Clean Buildings Tax Credit
The clean buildings tax credit is a refundable income tax credit for qualifying retrofits that improve the energy efficiency of eligible commercial and multi-unit residential buildings with four or more units.
Offered by Ministry of Finance
Amount
Five percent of qualifying expenditures paid on the retrofit
Quick eligibility check
Who can apply
To claim the clean buildings tax credit you must be:
- A corporation with a permanent establishment in B.C., or
- An individual, including a trust, that:
- Is resident in B.C., or
- Is not resident in B.C. but has income earned in B.C. for income tax purposes
You must meet these requirements in the tax year you are claiming the credit.
To be eligible, the building being retrofitted must be located in B.C. and wholly consist of one or more of the following types:
- A multi-unit residential building consisting of four or more dwellings
- Accommodation (only includes buildings classified as class 6 property under the Assessment Act)
- A college or university
- Food services
- Hospital
- Logistics and warehousing
- Long-term care
- Offices
- Retail – food
- Retail – other
- Schools
- Other buildings classified as class 6 or class 8 property under the Assessment Act
A qualifying retrofit is an alteration or renovation of an eligible building that is:
- Undertaken for the purpose of reducing the energy use intensity (EUI) of the building. Learn more about the energy targets and how to calculate them
- Certified by the Ministry of Finance, and
- Completed before April 1, 2027
About the funding
The clean buildings tax credit is a refundable income tax credit for qualifying retrofits that improve the energy efficiency of eligible commercial and multi-unit residential buildings with four or more units.
The credit amount is five percent of qualifying expenditures paid on the retrofit.
Only the expenditures that are directly attributable to the retrofit qualify.
You must make or incur the expenditures under the terms of an agreement entered into after February 22, 2022, and paid before April 1, 2026.
Show all funding details
Keep in mind:
- You cannot include expenditures that another person included in calculating their clean buildings tax credit. If you are a member of a partnership, you may include your appropriate portion of the partnership’s qualifying expenditures
- The expenditure is reduced by any payments received under a program designed to provide assistance with the cost of alteration or renovation of the building or the land it is on
Examples of qualifying expenditures
- Heating, ventilation and air-conditioning systems
- Fans
- Interior and exterior lighting devices
- Service water heating equipment
- Pumps
- Receptacle loads and miscellaneous equipment
- Elevators and escalators
- Building envelope, including improvement to the insulation
- Permits required for, or for the rental of equipment used in the course of, the qualifying retrofit
- Qualified person certifying the retrofit
Claimed through the Canada Revenue Agency on your corporate tax return.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Accelerated Investment Incentive | Tax Credit | no fixed amount | Open |
| Air Quality Improvement Tax Credit | Tax Credit | no fixed amount | Open |
| Clean Technology (CT) Investment Tax Credit (ITC) | Tax Credit | No fixed amount | Open |
| Clean Technology Investment Tax Credits (ITC) | Tax Credit | no fixed amount | Open |
