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Source verified August 12, 2026
Clean Technology (CT) Investment Tax Credit (ITC)
Refundable tax credit for new clean technology property
Latest source updateLast Update: August 3, 2026Latest change: A new technical guide for wind energy conversion systems now defines eligible and ineligible properties for the Clean Technology ITC.View change
Latest source update
Last Update: August 3, 2026
Latest change: A new technical guide for wind energy conversion systems now defines eligible and ineligible properties for the Clean Technology ITC.
Wind energy guide published for CT ITC
A new technical guide for wind energy conversion systems is now available for the Clean Technology Investment Tax Credit. It sets out eligible and ineligible properties, qualifying requirements, and costs typically included in the capital cost of this type of clean technology property. The guide states that it is the first edition and reflects the Income Tax Act and Income Tax Regulations current as of September 29, 2025.
Funding available
Up to 30% 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 Technology Investment Tax Credit (ITC) is a refundable tax credit of up to 30% for taxable Canadian corporations and mutual fund trusts that are real estate investment trusts investing in new clean technology property in Canada through 2034. Eligible property includes solar or wind electricity equipment, electrical energy storage, and air-source heat pumps.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Implement environmental initiatives
- Reduce environmental footprint
Eligible Funding
- Up to 30% of project cost
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
- Investments in equipment used to generate electricity from solar, wind, and water energy.
- Investments in fixed location electrical energy storage property or pumped hydroelectric energy storage property, excluding equipment that uses any fossil fuel in operation.
- Investments in active solar heating equipment, air-source heat pumps, and ground-source heat pumps.
- Investments in non-road zero-emission vehicles and related charging and refueling equipment used primarily for such vehicles.
- Investments in geothermal equipment, concentrated solar energy equipment, small nuclear energy property, waste biomass generation equipment acquired after November 20, 2023, and eligible refurbishment property.
Documents Needed
- Form T2SCH75, Clean Technology Investment Tax Credit, for corporations claiming the credit.
- Form T2SCH31, Schedule 31, Investment Tax Credit - Corporations, for corporations claiming the credit.
- Form T5013SCH75, Schedule 75, Clean Technology Investment Tax Credit, for partnerships.
- T5013 slip, Statement of Partnership Income, for each partnership member receiving an allocated share.
- Form T1098, Clean Technology Investment Tax Credit, for mutual fund trusts that are a real estate investment trust.
Official resources
Program guide
Application form
Eligibility
Who is eligible?
- Taxable Canadian corporations, including taxable Canadian corporations that are members of a partnership.
- Mutual fund trusts that are real estate investment trusts, including such trusts that are members of a partnership.
Who is not eligible
- Trusts other than mutual fund trusts that are a real estate investment trust (MFT-REIT) cannot claim the credit.
Eligible expenses
- The cost of acquiring the property.
- Legal, accounting, engineering or other fees incurred to acquire the property.
- Site preparation, delivery, installation, testing, or other costs incurred to put the property into service.
- For property manufactured for your own use, material, labour and overhead costs reasonably attributable to the property, but not any profit which might have been earned had the asset been sold.
Ineligible Costs and Activities
- Expenditures incurred for preliminary work activity.
- Obtaining a right of access or right of way to a project site, or obtaining permits or regulatory approvals, including conducting environmental assessments.
- Front-end design or engineering work or process engineering work for project development, including site data collection and analysis, energy, mass, water or air balance calculations, process design simulations and analysis, optimum process design selection, and feasibility or prefeasibility studies.
- Clearing or excavating land, except excavation directly related to the installation of clean technology property, and constructing a temporary access road to the project site.
- Drilling of a well.
Eligible geographic areas
- Canada.
- The exclusive economic zone of Canada for property described in subparagraph (d)(v) or (xiv) of Class 43.1 in Schedule II to the Income Tax Regulations.
How to apply
- If you want the regular credit rate, elect to meet the labour requirements and attest that you met them when filing your ITC claim.
- Claim the credit on either your corporate tax return or trust tax return.
- If you are a corporation, complete Form T2SCH75 and Form T2SCH31 and file them with your T2 Corporation Income Tax Return.
- If you are a partnership, complete Form T5013SCH75, provide a copy to members of the partnership, and provide each member a T5013 slip.
- If you are a mutual fund trust that is a real estate investment trust, complete Form T1098, claim the amount on Field 881 (line 55), and file it with your T3 Trust Income Tax and Information Return.
- Complete the prescribed form electronically and file it using the same method you use to file your T2 or T3 return by the filing due date.
Processing and Agreement
- 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 further information about the project or expenditures being claimed.
- The CRA may request an on-site or virtual meeting and supporting documents to verify expenses and confirm whether the various requirements, including the labour requirements, were met.
- After reviewing the documents provided, the CRA will issue a written summary of the review findings.
- If the CRA determines that changes are needed, you will have 30 days to respond before the changes are confirmed and your return is assessed or reassessed.
Additional information
- The Canada Revenue Agency (CRA) provides the ability to claim the credit on a corporate income tax return or trust return, while Natural Resources Canada (NRCan) provides engineering and scientific guidance on clean technology property.
- You may claim both the Clean Technology ITC and the Atlantic investment tax credit.
- You can generally claim only one Clean Economy ITC for the same eligible property, but you may claim multiple Clean Economy ITCs for the same project if it includes different types of eligible property.
- Additional tax incentives may be available for clean technology property that is also described in Class 43.1 and 43.2, including accelerated capital cost allowance.
Contacts
Frequently Asked Questions about the Clean Technology (CT) Investment Tax Credit (ITC) Program
What is the Clean Technology (CT) Investment Tax Credit (ITC)?
The Clean Technology Investment Tax Credit (ITC) is a refundable tax credit of up to 30% for taxable Canadian corporations and mutual fund trusts that are real estate investment trusts investing in new clean technology property in Canada through 2034. Eligible property includes solar or wind electricity equipment, electrical energy storage, and air-source heat pumps.
How much funding can be received?
Clean Technology (CT) Investment Tax Credit (ITC) Funds up to 30% of admissible expenses.
Who is eligible for the Clean Technology (CT) Investment Tax Credit (ITC) program?
To be eligible for the Clean Technology (CT) Investment Tax Credit (ITC) program, you must:
The claimant must be a taxable Canadian corporation, including one that is a member of a partnership.
The claimant may also be a mutual fund trust that is a real estate investment trust, including one that is a member of a partnership.
What expenses are eligible under Clean Technology (CT) Investment Tax Credit (ITC)?
Investments in equipment used to generate electricity from solar, wind, and water energy.
Investments in fixed location electrical energy storage property or pumped hydroelectric energy storage property, excluding equipment that uses any fossil fuel in operation.
Investments in active solar heating equipment, air-source heat pumps, and ground-source heat pumps.
Investments in non-road zero-emission vehicles and related charging and refueling equipment used primarily for such vehicles.
Investments in geothermal equipment, concentrated solar energy equipment, small nuclear energy property, waste biomass generation equipment acquired after November 20, 2023, and eligible refurbishment property.
Who can I contact for more information about the Clean Technology (CT) Investment Tax Credit (ITC)?
You can contact Natural Resources Canada (NRCan) by email at cleaneconomycpb-economiepropredgpo@cra-arc.gc.ca or by phone at 1-855-825-3262.
Where is the Clean Technology (CT) Investment Tax Credit (ITC) available?
The Clean Technology (CT) Investment Tax Credit (ITC) program is available across Canada.
Is the Clean Technology (CT) Investment Tax Credit (ITC) a grant, loan, or tax credit?
Clean Technology (CT) Investment Tax Credit (ITC) is a Tax Credits