Clean Technology (CT) Investment Tax Credit (ITC)

Country / jurisdiction: Canada · Year: 2024 · Status: In force · Level: National · Type: Voluntary

The Clean Technology investment tax credit provides a 30-per-cent refundable tax credit to taxable Canadian corporations and mutual fund trusts that are real estate investment trusts for the capital cost of investments in certain clean technologies, including certain clean electricity generation systems, stationary electricity storage systems that do not use fossil fuels in their operation, certain low-carbon heating equipment, non-road zero-emission vehicles and related charging or refuelling infrastructure. The credit applies to property that is acquired and becomes available for use on or after March 28, 2023, with the credit rate reduced by one half in 2034. The credit will no longer be available after 2034. Businesses have to adhere to certain labour requirements in order to qualify for a 30 per cent tax credit rate. If the labour requirements are not met, investments would qualify for a 20 per cent tax credit rate.

Official source: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/section-127.45.html