Clean Technology Investment Tax Credit
A refundable tax credit for capital invested in the adoption and operation of new technology for property in Canada.
Who
The Canada Revenue Agency (CRA) in collaboration with Natural Resources Canada (NRCan), is looking to incentivize corporations in the adoption of clean technology solutions, including solar lighting solutions, by offering the Clean Technology Investment Tax Credit, which provides a refundable tax credit for capital invested in the adoption and operation of new clean technology property in Canada.
To claim the Clean Technology ITC you must be:
- a taxable Canadian corporation (including a taxable Candian corporation that is a member of a partnership OR
- a mutual fund trust that is a real estate investment trust (including such a trust that is a member of a partnership)
What
The Clean Technology ITC rate may be up to 30% of the capital cost of clean technology property that is acquired and that becomes available for use from March 28, 2023, to December 31, 2033.
The Clean Technology ITC rate may be up to 15% for property that is acquired and that becomes available for use in 2034. The Clean Technology ITC will be unavailable after 2034.
In order to qualify, clean technology property must:
- Be equipment that is situated in and intended for use exclusively in Canada
- NOT have been previously used or acquired for use or lease, for any purpose before acquisition by the taxpayer
Eligible clean technology property includes any of the following:
- Equipment used to generate electricity from solar, wind and water energy
- Stationary electricity storage equipment that does not use any fossil fuel in operation (such as batteries and pumped hydroelectric storage)
- Active solar heating equipment, air-source heat pumps and ground-source heat pumps
- Non-road zero-emission vehicles and related charging and refueling equipment that is used primarily for such vehicles
- Equipment used exclusively for the purpose of generating electrical energy or heat energy (or a combination of both), solely from geothermal energy, unless it is part of a system that extracts fossil fuels for sale
- Concentrated solar energy equipment
- Small modular nuclear reactors
If you meet certain requirements, you can receive the regular credit rate when claiming the Clean Technology ITC on your income tax return.
When
The Clean Technology Investment Tax Credit started March 23rd, 2023 and will run until December 31st, 2034.
Helpful Links
The following are some helpful links that provide further information on the Clean Technology Investment Tax Credit:
Other Available Funding & Incentive Programs Include:
SGI Provincial Traffic Safety Fund
Specific to Saskatchewan, SGI is providing funding opportunities for communities around Saskatchewan to help make our roadways a safer place
Trail Catalyst Fund
The Trail Catalyst Fund is a single gateway for applicants to access a wide range of available funds. Groups or organizations that own or manage a section of the Trans Canada Trail are eligible for the Trail Catalyst Fund. This may also be extended to organizations within the broader trail sector for projects related to tree planting, youth employment subsidy, and trail work in Indigenous communities.
Community Energy Systems
The Federation of Canadian Municipalities (FCM) has launched an initiative called the The Green Municipal Fund (GMF) which aims to help Canadian communities build a sustainable, resilient and prosperous future. One of the specific funding opportunities the GMF is providing is Capital Project: Community Energy Systems which aims to provide funding for communities to construct a 100% renewable community energy system.