Clean Technology (CT) Investment Tax Credit (ITC)
No fixed amount
Tax Credit
Description:
The CT ITC is a refundable tax credit for capital invested in the adoption and operation of new clean technology (CT) property in Canada from March 28, 2023, to December 31, 2034.
Comments on Funding:
The CT ITC rate may be up to 30% of the capital cost of CT property that is acquired and that becomes available for use from March 28, 2023, to December 31, 2033.
The CT ITC rate may be up to 15% for property acquired and that becomes available for use in 2034, and will be unavailable after 2034.
Continuous Intake
Eligibility:
Applicants must be be:
1. A taxable Canadian corporation (including a taxable Canadian corporation that is a member of a partnership)
2. A mutual fund trust that is a real estate investment trust (including such a trust that is a member of a partnership)
Employers who elect to meet the labour requirements can avoid claiming the reduced tax credit rate.
Application Steps:
The credit is claimed on either your corporate tax return or trust tax return.
If your project includes different types of eligible property, you may be able to claim multiple ITCs for the same project.
Documentation Needed:
For Corporations:
1. T2SCH31, Investment Tax Credit – Corporations
a) Include the ITC claim for CT at line 155 of Schedule 31.
b) Ensure the amount is reflected on line 780 of your T2 Corporation Income Tax Return.
2. Details of how the ITC was calculated
3, T2 Corporation Income Tax Return
For Partnerships:
1. T5013 Statement of Partnership Income
2. Details of ITC calculation
3. Written notification of CT ITC allocations
4, T2SCH31 for Corporate Members
5. Written Notification of allocated amounts
For Trusts:
1. T3 Trust Income Tax and Information Return
2. Details of ITC calculation
3. T3 Trust Income Tax Return
Other Things to Note:
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