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Source verified July 23, 2026
Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Refundable tax credit for carbon capture, use and storage
Get notified when Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) reopens
Latest source updateLast Update: October 4, 2026Latest change: The CCUS ITC technical guidance was updated to reflect Bill C-15 changes and now points readers to CRA guidance and a CCUS ITC contact page.View change
Latest source update
Last Update: October 4, 2026
Latest change: The CCUS ITC technical guidance was updated to reflect Bill C-15 changes and now points readers to CRA guidance and a CCUS ITC contact page.
CCUS ITC technical guide updated
The Technical Guidance Document was updated to reflect legislative changes to the CCUS Investment Tax Credit enacted through Bill C-15, and it now notes the earlier amendments to Chapter 5 on carbon capture processes with ineligible property. The page also now links to CRA guidance and a CCUS ITC contact page for follow-up questions.
Funding available
Up to 60% of project cost
Deadline
Unspecified
Location
Canada
Who can apply
Taxable Canadian corporations, including taxable Canadian corporations that are members of a partnership
See full eligibility
Overview
The CCUS Investment Tax Credit is a refundable tax credit for taxable Canadian corporations on eligible CCUS expenditures from January 1, 2022 to December 31, 2040. It supports projects that capture CO2 and transport it for storage or use in geological storage or concrete production in Canada or the United States.
Receipt of requests is now closed
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At a glance
Funding available
Financing goals
- Optimize production processes
- Reduce environmental footprint
Eligible Funding
- Up to 60% of project cost
Eligible candidates
Eligible Industries
- All industries
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
Availability timeline
2026
Periods: 1
Activities funded
- Capturing CO2 that would otherwise be released into the atmosphere
- Capturing CO2 directly from the ambient air
- Transporting captured carbon
- Storing captured carbon in dedicated geological storage
- Using captured carbon in producing concrete in Canada or the United States through a qualified concrete storage process
Documents Needed
- FEED study or FEED equivalent engineering study
- Pre-screening questionnaire
- Project plan form
- Detailed technical and engineering project documents necessary to conduct an initial project evaluation
- Form T2SCH78 and Form T2SCH31, if you are filing the credit with your T2 Corporation Income Tax Return
Official resources
Eligibility
Who is eligible?
- Taxable Canadian corporations, including taxable Canadian corporations that are members of a partnership
Eligible expenses
- Qualified carbon capture expenditures
- Qualified carbon transportation expenditures
- Qualified carbon storage expenditures
- Qualified carbon use expenditures
Ineligible Costs and Activities
- Expenditures eligible for inclusion in Classes 59 and 60 are not eligible for the CCUS ITC.
- Any other uses, including enhanced oil recovery, are ineligible uses.
- A project operated to service a unit for which the commissioning date was on or before April 7, 2022, and undertaken for the purpose of complying with emission standards that apply, or will apply, under the Reduction of Carbon Dioxide Emissions from Coal-fired Generation of Electricity Regulations.
How to apply
- Complete a FEED study.
- Take the pre-screening questionnaire.
- After successfully completing the questionnaire, register in NRCan's secure project plan submission portal.
- Complete the project plan form.
- Include the detailed technical and engineering project documents needed to conduct an initial project evaluation.
- Submit the project plan to NRCan before the project's first day of commercial operations, or by September 19, 2024 if the first day of commercial operations occurred before June 21, 2024.
Processing and Agreement
- NRCan reviews project plans and may request clarification or additional information and documentation if the submission is insufficient.
- After review, NRCan issues an initial project evaluation, and after a revised project plan is submitted, NRCan issues a revised project evaluation.
- The CRA, in consultation with NRCan, determines whether a submitted project plan is a single CCUS project or multiple CCUS projects.
- Taxpayers with an initial or revised project evaluation must submit an annual progress report to NRCan.
- Additional public reporting may be required, including knowledge sharing reports for qualified CCUS projects expected to incur $250 million or more of qualified CCUS expenditures and annual climate risk disclosure reports for projects expected to incur $20 million or more.
Additional information
- NRCan receives project plans and issues initial and revised project evaluations.
- The CRA, in consultation with NRCan, determines whether a submitted project plan is a single CCUS project or multiple CCUS projects.
Contacts
Frequently Asked Questions about the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) Program
What is the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)?
The CCUS Investment Tax Credit is a refundable tax credit for taxable Canadian corporations on eligible CCUS expenditures from January 1, 2022 to December 31, 2040. It supports projects that capture CO2 and transport it for storage or use in geological storage or concrete production in Canada or the United States.
How much funding can be received?
Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) Funds up to 60% of admissible expenses.
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 a taxable Canadian corporation that is a member of a partnership
Must have a qualified CCUS project with qualified CCUS expenditures incurred from January 1, 2022, to December 31, 2040
What expenses are eligible under Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)?
Capturing CO2 that would otherwise be released into the atmosphere
Capturing CO2 directly from the ambient air
Transporting captured carbon
Storing captured carbon in dedicated geological storage
Using captured carbon in producing concrete in Canada or the United States through a qualified concrete storage process
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) by email at itc_ccus-cii_cusc@nrcan-rncan.gc.ca or by phone at 1-855-825-3262.
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.
Is the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) a grant, loan, or tax credit?
Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC) is a Tax Credits