Canada announces incentive program for trucks

July 18, 2022

Ryan Witkowski


The push for zero-emission vehicles in the transportation industry is getting some help from the Canadian government.

On July 11, the government of Canada announced the Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program. The program offers Canadian for profit and nonprofit organizations, provinces, territories and municipalities incentives towards the purchase or lease of eligible medium and heavy-duty zero-emission vehicles. Currently, the program is not available to individuals.

The $547.5 million funding for the program will be distributed over the next four years, or until all available funding is exhausted. In order to get the incentive, the new vehicle must be part of the program’s list of eligible vehicles.

Automakers wishing to have their vehicles added to the list must first submit an application to Transport Canada.

“Transportation is the second largest source of greenhouse gas emissions in Canada, accounting for a quarter of Canada’s total GHG emissions,” the release read. “One way to reduce the amount of transportation-related GHG emissions is to put more zero-emission vehicles on the road.”

According to the release, to be eligible for the incentive under the new program, a vehicle must:

  • meet all of Canada’s Motor Vehicle Safety Standards;
  • be meant for use on public streets, roads, and highways or other paved surfaces; and
  • be plated and registered in Canada in the eligible recipient organization’s name.

Only new vehicles – ones that have not been previously plated – are eligible and must be purchased or leased in Canada from a licensed dealer. Amounts of the incentive range from $10,000 to $200,000, depending on the type and class of the vehicle. The incentive will be applied at the point-of-sale by the dealer. For leased vehicles, the amount of the incentive is prorated depending on the length of the lease.

“We know that the higher upfront purchase cost of medium and heavy-duty zero-emission vehicles can make it difficult to adopt this clean technology,” the release read. “The Incentives for Medium- Heavy-duty Zero-Emission Vehicles Program are helping to make it more affordable.” LL