Closed
Source verified July 23, 2026
Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Refundable tax credit for carbon capture, use and storage
Latest source updateLast Update: July 19, 2026Latest change: The CCUS ITC guidance no longer shows the claims deadline extension section, and the who-can-claim page now more clearly states the labour-requirements condition tied to the reduced tax credit rate.View change
Latest source update
Last Update: July 19, 2026
Latest change: The CCUS ITC guidance no longer shows the claims deadline extension section, and the who-can-claim page now more clearly states the labour-requirements condition tied to the reduced tax credit rate.
CCUS ITC guidance and claim rules updated
The CCUS ITC main guidance page no longer shows the deadline extension section that previously described claim filing guidance through December 31, 2026. It also no longer displays the note about proposed legislative changes affecting how claims submitted after December 31, 2025 would be processed. On the who-can-claim page, the labour-requirements condition is now stated with an effective date of November 28, 2023, clarifying that claimants who elect and attest to meet the labour requirements can avoid the reduced tax credit rate. The NRCan technical guidance link also now points to a different URL.
Funding available
Up to 60% of project cost
Deadline
Closed
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.
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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
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
- Any other uses of captured carbon, including enhanced oil recovery, are ineligible uses.
- A project operated to service a unit whose commissioning date was on or before April 7, 2022, and undertaken to comply with emission standards 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