Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Canada
Financial support for carbon mitigation projects
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJanuary 1, 2022
- grant_single|closingDateDecember 31, 2040
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Canada Revenue Agency (CRA)
- Natural Resources Canada (NRCan)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Investment Tax Credit (ITC) for Carbon Capture, Utilization, and Storage (CCUS) is a refundable tax credit available for eligible expenses incurred in CCUS projects from January 1, 2022, to December 31, 2040. The program supports the acquisition of assets for capturing CO2 emissions from fuel combustion, industrial processes, or direct air capture, and its subsequent transportation, storage, or utilization, provided at least 10% of the captured CO2 is used in qualifying activities like geological storage or concrete production in Canada or the U.S. Eligible applicants are taxable Canadian corporations engaged in CCUS projects.
grant_single_labels|terms_and_conditions
The Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit provides specific financial incentives tailored to support eligible projects in capturing and utilizing carbon emissions effectively. The financing modalities ensure a structured approach to supporting these initiatives under defined conditions.
- Refundable investment tax credit applied to eligible expenses from January 1, 2022, to December 31, 2040.
- Credit can only be claimed once per eligible property when considering similar tax credits, ensuring no overlap with other clean economy or regional tax credits.
- Credit is accessible through corporate income tax returns filed with the Canada Revenue Agency (CRA).
grant_single_labels|projects
The Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) supports projects aimed at capturing, transporting, utilizing, or storing carbon emissions effectively. These projects focus on implementing technologies and processes to manage carbon dioxide for environmental benefits.
- Capture of CO2 that would otherwise be emitted into the atmosphere.
- Direct capture of CO2 from ambient air.
- Transport of captured carbon to storage or utilization sites.
- Storage of captured carbon in dedicated geological storage.
- Utilization of captured carbon in concrete production within Canada or the U.S. using approved CO2 storage processes in concrete.
grant_single_labels|admissibility
Eligibility for this grant is determined by specific criteria related to the corporation's nature and the project activities.
- The applicant must be a taxable Canadian corporation, including a taxable Canadian corporation that is a member of a partnership.
- There must be an eligible CCUS project with eligible CCUS expenditures incurred between January 1, 2022, and December 31, 2040.
grant_eligibility_criteria|who_can_apply
To qualify for the Crédit d'impôt à l'investissement (CII) for Carbon Capture, Utilization and Storage (CUSC), applicants must be:1. A taxable Canadian corporation, which can include members of a taxable Canadian partnership.2. Engaged in a qualifying CUSC project with eligible CUSC expenditures incurred between January 1, 2022, and December 31, 2040.
grant_eligibility_criteria|who_cannot_apply
This grant does not specify certain types of companies or industries that are explicitly excluded from eligibility. Eligibility is primarily based on the nature of expenses and project criteria rather than excluding specific industries.
grant_eligibility_criteria|eligible_expenses
Eligible projects under this grant are focused on Carbon Capture, Utilization, and Storage (CCUS) processes to minimize CO2 emissions and utilize captured carbon effectively. These projects include capturing CO2 from various sources, transporting it, and storing or using it in eligible ways.
- Capture of CO2 that would otherwise be released into the atmosphere.
- Capture of CO2 directly from the ambient air.
- Transportation of captured carbon.
- Storage of captured carbon in a dedicated geological storage.
- Usage of captured carbon in the production of concrete within Canada or the United States through eligible CO2 storage processes in concrete.
grant_eligibility_criteria|zone
This grant is targeted at Canadian taxable corporations, including those within partnerships, and does not specify further regional restrictions. Therefore, it applies to eligible projects across all of Canada.
- All provinces and territories in Canada.
grant_single_labels|criteria
grant_single_labels|register
- Step 1: Conduct the Initial Environmental Impact Certification (EIIC)
- An obligatory step to be performed before submitting the project plan.
- Step 2: Complete the Prescreening Questionnaire
- Answer the questionnaire to determine your eligibility and that of your project.
- Step 3: Prepare and Submit the Project Plan
- Use the secure RNCan portal to upload your project plan.
- Include detailed technical documentation and any other required information.
- Step 4: Initial Project Evaluation by RNCan
- RNCan evaluates the submitted project plan for adherence to CUSC criteria.
- Additional information may be requested if the initial documentation is insufficient.
- Receive the initial project evaluation via the RNCan secure portal.
- Step 5: Application Decision and Communication
- ARC, in conjunction with RNCan, determines if your CUSC project qualifies as one or multiple projects.
- ARC informs you of the decision regarding project determination.
- For each project determination, submit a project plan within 180 days of the notice.
grant_single_labels|otherInfo
This grant provides financial support for eligible expenses related to carbon capture, utilization, and storage projects undertaken between January 1, 2022, and December 31, 2040. This initiative is managed by the Canada Revenue Agency and Natural Resources Canada.
- Projects must handle at least 10% of the captured CO2 in an eligible manner to qualify.
- Eligibility is limited to taxable Canadian corporations.
- There are four categories of eligible expenses: capture, transport, utilization, and storage of carbon.
- The carbon must be used in approved ways, such as geological storage or concrete production in Canada or the U.S.
