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Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Financial support for carbon mitigation projects
Last Update: March 4, 2026
Funding available
Up to 10% of project cost
Timeline
- Open Date : January 1, 2022
- Closing date : December 31, 2040
Location
Canada
Overview
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.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Up to 10% of project cost
Timeline
- Open Date : January 1, 2022
- Closing date : December 31, 2040
Eligible candidates
Eligible Industries
- Utilities
- Construction
- Manufacturing
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Projects capturing carbon dioxide (CO2) emissions from fuel combustion, industrial processes, or directly from the air.
- Projects transporting captured CO2 for further storage or use.
- Projects storing captured carbon in dedicated geological storage facilities.
- Projects using captured carbon in concrete production in Canada or the United States through eligible storage processes.
Eligibility
Who is eligible?
- Taxable Canadian corporations (including corporations that are members of a partnership)
- Companies with eligible carbon capture, utilization, and storage (CCUS) projects
- Businesses in industrial sub-sectors such as concrete, plastics, and fuels
Who is not eligible
- Organizations seeking to use captured CO2 for enhanced oil recovery or other non-eligible uses.
- Companies that intend to claim more than one clean economy investment tax credit for the same eligible property.
- Applicants seeking to apply for both the CCUS ITC and investment tax credits under section 127 of the Income Tax Act (such as the Atlantic Investment Tax Credit) for the same eligible expense.
Eligible expenses
- Acquisition of equipment and assets used for carbon capture operations.
- Acquisition of equipment and assets used for the transportation of captured carbon.
- Acquisition of equipment and assets dedicated to the use of captured carbon in the production of concrete in Canada or the United States via eligible storage processes.
- Acquisition of equipment and assets required for the dedicated geological storage of captured carbon.
Eligible geographic areas
- Canadian provinces and territories
Additional information
- The CRA administers the credit applications through corporate income tax returns, while NRCan handles technical and scientific evaluations.
- Applicants must use the RNCan secure portal for submitting project plans and for review of evaluations.
- Specific rules prevent claiming both this credit and certain other investment tax credits for the same eligible property or expense.
- If project details change after submission, NRCan may request a revised project plan and updated evaluation.
Frequently Asked Questions about the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) Program
Here are answers to the most common questions about the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)?
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.
How much funding can be received?
Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) Funds up to 10% of admissible expenses.
What is the deadline to apply?
The application deadline for this grant program is **December 31, 2040**. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) program?
To be eligible for the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) program, you must:
Must be a taxable Canadian corporation, including those in a partnership
Must have eligible CCUS project expenses incurred between January 1, 2022, and December 31, 2040
What expenses are eligible under Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)?
Projects capturing carbon dioxide (CO2) emissions from fuel combustion, industrial processes, or directly from the air.
Projects transporting captured CO2 for further storage or use.
Projects storing captured carbon in dedicated geological storage facilities.
Projects using captured carbon in concrete production in Canada or the United States through eligible storage processes.
Who can I contact for more information about the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)?
You can contact Natural Resources Canada (NRCan).
Where is the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) available?
The Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) program is available across Canada.