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Source verified July 10, 2026
Clean Hydrogen Investment Tax Credit (ITC)
Refundable tax credit for clean hydrogen projects
Latest source updateLast Update: June 29, 2026Latest change: Clean Hydrogen ITC resource access has expanded, with a live materials home page now visible and related guidance pages showing minor eligibility and process clarifications.View change
Latest source update
Last Update: June 29, 2026
Latest change: Clean Hydrogen ITC resource access has expanded, with a live materials home page now visible and related guidance pages showing minor eligibility and process clarifications.
Clean Hydrogen ITC materials and guidance updated
A live Clean Hydrogen Investment Tax Credit materials home page is now visible where a 404 previously appeared, and it shows new resource folders for related hydrogen ITC materials. This materially improves access to scope-specific guidance and linked resources for the program. Several supporting pages also changed: the project-qualification guidance shows minor eligibility wording clarifications, the labour-requirements page adds a Clean Electricity ITC rates link, the clean economy webinars page removes three upcoming sessions, and the T2 Schedule 31 download page now shows 2026 form versions. The labour requirements page still keeps the same 10 percentage point reduced-rate rule for taxpayers who do not elect to meet labour requirements, and the 2023 and later tax years wording is now visible on the updated PDF title.
Funding available
Up to 40% of project cost
Deadline
Open continuously
Location
Canada
Who can apply
Taxable Canadian corporations, including taxable Canadian corporations that are members of a partnership.
See full eligibility
Overview
The Clean Hydrogen Investment Tax Credit supports taxable Canadian corporations with qualified clean hydrogen projects. It applies to eligible clean hydrogen property acquired from March 28, 2023 to December 31, 2034 and supports clean hydrogen production, 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
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?
- Taxable Canadian corporations, including taxable Canadian corporations that are members 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.
- The CRA will generally consider the operations for each distinct eligible pathway to be a separate clean hydrogen project.
- If construction occurs in phases, the CRA may consider a phase to be a separate clean hydrogen project.
How to apply
- Take NRCan’s 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 receives project plans and revised project plans and issues confirmations for them.
- 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.
- 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, and the CRA may request an on-site or virtual meeting and supporting documents to verify expenses and confirm requirements, including the labour requirements.
- After review, the CRA provides 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 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
What is the Clean Hydrogen Investment Tax Credit (ITC)?
The Clean Hydrogen Investment Tax Credit supports taxable Canadian corporations with qualified clean hydrogen projects. It applies to eligible clean hydrogen property acquired from March 28, 2023 to December 31, 2034 and supports clean hydrogen production, 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.
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 confirmed by NRCan
Eligible clean hydrogen property 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.
Is the Clean Hydrogen Investment Tax Credit (ITC) a grant, loan, or tax credit?
Clean Hydrogen Investment Tax Credit (ITC) is a Tax Credits