Boost Your Business Growth with Tax Credits
The Canadian government allocates billions of dollars annually in tax credits to support Research & Development (R&D) across 65+ industries. Whether you’re new to tax credits or already claiming, SRA can help you maximize your benefits.
Understanding Clean Economy Investment Tax Credits
From 2024 to 2035, the Canadian government has allocated $93 billion in federal support to accelerate the transition to a sustainable economy. These tax credits provide businesses with financial incentives to adopt clean technology and contribute to Canada’s net-zero emissions goal.
Overview of Clean Economy Investment Tax Credits
Clean Technology Investment Tax Credit (CT ITC)
Supports investments in renewable energy, battery storage, and other clean tech solutions.
Carbon Capture, Utilization, and Storage (CCUS)
Encourages investment in carbon capture and storage projects.
Clean Hydrogen (CH) Investment Tax Credit
Provides incentives for hydrogen production and clean ammonia technologies.
Clean Technology Manufacturing (CTM)
Supports businesses manufacturing clean energy equipment, batteries, and zero-emission vehicles.
Key Benefits of Clean Economy ITCs
- Federal support available from 2024 to 2035
- Significant financial incentives for clean technology investments
- Encourages businesses to adopt renewable energy solutions
- Helps Canada transition to a net-zero economy by 2050
- Drives innovation and sustainable advancements
Types of Clean Economy Investment Tax Credits
Clean Technology Investment Tax Credit (CT ITC)
- Provides a 30% refundable tax credit on eligible clean technology investments made from March 28, 2023, to December 31, 2033.
- Reduces to 15% for investments made in 2034 and is phased out by 2035.
- Covers renewable energy equipment, battery storage, heat pumps, and zero-emission vehicles.
Carbon Capture, Utilization, and Storage (CCUS ITC)
- Offers 60% tax credit for direct air carbon capture projects.
- 50% tax credit for carbon capture from other sources.
- 37.5% tax credit for carbon transportation, storage, and utilization.
- Eligible equipment includes carbon capture systems, transportation pipelines, and storage facilities.
Clean Hydrogen Investment Tax Credit (CH ITC)
- Provides up to a 40% tax credit based on the carbon intensity of hydrogen production.
- Covers equipment for producing hydrogen using electrolysis or natural gas reforming with carbon capture.
- Incentivizes clean hydrogen and ammonia production for Canada’s sustainable energy future.
Clean Technology Manufacturing (CTM ITC)
- Grants up to a 30% refundable tax credit on investments in manufacturing clean energy technology.
- Applies to businesses producing solar panels, batteries, wind turbines, zero-emission vehicles, and related equipment.
- Encourages investment in Canada’s clean technology sector.
Benefits
How SRA Can Help Your Business
Expertise in Tax Credits
SRA’s specialists have extensive experience helping businesses claim clean technology tax credits.
End-to-End Support
From eligibility assessment to application submission, we manage the entire tax credit process for you.
Proven Success
Our team has helped businesses secure millions in tax credits, ensuring they maximize their financial benefits.
What types of Clean Economy Tax Credits are available?
The Clean Economy ITCs include Clean Technology (CT ITC), Carbon Capture (CCUS ITC), Clean Hydrogen (CH ITC), and Clean Technology Manufacturing (CTM ITC).
What is the Clean Technology Manufacturing ITC?
This tax credit supports businesses manufacturing clean energy products, offering up to 30% in refundable tax credits for eligible investments.
What is the CCUS ITC?
The CCUS ITC provides tax incentives for businesses investing in carbon capture, transportation, utilization, and storage projects, with credits ranging from 37.5% to 60%.
What is the Clean Hydrogen Investment Tax Credit?
This tax credit provides up to 40% incentives for businesses producing clean hydrogen and ammonia using low-carbon technologies.
What is the Clean Technology Investment Tax Credit?
The CT ITC offers a 30% refundable tax credit for businesses investing in renewable energy equipment, battery storage, and zero-emission technologies.
How do I determine if my business is eligible?
Eligibility depends on the type of investment, the industry, and compliance with government regulations. SRA can assess your eligibility and guide you through the application process.
How do I apply for Clean Economy Investment Tax Credits?
Businesses must submit detailed documentation on their investments, financials, and project plans. SRA simplifies this process by managing the application and compliance requirements.
What is the 30% tax credit in Canada?
The 30% refundable tax credit applies to eligible clean technology investments made between 2023 and 2033 under the Clean Technology ITC.
What is the Canada Carbon Rebate for Small Businesses?
The Canada Carbon Rebate provides financial relief to small businesses impacted by carbon pricing, helping offset carbon tax costs.
