Who is eligible for the Clean Technology ITC?

The Clean Technology ITC is a major victory for businesses throughout Canada that want to experience the benefits of renewable energy. The 30% tax credit can save you thousands on your investment in clean technology and make a significant dent in your upfront costs.

The credits provided by the Clean Technology ITC will be available to any taxable Canadian corporations that acquire “eligible property” exclusively for business use in Canada. In order to claim the tax credit, the taxpayer must be the original owner of the property.

However, there are some restrictions on what properties are eligible to receive the ITC credits:

• Property acquired prior to March 28, 2023 will not be eligible
• To qualify for the clean tech credits, the property must meet specific requirements (listed below).
• The Clean Technology ITC cannot be claimed if a CCUS tax credit was already deducted for the same property

For more information about eligibility requirements, please reference Natural Resources Canada.

What is meant by “eligible property?”

The term “eligible property” refers to any investments in clean technologies and materials that meet the eligibility criteria outlined in Bill C-59. This includes the following:

• Equipment used to generate electricity from solar, wind and water energy.
• Stationary electricity storage equipment that do not use fossil fuels in their operation. This includes batteries, flywheels, compressed air energy storage, pumped hydroelectric energy storage, gravity energy storage and thermal energy storage.
• Active solar heating equipment, air-source heat pumps and ground-source heat pumps.
• Non-road zero-emission vehicles and equipment that is used primarily to power these vehicles. This means certain Electric Vehicles (EVs) and their charging equipment.
• Equipment used exclusively for the purpose of generating electrical energy or heat energy, or a combination of electrical energy and heat energy, solely from geothermal energy
• Concentrated solar energy equipment that generates heat and/or electricity exclusively from concentrated sunlight. Examples include solar tracking systems, thermal receivers, distributors, and more.

In order to be considered “eligible property,” any technologies or materials must be new equipment that is situated in Canada and intended for use exclusively in Canada. For more information about what properties are covered by the Clean Tech ITC, please refer to Bill C-59. 

Contact Ontario Solar Installers For Additional Guidance

Whether you’re ready to purchase equipment or just need some assistance navigating the requirements laid out in Bill C-59, contact Ontario Solar Installers today. We’ll provide you with guidance you need to get the maximum tax credit that is available to you.