Clean Hydrogen Investment Tax Credit (ITC)

Who is eligible?

Eligible expenses

This tax credit supports projects focusing on the production of clean hydrogen with low carbon intensity using eligible methods and equipment. The benefits extend to various equipment and activities crucial for producing clean hydrogen or ammonia.

• Production of hydrogen through electrolysis of water with necessary equipment such as electrolyzers and purifiers.
• Hydrogen production from eligible hydrocarbons utilizing reformers and related apparatus.
• Manufacture of clean ammonia using hydrogen as feedstock, involving heat recovery and conversion equipment.
• Supportive equipment used for integrated processes across hydrogen and ammonia production systems.
• Dual-use equipment for electricity and heating specifically tailored for hydrogen and ammonia applications.

Eligible geographic areas

This grant is available to Canadian companies that acquire and deploy eligible assets for clean hydrogen production. It covers projects situated within Canada in alignment with federal funding directives.

• All Canadian provinces and territories.

The grant provides critical information regarding eligibility, equipment, and capital cost determination for producing clean hydrogen.

• Eligible projects must be confirmed in writing by RNCan.
• The credit applies to assets acquired from March 28, 2023, to December 31, 2034.
• Only Canadian taxable corporations can apply.
• Costs associated with legal, accounting, engineering, and site preparation are included in capital costs.
• Plans of projects must be submitted to and confirmed by RNCan.
• Equipment used for transmission, transport, off-site distribution, or storage of hydrogen is excluded from eligibility.
• Submissions for the project plan should be done through the RNCan portal in the specific form and manner indicated.