As outlined in Budget 2022, the Government of Canada is introducing a new $547.5 million Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program. Starting July 11, the four-year iMHZEV Program provides purchase incentives worth approximately 50% of the cost difference between an electric vehicle and a traditional diesel vehicle.
Specifically, these incentives are worth up to $200,000 per vehicle, and are applicable to purchase or lease commercial, medium- and heavy-duty zero-emission vehicles (see eligible vehicles here).
Funding can also be combined with provincial funding. For example, motor coach buses can get funding of up to $300,000 per vehicle (e.g., $200K from the iMHZEV Program and $100K from BC’s Specialty-Use Vehicle Incentive [SUVI] Program) and class 8 tractors can get funding of up to $250,000 ($150K from the iMHZEV Program and $100K from BC’s SUVI Program).
There are some key thresholds to note, such as:
- lease agreements must be 48 months or more to get full funding, otherwise the incentive is discounted based on the term of the lease
- Incentive is based on GVW, as per this Incentives Levels by Class table
For more information
Transport Canada will be hosting an informational webinar to provide additional details of the iMHZEV Program on July 14 at 10am PST. Interested participants are encouraged to register here.
Learn more about the iMHZEV Program, including frequently asked questions and answers, by visiting the Government of Canada website.
