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Source verified August 4, 2026
Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)
Supports clean technology manufacturing investment in Canada
Latest source updateLast Update: July 5, 2026Latest change: The CTM ITC pages now show updated qualifying-property rules, a shortened availability window to December 31, 2031, and new post-claim reporting requirements.View change
Latest source update
Last Update: July 5, 2026
Latest change: The CTM ITC pages now show updated qualifying-property rules, a shortened availability window to December 31, 2031, and new post-claim reporting requirements.
CTM ITC eligibility and claim rules updated
The CTM ITC guidance now shows a shorter program window on the main overview: eligible property must be acquired from January 1, 2024 and become available for use on or before December 31, 2031, instead of December 31, 2034. The overview also now says the credit applies to CTM property in Canada and expands the critical-mineral context from 6 to 11 key critical minerals. The qualifying-property page was substantially rewritten with new and refined eligibility rules, including expanded property categories, mine/well/tailing pond use, a required certification from an independent engineer or geoscientist, and filing the election with the claim. The after-claim guidance was also updated with new recapture and transfer-reporting instructions, including a letter with specific transfer details until the prescribed form is available.
Funding available
Up to 30% of project cost
Deadline
Open continuously
Location
Canada
Overview
The Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) is a refundable tax credit of up to 30% for taxable Canadian corporations investing in eligible CTM property in Canada for clean technology manufacturing and critical mineral extraction and processing. Eligible property includes machinery and equipment, specialized tooling, and non-road vehicles.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Optimize production processes
- Reduce environmental footprint
Eligible Funding
- Up to 30% 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
- Activities described in paragraph (a) or (c) of the definition of qualified zero-emission technology manufacturing activities in section 5202 of the Income Tax Regulations.
- Activities described in paragraph (a) or (b) of the definition of qualifying mineral activity when the property is used to produce primarily qualifying materials, meaning 50% or more of the value of all commercial outputs.
- Activities described in paragraphs (c) to (f) of the definition of qualifying mineral activity when the property is used to produce all or substantially all qualifying materials, meaning 90% or more of the value of all commercial outputs.
Documents Needed
- Form T2SCH76, Schedule 76, Clean Technology Manufacturing Investment Tax Credit
- Form T2SCH31, Schedule 31, Investment Tax Credit - Corporations
- T5013 slip, Statement of Partnership Income, for allocated CTM ITC amounts from a partnership
- Form T5013SCH76, Schedule 76, Clean Technology Manufacturing Investment Tax Credit, for partnerships allocating the credit to members
- A certification from an independent engineer or geoscientist in the prescribed form for certain qualifying mineral activities
Official resources
Program guide
Application form
Supporting document
Eligibility
Who is eligible?
- Taxable Canadian corporations
- Taxable Canadian corporations that are members of a partnership
Eligible expenses
- 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, excluding any profit which might have been earned had the asset been sold
Ineligible Costs and Activities
- Property used in the production of battery cells or modules if the production benefited, or can reasonably be expected to benefit, from support under a Government of Canada contribution agreement referred to in section 7300 of the Income Tax Regulations
Eligible geographic areas
- Canada
How to apply
- Claim the credit in the tax year in which the property becomes available for use, provided that all relevant requirements are met.
- File the claim with your T2 Corporation Income Tax Return, using the same method you use to file your taxes.
- Complete Form T2SCH76, Schedule 76, Clean Technology Manufacturing Investment Tax Credit.
- Complete Form T2SCH31, Schedule 31, Investment Tax Credit - Corporations, enter the CTM ITC claim at line 170, and include that amount in the total on line 780 of your T2 Corporation Income Tax Return.
- If you are a corporation that is a member of a partnership, include any allocated CTM ITC amounts, usually reported on a T5013 slip, Statement of Partnership Income.
Processing and Agreement
- If your claim is accepted as filed, you will be notified on your notice of assessment or reassessment.
- After the claim is submitted, the CRA reviews it to determine the eligibility of the expenditures and then pays the credit amount, or uses the credit to reduce tax owing.
- The CRA may ask for additional information about your project or expenses and may request documents to verify your expenses.
- After reviewing the additional information, the CRA will issue a written summary of its findings; if changes are required, you must respond within 30 days before the changes are confirmed and your return is assessed or reassessed.
- Recapture may apply if CTM property is converted to a non-CTM use, exported from Canada, or disposed of in the tax year or in one of the previous 10 calendar years; a taxable Canadian corporation may defer recapture on a transfer to a related taxable Canadian corporation that continues to use the property in a CTM use, and recapture or transfer information must be reported by the applicable filing due date.
Additional information
- The Clean Technology Manufacturing Investment Tax Credit is administered by the Canada Revenue Agency.
- Labour requirements do not apply to the CTM ITC.
- In general, only one Clean Economy ITC can be claimed for the same property, but multiple Clean Economy ITCs can be claimed for the same project if it includes different types of eligible property.
- The CTM ITC can also be claimed with investment tax credits set out in section 127 of the Income Tax Act, such as the Atlantic Investment Tax Credit, for the same property.
Contacts
Frequently Asked Questions about the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) Program
What is the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)?
The Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) is a refundable tax credit of up to 30% for taxable Canadian corporations investing in eligible CTM property in Canada for clean technology manufacturing and critical mineral extraction and processing. Eligible property includes machinery and equipment, specialized tooling, and non-road vehicles.
How much funding can be received?
Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) Funds up to 30% of admissible expenses.
Who is eligible for the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program?
To be eligible for the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program, you must:
The applicant must be a taxable Canadian corporation, including a taxable Canadian corporation that is a member of a partnership.
What expenses are eligible under Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)?
Activities described in paragraph (a) or (c) of the definition of qualified zero-emission technology manufacturing activities in section 5202 of the Income Tax Regulations.
Activities described in paragraph (a) or (b) of the definition of qualifying mineral activity when the property is used to produce primarily qualifying materials, meaning 50% or more of the value of all commercial outputs.
Activities described in paragraphs (c) to (f) of the definition of qualifying mineral activity when the property is used to produce all or substantially all qualifying materials, meaning 90% or more of the value of all commercial outputs.
Who can I contact for more information about the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)?
You can contact Canada Revenue Agency (CRA) by email at cleaneconomycpb-economiepropredgpo@cra-arc.gc.ca or by phone at 1-855-825-3262.
Where is the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) available?
The Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program is available across Canada.
Is the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) a grant, loan, or tax credit?
Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) is a Tax Credits