Clean Technology Tax Credit

The Clean Technology investment tax credit is a refundable 30% tax credit available to businesses for eligible investments in certain clean electricity generation, stationary electricity storage, low-carbon heating and non-road zero-emission vehicles and related charging and refuelling infrastructure, and geothermal energy systems. The credit is available for investments in eligible property that is acquired and that becomes available for use on or after March 28, 2023. The ITC will be reduced by half in 2034, and no longer available after 2034. The 2023 Fall Economic Statement proposed to expand eligibility to include systems that produce electricity, heat, or both electricity and heat from waste biomass. Enabling legislation, which received royal assent on June 20, 2024, can be found in section 127.45 of the Income Tax Act. Labour requirements must be met to receive maximum credit rates.

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