How much funding can be received?

Funds up to 30% of admissible expenses.

What is the deadline to apply?

The deadline to apply is 2034-12-31T23:59:59Z.

Who are the financial supporters of the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)?

Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) is funded by Canada Revenue Agency (CRA), Natural Resources Canada (NRCan)

Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)

Q: What are Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)'s eligibility criterias?

The applicant must be a taxable Canadian corporation, including those that are members of a partnership. Applicants can claim one type of ITC for clean economy per asset, except for certain projects with different types of eligible properties. Leased properties must meet additional leasing requirements if rented to another entity.

grant_single|update April 18, 2025

Canada

Incentivize Canadian companies to invest in clean technology

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grant_single|deadlines

grant_single|openingDate January 1, 2024
grant_single|closingDate December 31, 2034

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Tax Credits

grant_single|eligibleIndustries

Mining, quarrying, and oil and gas extraction
Manufacturing

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Canada Revenue Agency (CRA)
Natural Resources Canada (NRCan)

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The Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) is a refundable tax credit aimed at encouraging capital investment in clean technology manufacturing, processing, and critical mineral extraction and processing in Canada from January 1, 2024, to December 31, 2034. Eligible activities include manufacturing and processing that utilize specific machinery and equipment, as well as the extraction and processing of critical minerals. The credit covers 30% of capital costs for qualifying assets, with phased reductions starting in 2032.

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The investment tax credit for the manufacture of clean technologies (FTP) offers a refundable tax credit equivalent to 30% of the capital cost of eligible property.
The credit rate decreases to 20% in 2032, 10% in 2033, and then to 5% in 2034.

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Manufacturing or processing of clean technology products.
Extraction and processing of critical minerals.

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The applicant must be a Canadian corporation subject to tax, including a corporation that is a member of a partnership.
The project must involve capital investment in clean technology manufacturing and processing, or in the extraction and processing of critical minerals in Canada.
The assets acquired must be new, situated and intended for exclusive use in Canada, and must not have been used or acquired for other purposes prior to acquisition by the applicant.
Eligible property must fall within specific categories, such as machinery and equipment for manufacturing or processing, certain tangible property attached to buildings or structures used in manufacturing or processing, equipment for extraction and processing of minerals, specialized tooling, or non-road vehicles and automotive equipment designed for use in plants or mining sites.
If the eligible property is leased to another entity, that entity must be a Canadian corporation subject to tax, or a partnership where all members are such corporations, and the leasing must be in the normal course of business.
The property must be used at least 90% for eligible clean technology manufacturing activities or eligible mining production of specified materials.

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Canadian corporations subject to income tax
Canadian corporations that are members of a partnership
Companies involved in clean technology manufacturing or processing
Companies involved in critical mineral extraction and processing

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Capital cost of acquiring eligible property, including:
Legal, accounting, engineering, or other fees incurred to acquire the property
Site preparation, delivery, installation, and testing costs or other costs to bring the property into service
For self-constructed property: material, labour, and overhead costs reasonably attributable to the property (excluding any notional profit)

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Determine Eligibility

Ensure your corporation is a Canadian taxable entity.
Verify that your capital investments qualify under the FTP-related eligible activities.
Check that your assets meet the specified criteria for location, use, and inclusion in acceptable CCA categories.

Calculate the Tax Credit

Determine the capital cost of the eligible assets by including all acquisition and setup costs and subtracting any relevant government assistance.
Apply the appropriate ITC rate (30% for assets acquired from 2024 to 2031, 20% for 2032, 10% for 2033, and 5% for 2034) to the capital cost of the eligible assets.

Prepare the Corporate Tax Return

Ensure all calculations regarding the CTM ITC are accurate and ready to be reported.
Include the ITC claim in your corporate income tax return filing.

Submit the Tax Return

File your corporate income tax return with the Canada Revenue Agency, ensuring it is complete and accurate.
Ensure that your tax return is filed by the deadline to avoid penalties.

Compliance and Follow-Up

Be prepared for CRA audit and compliance checks by having detailed records and documentation to support your ITC claim.
Ensure all supporting documents are organized and retain them for a minimum of six years following your claim.

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The Clean Technology Manufacturing (CTM) Investment Tax Credit is administered by the Canada Revenue Agency (CRA), which provides oversight, audit, and compliance activities for claimants.
Legislative amendments affecting Clean Economy ITCs have been proposed and, if enacted, may apply retroactively; applicants should consult the latest updates from the federal government to ensure compliance with current and pending requirements.
The CTM ITC is available for eligible goods acquired and put into service between January 1, 2024, and December 31, 2034.
The CTM ITC rate decreases over time: 30% through 2031, 20% in 2032, 10% in 2033, and 5% in 2034.
Only one Clean Economy ITC can typically be claimed for the same property; however, multiple ITCs may be claimed for a single project if the project includes different types of eligible assets.
If part of the capital cost is unpaid 180 days after the end of the corporation’s taxation year in which the asset is put into service, that portion is excluded from the capital cost calculation until payment is made.
Government or non-government assistance received (or expected to be received) related to an eligible asset must be deducted from the capital cost for ITC calculation purposes; if such assistance is later repaid or not received, it may be added back.