British Columbia clean buildings tax credit

• Tax credit equivalent to 5% of qualifying expenditures paid on eligible building retrofit projects.

• The applicant must be a corporation with a permanent establishment in British Columbia or an individual (including a trust) who is resident in B.C. or has B.C.-sourced income.
• The building to be retrofitted must be located in British Columbia and fall under eligible categories such as multi-unit residential (four or more units), accommodation, offices, schools, colleges/universities, hospitals, logistics/warehousing, long-term care, food services, retail, or other buildings classified as class 6 or class 8 property under the Assessment Act.
• The retrofit project must be undertaken to reduce the building's energy use intensity and must be certified by the Ministry of Finance.
• The applicant must not be an entity that is exempt from B.C. income tax.

Who is eligible?

• Corporations with a permanent establishment in British Columbia
• Individuals or trusts resident in British Columbia
• Individuals or trusts not resident in British Columbia but with income earned in BC for income tax purposes

Who is not eligible

• Entities that are exempt from BC income tax.

Eligible expenses

• Heating, ventilation, and air-conditioning systems
• Fans
• Interior and exterior lighting devices
• Service water heating equipment
• Pumps
• Receptacle loads and miscellaneous equipment
• Elevators and escalators
• Building envelope improvements, including insulation upgrades
• Permits required for or the rental of equipment used in the retrofit
• Fees for a qualified person certifying the retrofit

Eligible geographic areas

• British Columbia

• Step 1: Certification of Retrofit by a Qualified PersonHire a qualified person to assess the retrofit and confirm that it meets the required energy use intensity targets.
• The qualified person collects and submits information about the retrofit, including building details, energy usage before and after the retrofit, and a report certifying energy savings.
• The qualified person submits this information online and receives a confirmation number.
• Step 2: Application for Tax Credit CertificateUse the confirmation number from Step 1 to complete the online application for the tax credit certificate.
• Provide necessary details, including parcel identification (PID), cost of retrofit, and full legal names and relevant taxpayer identification numbers of all claimants.
• Submit the completed application online to the Ministry of Finance before the deadline.
• Step 3: Submit Additional Supporting Documents (if requested)If contacted, provide any additional supporting documents through the secure online document submission portal.
• Step 4: Receive Tax Credit Certificate and Claim CreditApproved applicants receive a unique certificate number and an estimate of the tax credit amount.
• Claim the clean buildings tax credit on your income tax return filed with the Canada Revenue Agency (CRA).
• Ensure to claim the credit within 18 months after the end of the tax year following the year in which the retrofit was completed.

• You must claim the tax credit no later than 18 months after the end of the tax year following the year in which the retrofit was completed.
• The Canada Revenue Agency (CRA) may audit your expenditures after certification is granted.
• Only expenditures not already included by another person in their credit calculation are permitted.
• Receiving certification from the Ministry of Finance confirms retrofit eligibility but not the eligibility of expenditures.