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Clean Hydrogen Investment Tax Credit (ITC)
Refundable tax credit for clean hydrogen projects
Last Update: April 9, 2026
Funding available
Varies by project
Timeline
- Open Date : November 28, 2023
- Closing date : December 31, 2034
Location
Canada
Overview
Refundable tax credit for qualified clean hydrogen projects in Canada. Supports clean hydrogen production, and where applicable clean ammonia production, with eligible property acquired from March 28, 2023 to December 31, 2034.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop strategic partnerships
- Increase production or service capacity
- Optimize production processes
Eligible Funding
- Varies by project
Timeline
- Open Date : November 28, 2023
- Closing date : December 31, 2034
Eligible candidates
Eligible Industries
- Manufacturing
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Production of clean hydrogen.
- Production of clean ammonia using clean hydrogen feedstock.
- Hydrogen production by electrolysis of water.
- Hydrogen production from eligible hydrocarbons, including with CCUS.
Documents Needed
- Clean Hydrogen ITC letter of authorization
- Partnership or joint venture documentation, if applicable
- CH ITC Property List
- Validation report from a qualified validation firm
- FEED or equivalent study and supporting project plan documents
Eligibility
Who is eligible?
- Taxable Canadian corporations.
- Taxable Canadian corporations that are members of a partnership.
- Partnerships involving taxable Canadian corporations.
Who is not eligible
- Non-taxable entities.
- Companies that do not have a qualified clean hydrogen project.
- Applicants without eligible clean hydrogen property available for use.
Eligible expenses
- Capital cost of eligible clean hydrogen property.
- Legal, accounting, and engineering fees to acquire the property.
- Site preparation, delivery, installation, and testing costs.
- Materials, labour, and overhead for property manufactured for own use.
Ineligible Costs and Activities
- Preliminary work such as permits, early design, feasibility studies, environmental assessments, and site clearing.
- Off-site transmission, transportation, distribution, or storage equipment.
- Hydrogen transport preparation equipment, including liquefaction and transport compression.
- Vehicles, refuelling equipment, buildings, construction equipment, furniture, and office equipment.
Eligible geographic areas
- Canada
Processing and Agreement
- NRCan reviews the submitted project plan for completeness and eligibility.
- CRA and NRCan determine whether a project is treated as one project or multiple projects.
- NRCan issues written confirmation before a claim is filed.
- After filing, CRA may review the claim and request additional information.
- If you disagree with CRA’s decision, objection and appeal rights apply.
Additional information
- The credit is administered by the Canada Revenue Agency and Natural Resources Canada.
- NRCan confirmations are issued through its secure portal.
- Information submitted to NRCan is shared with the CRA.
- Some project data may also be shared with ECCC and the Department of Finance.
Contacts
Frequently Asked Questions about the Clean Hydrogen Investment Tax Credit (ITC) Program
Here are answers to the most common questions about the Clean Hydrogen 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 Clean Hydrogen Investment Tax Credit (ITC)?
Refundable tax credit for qualified clean hydrogen projects in Canada. Supports clean hydrogen production, and where applicable clean ammonia production, with eligible property acquired from March 28, 2023 to December 31, 2034.
What is the deadline to apply?
The application deadline for this grant program is **December 31, 2034**. Applicants must submit their complete application before this date to be considered for funding.
Who is eligible for the Clean Hydrogen Investment Tax Credit (ITC) program?
To be eligible for the Clean Hydrogen Investment Tax Credit (ITC) program, you must:
Taxable Canadian corporation
Qualified clean hydrogen project
Eligible property available for use
What expenses are eligible under Clean Hydrogen Investment Tax Credit (ITC)?
Production of clean hydrogen.
Production of clean ammonia using clean hydrogen feedstock.
Hydrogen production by electrolysis of water.
Hydrogen production from eligible hydrocarbons, including with CCUS.
Who can I contact for more information about the Clean Hydrogen Investment Tax Credit (ITC)?
You can contact Canada Revenue Agency (CRA) by email at itc_cleanh2-cii_h2propre@nrcan-rncan.gc.ca or by phone at 1-855-825-3262.
Where is the Clean Hydrogen Investment Tax Credit (ITC) available?
The Clean Hydrogen Investment Tax Credit (ITC) program is available across Canada.
Is the Clean Hydrogen Investment Tax Credit (ITC) a grant, loan, or tax credit?
Clean Hydrogen Investment Tax Credit (ITC) is a Tax Credits