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Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Financial support for carbon mitigation projects
Last Update: June 10, 2026
Funding available
Up to 10% of project cost
Timeline
- Receipt of requests is now closed
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.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Optimize production processes
- Reduce environmental footprint
Eligible Funding
- Up to 10% of project cost
Timeline
- Receipt of requests is now closed
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.
Documents Needed
- Project plan form.
- Pre-screening questionnaire.
- FEED study or equivalent engineering study.
- Detailed technical and engineering project documents.
Official resources
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
Selection criteria
- 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.
How to apply
1
Conduct the Initial Environmental Impact Certification (EIIC)
An obligatory step to be performed before submitting the project plan.
2
Complete the Prescreening Questionnaire
Answer the questionnaire to determine your eligibility and that of your project.
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.
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.
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.
Processing and Agreement
- 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.
Additional information
- 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.
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 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.
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.
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