Eligible businesses can now apply for and claim new tax credits
These new tax credits, representing $93 billion in federal incentives by 2034–35, will play an essential role in attracting investment, supporting Canadian innovation, creating jobs and driving Canada’s economy toward net zero by 2050.
Clean Economy Investment Tax Credits include:
- Carbon Capture, Utilization and Storage investment tax credit
- Clean Technology investment tax credit
- Clean Technology Manufacturing investment tax credit
- Clean Hydrogen investment tax credit
- Clean Electricity investment tax credit
- Electric Vehicle Supply Chain investment tax credit
Program Details
The Clean Technology ITC and CCUS ITC are now available for qualifying businesses, with more info to come on the Clean Technology Manufacturing ITC and Clean Hydrogen ITC.
The Clean Technology ITC - Examples of eligible clean technologies include clean electricity generation equipment such as wind turbines and solar panels, stationary electrical energy storage, low-carbon heating systems such as ground and air source heat pumps, and non-road zero-emission vehicles.
The CCUS ITC - Administered jointly by NRCan and the CRA, will provide support to taxable Canadian corporations that incur eligible expenditures for qualified CCUS projects.
The Clean Technology Manufacturing ITC will provide support to Canadian companies that are manufacturing or processing clean technologies and their precursors, providing support for 30 percent of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals.
The Clean Hydrogen ITC will provide a 15 to 40 percent refundable tax credit for investments in projects that produce hydrogen, with the projects that produce the cleanest hydrogen receiving the highest levels of support. Equipment needed to convert hydrogen into ammonia, in order to transport hydrogen, may also be eligible.
