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🚗🔌 New Incentives For Medium- And Heavy-Duty Zero-Emission Vehicles Program

Sunday, 22 January 2023 08:34.PM

Canadians have made it clear that they want clean air, good jobs and lower bills. The Government of Canada continues to deliver on these priorities by making zero-emission vehicles more affordable that help reduce pollution, create more well-paying jobs, and build a cleaner world for generations to come.

On July 11, 2023, as part of #EVWeek in Canada, the Minister of Transport, the Honourable Omar Alghabra, announced the new Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (iMHZEV) Program. Starting on July 11, this 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% of the price difference between an electric vehicle and a traditional vehicle. These incentives will be:

• 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.

With this new program, the federal government is helping save money, reduce pollution, and support Canada's target of 100% 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.

"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. Today's announcement is about making sure that Canadian businesses and leaders of our communities have the options they need to transform their fleets to zero-emission vehicles."
- The Honourable Omar Alghabra, Minister of Transport

Quick Facts

• 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.
• With the launch of the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles (IMHZEV) Program today, Transport Canada now administers two incentive programs aimed to encourage Canadians and Canadian businesses to switch to zero-emission vehicles. As announced in Budget 2022, $1.7 billion is invested to extend and expand the Incentives for Zero-Emission Vehicles Program (iZEV) (for light duty and passenger vehicles) until March 2025, including a broadening of the eligibility under the program to capture larger light-duty zero-emission vehicles (I.e., SUVs, pick-up trucks). The expanded Incentives Zero-Emission Vehicle Program came into effect on April 25, 2022.
• Budget 2022 also proposes to provide close to $75.8 million over five years, starting in 2022-23, to work with provinces and territories to develop and harmonize regulations and to conduct safety testing for long-haul zero-emission trucks.

SOURCE: Transport Canada

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