If you operate trucks, buses, or other large commercial vehicles, switching to zero-emission models can be expensive. The Medium and Heavy-Duty Zero-Emission Vehicles Program helps lower these costs by offering federal incentives for eligible purchases and leases across Canada. Transport Canada runs the program. It is currently open.
This guide explains who can apply, how much funding is available, and what the application process looks like.
The official program name is the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program. It provides financial incentives to help Canadian organizations replace gas or diesel vehicles with zero-emission options.
You can receive incentives when you purchase or lease an eligible zero-emission vehicle for 12 months or longer. Key funding details include:
Incentive levels depend on the vehicle class and base trim. Transport Canada publishes tables showing the eligible amounts for each type.
To qualify, the vehicle must be medium- or heavy-duty and zero-emission. This includes:
The Medium and Heavy-Duty Zero-Emission Vehicles Program is open to many applicants, including:
Your organization must purchase or lease an eligible vehicle that will be operated in Canada. Leases must be at least 12 months long to qualify.
Tools like GrantHub’s eligibility matcher can help you quickly check if your business type, province, and vehicle plans fit with available clean transportation programs.
The incentive is federal, but the application process usually happens through participating dealerships. You do not apply directly to Transport Canada.
Before you buy or lease, check that the make, model, and trim are approved under the program. Incentive amounts connect to the base trim and vehicle class.
Dealerships submit the incentive application for you. They will apply the incentive at the point of sale or lease, lowering your upfront cost.
You must keep the vehicle for the full minimum 12-month period. Selling or ending the lease early can mean returning part of the incentive.
Keep all documents related to the purchase or lease, incentive amount, and vehicle use. This is important for compliance and possible audits.
Assuming all zero-emission trucks qualify
Only vehicles on Transport Canada’s approved list are eligible. Always confirm before you sign a contract.
Leasing for less than 12 months
Short-term leases do not qualify and can cause you to lose the incentive.
Overlooking program limits
The program caps incentives at 10 vehicles or $1,000,000 per year per organization. Plan your fleet purchases to stay within these limits.
Q: How much funding can I receive per vehicle?
You can receive up to $200,000 per vehicle, depending on the vehicle class, with a cap of 75% of the MSRP. This maximum may vary by vehicle class or use, so check the latest Transport Canada tables.
Q: Is the Medium and Heavy-Duty Zero-Emission Vehicles Program a grant or a loan?
It is a non-repayable incentive applied at the point of sale or lease. You do not need to pay it back.
Q: Can I lease instead of buying a vehicle?
Yes. Leases are eligible as long as they are 12 months or longer.
Q: How many vehicles can my business claim in one year?
You can receive incentives for up to 10 vehicles or $1,000,000 per calendar year, whichever comes first.
Q: Are these incentives taxable?
In most cases, incentives are treated as government assistance and may reduce the deductible cost of the vehicle. Check with your accountant for your situation.
GrantHub tracks hundreds of active grant and incentive programs across Canada—including clean transportation funding—so you can quickly see which ones match your business profile.
If you’re planning a broader transition to zero-emission fleets, you may also want to explore:
The Medium and Heavy-Duty Zero-Emission Vehicles Program can lower the cost of electrifying your fleet. Before you buy or lease, confirm that your vehicle is eligible and check annual limits. GrantHub helps Canadian businesses track clean transportation incentives, so you can plan your fleet upgrades with confidence.
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