Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)

• Project plan form.
• Pre-screening questionnaire.
• FEED study or equivalent engineering study.
• Detailed technical and engineering project documents.

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

• Submission of a detailed project plan as required by Natural Resources Canada (RNCan).
• Completion of the initial project evaluation (including an EIIC and pre-selection questionnaire).
• Provision of sufficient technical documentation to demonstrate that assets qualify as eligible carbon capture, utilization, and storage (CCUS) equipment.
• Response to requests for additional information or documentation if current submissions are deemed insufficient for evaluation.

• Step 1: Complete the pre-screening questionnaire
  • Answer the questionnaire before registering in NRCan's secure portal.
• Step 2: Register and prepare the project plan
  • Register in NRCan's secure project plan submission portal.
  • Complete the project plan form and gather the required technical and engineering documents.
• Step 3: Submit to NRCan
  • Submit the project plan to NRCan through the secure portal.
  • Submit before commercial operations begin, or by the specified deadline if applicable.
• Step 4: Receive evaluation
  • NRCan issues an initial project evaluation before you can claim the credit.
  • NRCan may request additional information or a revised project plan if needed.
• Step 5: Claim the credit
  • Claim the CCUS ITC with your corporate income tax return.

• NRCan reviews the project plan and issues an initial or revised project evaluation.
• NRCan may request additional information or documents during review.
• The CRA determines, with NRCan, whether a CCUS project is one project or multiple projects.
• Project changes deemed material may require a revised project plan.

• NRCan handles technical review and project evaluations.
• Annual progress reports are required after an initial or revised project evaluation.
• Significant project changes may require a revised project plan.