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Source verified September 18, 2026
Clean Hydrogen Investment Tax Credit (ITC)
Refundable tax credit for clean hydrogen projects
Latest source updateLast Update: September 18, 2026Latest change: The Fuel Life Cycle Assessment Model page now says the next formal publication is planned for 2028, with a September 2026 model-change summary now listed.View change
Latest source update
Last Update: September 18, 2026
Latest change: The Fuel Life Cycle Assessment Model page now says the next formal publication is planned for 2028, with a September 2026 model-change summary now listed.
Fuel LCA model publication timeline updated
The Fuel Life Cycle Assessment Model page now plans the next formal publication for 2028 instead of fall 2026. It also now points to a September 2026 summary of model changes and updates the pre-publication links to the 2028 version. Because Clean Hydrogen Investment Tax Credit applicants must use this model to provide expected and actual carbon intensity, the publication timing is relevant grant guidance for project submissions.
Funding available
Up to 40% of project cost
Deadline
Open continuously
Location
Canada
Who can apply
Be a taxable Canadian corporation, including a taxable Canadian corporation that is a member of a partnership.
See full eligibility
Overview
The Clean Hydrogen Investment Tax Credit is a refundable tax credit for taxable Canadian corporations with qualified clean hydrogen projects in Canada. It applies to eligible clean hydrogen property acquired from March 28, 2023 to December 31, 2034 and supports clean hydrogen and, where applicable, clean ammonia production.
/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
- Up to 40% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
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
Availability timeline
2026
Periods: 1
Activities funded
- Production of clean hydrogen with a carbon intensity of less than 4 kilograms of carbon dioxide equivalent (CO2e) per kilogram of hydrogen produced.
- Production of clean ammonia that uses a feedstock of clean hydrogen produced by the qualified project.
Documents Needed
- Front-End Engineering Design (FEED) study or equivalent engineering study
- Validation report prepared by a qualified validation firm that supports the expected CI contained in the plan
- Form T2SCH74, Schedule 74, Clean Hydrogen Investment Tax Credit
- Form T5013SCH74, Clean Hydrogen Investment Tax Credit
Official resources
Program guide
Application form
Supporting document
Eligibility
Who is eligible?
- Be a taxable Canadian corporation, including a taxable Canadian corporation that is a member of a partnership.
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
Selection criteria
- The analysis and determination are made on a case-by-case basis.
- Hydrogen may be produced by distinct eligible pathways, and the CRA will generally consider the operations for each eligible pathway to be a separate clean hydrogen project.
- If the construction of eligible clean hydrogen properties occurs in phases, the CRA may consider a phase to be a separate clean hydrogen project.
- If particular eligible clean hydrogen properties start producing hydrogen before other eligible clean hydrogen properties start producing hydrogen, and there is no interdependence in the operation of such properties, this could indicate multiple clean hydrogen projects.
- Where eligible clean hydrogen properties are owned by different owners, this could indicate that there are multiple clean hydrogen projects.
How to apply
- Take the pre-screening questionnaire to verify some elements of your basic eligibility as a taxpayer and the basic eligibility of the project plan itself.
- Create an account on NRCan’s portal.
- If you are a member of a partnership, a designated partner should submit the clean hydrogen project plan on behalf of the partnership.
- Fill out the application form and upload documents using NRCan’s submission portal.
Processing and Agreement
- NRCan is responsible for receiving project plans and issuing confirmations for project plans and revised project plans.
- NRCan carries out a preliminary evaluation of the project plan submission to ensure completeness and that certain eligibility criteria have been met.
- The CRA, in consultation with NRCan, determines whether a clean hydrogen project constitutes one project or multiple projects, and the CRA will inform you of the determination decision.
- Once you receive a project determination from the CRA, you must acknowledge receipt of the project determination letter through NRCan’s secure portal, and NRCan’s confirmation of a qualified clean hydrogen project can only follow once this is done.
- If your claim is accepted as filed, you will be notified on your notice of assessment or reassessment; some claims may be selected for further review, the CRA may request an on-site or virtual meeting, after review the CRA will provide a written summary of the review findings, and if you claimed the Clean Hydrogen ITC for a qualified clean hydrogen project, you must file a compliance report with the CRA and NRCan within 180 days after the end of each operating year.
Additional information
- The Clean Hydrogen ITC is administered by the Canada Revenue Agency (CRA) and Natural Resources Canada (NRCan).
- All information submitted to NRCan in relation to the Clean Hydrogen ITC will be shared with the CRA.
- Select clean hydrogen project plan information may be shared with Environment and Climate Change Canada (ECCC) and the Department of Finance for administrative purposes or to evaluate or formulate related policies and guidelines.
Contacts
Frequently Asked Questions about the Clean Hydrogen Investment Tax Credit (ITC) Program
What is the Clean Hydrogen Investment Tax Credit (ITC)?
The Clean Hydrogen Investment Tax Credit is a refundable tax credit for taxable Canadian corporations with qualified clean hydrogen projects in Canada. It applies to eligible clean hydrogen property acquired from March 28, 2023 to December 31, 2034 and supports clean hydrogen and, where applicable, clean ammonia production.
How much funding can be received?
Clean Hydrogen Investment Tax Credit (ITC) Funds up to 40% of admissible expenses.
What is the deadline to apply?
The program is accepting continuous intake
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:
Be a taxable Canadian corporation, including a taxable Canadian corporation that is a member of a partnership.
Have a qualified clean hydrogen project and eligible clean hydrogen property that becomes available for use in the year.
What expenses are eligible under Clean Hydrogen Investment Tax Credit (ITC)?
Production of clean hydrogen with a carbon intensity of less than 4 kilograms of carbon dioxide equivalent (CO2e) per kilogram of hydrogen produced.
Production of clean ammonia that uses a feedstock of clean hydrogen produced by the qualified project.
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.