As part of #EVWeek in Canada, the Minister of Transport, Omar Alghabra, introduced Transport Canada’s Incentives for Medium- and Heavy-Duty Vehicles Program (iMHZEV) Program. The new four-year, close to $550 million program, will help businesses and communities across the country make the switch to zero-emission vehicles.

The Medium- and Heavy-Duty Zero-Emission Vehicles Program will provide purchase incentives worth approximately 50 per cent of the price difference between an electric vehicle and a traditional vehicle.

“Helping Canadian businesses and communities make the switch to a zero-emission vehicle is win-win-win: it keeps our air clean, helps people save money on fuel, all while positioning Canada as a leader on building and powering these vehicles,” said Alghabra.

The incentives include the following:

  • applicable to purchase or lease commercial, medium- and heavy-duty zero-emission vehicles such as the Ford e-Transit cargo van, the Karsan e-Jest shuttle, the Lion8 vocational truck, the Volvo VNR-electric tractor truck, and more (eligible vehicles)
  • eligible to provinces and territories, municipal and local governments, organizations, and businesses
  • worth up to $200,000 per vehicle, and able to be combined with provincial or territorial incentives to make these vehicles even more affordable

The Minister of Transport, Omar Alghabra, introduces Canada’s new Incentives for Medium- and Heavy-Duty Vehicles Program. Credit: Government of Canada.

With this new program, the federal government is helping save money, reduce pollution, and support Canada’s target of 100 per cent sales of medium- and heavy-duty vehicles be zero-emission vehicles by 2040, where feasible.

#EVWeek in Canada will include zero-emission charging and alternative fuels refuelling infrastructure announcements by the Honourable Jonathan Wilkinson, Minister of Natural Resources, and federal colleagues from coast to coast.

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“Helping people and businesses make the switch to electric vehicles is central to our Emissions Reduction Plan. More and more, electric vehicles are becoming the affordable option, and our incentives can help tip the scales for anyone considering making the switch,” said Steven Guilbeault, Minister of Environment and Climate Change. “It is both fair and good policy for businesses to also get purchase incentives for medium- and heavy-duty vehicles, many of which are being produced right here in Canada.”

The transportation sector is Canada’s second-largest source of pollution. Moving to zero-emission vehicles through regulations and investments is a significant part of Canada’s $9.1 billion Emissions Reduction Plan to meet Canada’s Paris Agreement target for 2030 and get on track for net-zero emissions by 2050.

The Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program is expected to result in annual greenhouse gas emission reductions of up to 200,000 tonnes per year in 2026, growing to 3 million tonnes per year by 2030.

List of eligible vehicles under the Incentives for Medium- and Heavy-Duty Vehicles Program

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