-duty-zero-emission-vehicles/imhzev-questions-answers. (3) Combining rebates for medium- and heavy-duty EVs. https://www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/transportation-energies/clean-transportation-policies-programs/clean-energy-vehicle-program/combining-commercial-rebates. (4) Canada introduces subsidies for medium and heavy EVs. https://www.electrive.com/2022/07/12/canada-introduces-subsidies-for-medium-and-heavy-evs/. (5) Incentives for medium and heavy-duty zero-emission vehicles. https://tc.canada.ca/en/road-transportation/innovative-technologies/zero-emission-vehicles/medium-heavy-duty-zero-emission-vehicles/incentives-medium-heavy-duty-zero-emission-vehicles.