Clean Technology Investment Tax Credits (ITC)
no fixed amount
Tax Credit
Description:
A corporation can claim refundable tax credit that is equal to 30% of the capital cost of eligible clean technology property that is acquired and that becomes available for use after March 27, 2023, and before 2034. The rate will be reduced to 15% in 2034 and nil after 2034.
Comments on Funding:
Rolling deadline
Eligibility:
The applicant must be a corporation or a business with a qualifying equipment, including:
1. certain zero-emission power generation technologies (including concentrated solar energy equipment and small modular nuclear reactors);
2. storage equipment for zero-emission energy and non-road zero-emission vehicles.
3. Geothermal energy systems are also generally included, unless they are used for geothermal energy projects that will co-produce oil, gas or other fossil fuels.
4. Businesses may claim more than one clean economy ITC for the same project, if the project includes different types of eligible property.
Application Steps:
On line 155 of Schedule 31, the applicant must enter the amount of the clean technology ITC they are claiming.
Documentation Needed:
Applicants must provide a completed Line 155 of Schedule 31, and other required forms as requested.
Other Things to Note:
Effective November 28, 2023, businesses have to meet certain labour requirements – prevailing wage requirements and apprenticeship requirements. Otherwise, the credit rate will be reduced by 10 percentage points. Exemptions apply for the clean technology ITC for acquisitions of off-road zero emission vehicles and acquisitions and installations of low carbon heat equipment.
About the author
Maurice
