CLEAN ECONOMY ITCs: OVERVIEW
Clean
Technology
Carbon Capture, Utilization and Storage
Clean
Hydrogen
Clean
Technology Manufacturing
Clean
Electricity
†
†
Maximum ITC Rate Offered
30%*
60%
50%
37.5%*
40%
25%
15%*
30%
15%*
Eligible Taxpayers (directly or through a partnership)
Taxable Canadian corporations
& real estate investment trusts
Taxable
Canadian corporations
Taxable Canadian corporations
Taxable Canadian corporations
Canadian corporations (taxable and certain tax-exempts);
EV
^
GA
Expenditure
Start Date
March 28, 2023
Jan. 1, 2022
March 28, 2023
Jan. 1, 2024
April 16
2024
¤
GA
^
BM
^
GA
^
GA
ITC Phase
out Starts
Jan. 1, 2034
Jan. 1, 2031
Jan. 1, 2034
Jan. 1, 2032
N/A
ITC End Date
Dec. 31, 2034
Dec. 31, 2040
Dec. 31, 2034
Dec. 31, 2034
Dec. 31, 2034
Recapture
Period
10 years
20 years
20 years
10 years
10 years
(20 years for natural gas systems )
†
Status as of September 2024
Enacted
(s. 127.45)
Enacted
(s. 127.44 and Part XII. 7)
Enacted
(s. 127.48)
Enacted
(s. 127.49)
Draft legislation released for comment in August 2024
Submission of project plan and certification by NRCan required.
†
Labour requirements applicable to attain highest ITC rate.
*
November 21, 2023 for expansion to support using waste biomass to generate heat and electricity.
BM
“Available for use” rules defer ITC claim until year in which property is actually “available for use”.
^
Cost of ITC-eligible property reduced by “government assistance” received, receivable or expected.
GA
Limited to projects that did not begin construction before March 28, 2023. Separate rules applicable to Crown corporations.
¤
Claimants involved in electric vehicle assembly and battery production and cathode active material production may also be eligible for 10% EV Supply Chain ITC on the cost of buildings (5% for 2033-34; nil thereafter).
EV