What You Need to Know About Canadian EV Fleet Incentives – While They Last

For fleet operators considering the switch to electric vehicles, Canada offers some of North America’s most comprehensive commercial electric vehicle incentive programs. From federal initiatives to provincial and utility support, understanding these programs can significantly reduce your costs. While some incentive programs for light-duty vehicles have been scaled back, we expect governments to support adopters of medium- and heavy-duty electric vehicles until that segment too has reached more critical mass.

Federal Programs: Your Foundation for Savings

The Government of Canada has established programs that every fleet operator should know about:

iMHZEV Program: Supporting Medium- and Heavy-Duty Transitions

If you’re operating Class 2B to Class 8 vehicles, the iMHZEV program offers substantial support for your electrification journey: Learn more about maximize your electrification ROI.

• Coverage up to 75% of vehicle MSRP, ranging  up to $150K for commercial MHDVs
• Stackable with provincial vehicle incentives
• Available nationwide
• Applied at the point of sale by dealerships and manufacturers –no additional paperwork after purchase.
• Annual limit of 10 vehicles per business

iZEV Program: Light-Duty Vehicle Support

For smaller delivery vehicles and support fleets:

• Up to $5,000 per light-duty zero-emission vehicle
• Annual limit of 10 vehicles per business
• Available through March 31, 2025
• Applicable to ZEVs made in Canada or in countries with which Canada has a free trade agreement. More details here.

Provincial Programs: Maximizing Local Opportunities

British Columbia: Comprehensive Support

BC offers some of Canada’s most generous provincial incentives:

Powering Your Fleet – BC’s Vehicle Incentives

• 33% of purchase price coverage up to $150,000 per vehicle

• Limit of 10 per company, with the ability to request exceptions Building the Future – Infrastructure Support for BC Fleets

• Up to 75% of costs for Level 3 chargers —capped at $115,000 per charger and $300,000 per project

• Up to 50% of costs for Level 2 chargers —capped at $2,000 per charger and $25,000 per applicant annually Roadmap to Success – Professional Planning

• Covers up to 50% of costs for professional planning, capped at $10,000 for fleets with fewer than 150 vehicles and $15,000 for fleets with 150 or more vehicles

• Requires a fleet assessment by a certified partner, such as 7Gen Double the Credits

• B.C.offers additional and unique carbon credit opportunities through the British Columbia Low Carbon Fuel Standard (BC-LCFS) program

• This can be added on top of the Federal carbon credit program orClean Fuel Regulations (CFR).

Quebec: Leading the Way

Quebec provideds robust programs to support both vehicles and infrastructure and has therefore seen the highest EV deployment across various categories, in the country. As a result their incentive programs are currently under review and will be relaunched in early 2025.

Drive Bigger Savings – Quebec’s Vehicle Incentives

• 50% of purchase price coverage, up to $175,000 per vehicle

• An additional 15% in financial assistance if vehicles are assembled or manufactured in Quebec

• Note: Temporary suspension as of September 2024, until further notice. The announced end of the program is March 31st, 2025 but is retroactive to April 1, 2021 for the “Acquisition of technology” and “Acquisition of used heavy vehicles” components. Power Your Fleet – Infrastructure Support in Quebec

• Up to 50% of costs for Level 3 chargers —capped at $60,000 per charger and $150,000 per applicant annually;

• Up to 50% of costs for Level 2 chargers —capped at $5,000 per charger and $49,000 per applicant annually. Note: Temporary suspension from February 1 to March 31, 2025. Operating in Montreal? – Exclusive Incentives Not to Miss

• Take advantage of this specialized program for projects completed by September 2025

• Up to 50% of costs for chargers —capped at $5,000 for L2 and $75,000 for L3 per charger and $100,000 per applicant Financial support for Planning Energy Management

• Covers 50% of planning costs (excluding GST) up to a maximum of $30,000 for the planning

• Benefit from a maximum financial assistance of $150,000 per financial year

• Supports: Energy analysis, Feasibility and planning study, Implementation of measures & Energy performance monitoring

Nova Scotia: Atlantic Canada Focus

• Point-of-sale rebates applicable for class 2B to 8 vehicles
• Up to $50,000 for vehicles purchased within Atlantic Canada and $37,500 for vehicles purchased outside the region
• Rebates available for up to 10 vehicles per business annually

Manitoba: New Player in the Game

• Up to $4,000 for new vehicles
• Used vehicle support up to $2,500
• Program active through March 31, 2026
• Eligible for purchases dating back to August 1, 2023

Maximizing Your Benefits: Strategic Approaches

At 7Gen, we partner with our customers to streamline paperwork and manage applications for the following programs. This process includes key considerations and necessary documentation to ensure success.

The more detailed and accurate your documentation, the faster your incentives will be approved and processed.

Carbon Credits: The Hidden Opportunity

Beyond direct incentives, carbon credit programs can generate additional revenue for your fleet:

• Federal Clean Fuel Regulations (CFR) nationwide

Entities must submit annual credit creation reports by April 30 for the preceding compliance period

• Entities must submit annual credit creation reports by April 30 for the preceding compliance period
• BC’s Low Carbon Fuel Standard (LCFS)

 Compliance reports are due on March 31 following each compliance period

• Compliance reports are due on March 31 following each compliance period
• Revenue potential varies by fleet size

Real World Impact: The Numbers

How incentives drive significant potential savings for a typical fleet:

Medium-Duty Delivery Van Example —British Columbia:

• Vehicle Class: 4

• Base Vehicle Cost: $230,000

• Federal iMHZEV: -$75,000

• BC Provincial Incentive: -$75,000

• Net Cost: $80,000 Plus, Ongoing Benefits:

• Carbon credit revenue

• Reduced operating costs

• Lower maintenance expenses

• Utility rate savings

Taking Action: Maximize your saving with 7Gen

While navigating these incentives might seem complex, the potential savings make it worthwhile. At 7Gen, we specialize in simplifying this process, helping you:

• Identify the available incentives
• Stack programs effectively
• Complete application processes
• Track and report outcomes
• Generate additional revenue through carbon credits Ready to maximize your fleet electrification benefits? Let’s create your EV deployment plan and incentive strategy.

Your go-to resource for a seamless transition to a zero-emission fleet.

Related reading: how government incentives work.