Clean Technology (CT) Investment Tax Credit (ITC)
Canada
Offer up to 30% refundable credit for capital investments in new clean technologies in Canada
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateMarch 28, 2023
- grant_single|closingDateDecember 31, 2033
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Canada Revenue Agency (CRA)
- Natural Resources Canada (NRCan)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Clean Technology Investment Tax Credit (CII) is a refundable tax credit that offers up to 30% for capital invested in adopting and operating new clean technology assets in Canada between March 28, 2023, and December 31, 2034. Eligible activities include investments in equipment for solar, wind, and hydroelectric power generation, energy storage, geothermal systems, and zero-emission non-road vehicles.
grant_single_labels|terms_and_conditions
This grant provides tax credit incentives to encourage investment in clean technology assets, allowing organizations to enhance their capital expenditure efficiency. The modalities outlined determine the percentage of tax credit based on the acquisition date and usage year of the eligible assets.
- The Clean Technology Investment Tax Credit (CT ITC) offers a refundable tax credit of up to 30% for clean technology assets acquired and available for use between March 28, 2023, and December 31, 2033.
- For assets that are acquired and become available for use in 2034, the tax credit rate is reduced to 15%.
- This credit is applicable only until the end of 2034, after which it will no longer be available.
grant_single_labels|admissibility
Eligibility for the Clean Technology Investment Tax Credit (CII) is determined by specific requirements related to the type of entity applying and their involvement with clean technology assets.
- The applicant must be a taxable Canadian corporation, including those that are a member of a partnership.
- The applicant can be a mutual fund trust that qualifies as a real estate investment trust, including such trusts that are members of a partnership.
- Applicants must ensure compliance with other labor-related requirements to avoid reduced tax credit rates.
grant_eligibility_criteria|who_can_apply
To apply for the CII for clean technologies, you must be:1. A taxable Canadian corporation (including a taxable Canadian corporation that is a member of a partnership).2. An investment trust mutual fund that is a real estate investment trust (including such a trust that is a member of a partnership).Additionally, you must:- Opt to meet labor requirements to avoid the reduced tax credit rate.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain entities based on their eligibility as outlined for companies or trusts that do not qualify under the specified criteria. The focus is to ensure compliance with the definitions of taxable Canadian corporations or qualifying mutual fund trusts.
- Non-Canadian corporations or entities without taxable status in Canada.
- Entities that are not mutual fund trusts structured as real estate investment trusts.
- Non-taxable organizations, including non-profits or government bodies.
grant_eligibility_criteria|zone
This grant is available throughout Canada for companies investing in clean technologies. The eligibility is defined by the type of corporation or trust applying for the grant, rather than specific geographical locations within Canada.
- All provinces and territories in Canada.
grant_single_labels|register
Here are the steps to apply for the Crédit d'impôt à l'investissement (CII) pour les technologies propres:
- Step 1: Verify Eligibility
- Ensure your organization is a taxable Canadian corporation or a mutual fund trust that qualifies as a real estate investment trust.
- Confirm that the investments are in eligible clean technology assets.
- Step 2: Gather Required Documentation
- Collect necessary financial records and details of capital investments made in clean technology.
- Prepare a summary of the clean technology investments and the CII claim calculation.
- Step 3: Prepare the Tax Return
- Calculate the CII for clean technologies to include in your corporate or trust income tax return (T2 or T3).
- Ensure to follow guidelines provided by the CRA for calculating and claiming the CII.
- Step 4: Submission of the Tax Return
- Submit your corporate or trust tax return by the due date including the CII claim.
- Attach additional documents as required by the CRA to substantiate the CII claim.
- Step 5: Address Labour Requirements
- Choose to meet labour requirements related to prevailing wages and apprenticeships to qualify for the regular credit rate.
- Understand the implications and responsibilities related to labour requirement compliance.
- Step 6: Await CRA Processing
- After submission, wait for the CRA to process the tax return and assess the CII claim.
- Be prepared to provide additional information if requested by the CRA.
grant_single_labels|otherInfo
The Investment Tax Credit (ITC) for Clean Technologies supports the adoption and use of specified clean technology assets in Canada from March 28, 2023, to December 31, 2034, for eligible businesses.
- Rate of the ITC can be up to 30% for assets available from March 28, 2023, to December 31, 2033.
- Rate of the ITC drops to 15% for assets available in 2034.
- Available to taxable Canadian corporations and certain types of trusts.
- Cannot be combined with other specific ITCs for the same asset, but multiple ITCs can be applied to the same project for different assets.
- Additional technical information and support can be obtained from Natural Resources Canada (NRCan).
