Leasing a zero-emission truck or bus can feel out of reach when sticker prices are high. That’s where federal incentives come in. Canada’s Incentives for Medium and Heavy-Duty Zero-Emission Vehicles Program (iMHZEV) helps businesses lower the cost of leasing eligible zero-emission commercial vehicles, making fleet upgrades more realistic and cash-flow friendly.
The iMHZEV Program is a federal incentive delivered by Transport Canada. It supports businesses that purchase or lease medium- and heavy-duty zero-emission vehicles for commercial use.
To qualify, the vehicle must be:
If you plan to lease instead of purchase, the program still applies, as long as:
This structure is especially helpful for fleets that want flexibility or plan to rotate vehicles every few years as technology improves.
The incentive is applied per vehicle, with clear caps:
For leased vehicles, the incentive is typically applied at the point of sale and reflected in your lease cost, reducing monthly payments rather than reimbursing you later.
Tools like GrantHub’s eligibility matcher can help you filter vehicle and funding programs by province, industry, and fleet size in seconds.
Eligible applicants include:
You don’t need to be in transportation or logistics. Construction firms, utilities, municipalities, and service companies all commonly qualify.
This program provides repayable funding, not a traditional non-repayable grant. In practice, this means:
An accountant can confirm how this affects your specific tax treatment.
Federal incentives are particularly well suited to leasing strategies because they:
When combined with infrastructure funding—such as charging or hydrogen stations—leasing becomes a practical transition path rather than a financial gamble.
Signing a lease shorter than 12 months
Leases under one year do not qualify, even if the vehicle itself is eligible.
Assuming all electric trucks qualify
Only vehicles on the approved eligibility list are covered. Always confirm before signing.
Exceeding annual caps without planning
The program limits you to 10 vehicles or $1,000,000 per year. Large fleets should phase orders.
Ignoring tax implications
Because the incentive is repayable, it can affect depreciation and deductions.
Q: Can I lease a zero-emission truck instead of buying it?
Yes. Leases of 12 months or longer are fully eligible under the iMHZEV Program.
Q: How much incentive can I receive per leased vehicle?
You can receive up to $200,000 per vehicle, capped at 75% of the vehicle’s MSRP, depending on vehicle class.
Q: Is the incentive paid to me directly?
In most cases, the incentive is applied at the point of sale or lease and reflected in your pricing, rather than paid out later.
Q: How many vehicles can my business claim incentives for?
Up to 10 vehicles per calendar year, or $1,000,000 total, whichever comes first.
Q: Are plug-in hybrid vehicles eligible?
Yes, as long as they meet the program’s medium- or heavy-duty and zero-emission criteria.
After reviewing your questions, it helps to know that GrantHub tracks hundreds of active grant and incentive programs across Canada—including vehicle, infrastructure, and clean-tech funding—so you can see what matches your business profile.
If leasing zero-emission commercial vehicles is part of your fleet plan, federal incentives can dramatically change the numbers. The key is confirming eligibility before you sign a lease and coordinating vehicle and infrastructure funding together. GrantHub helps Canadian businesses identify which federal and provincial programs align with their fleet, location, and growth plans—so you can move forward with confidence.
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