Clean Technology Asset Purchases

The Clean Technology Investment Tax Credit (ITC) will provide support to qualifying corporate taxpayers who are investing capital in specified clean technologies in Canada. Examples of eligible clean technologies include clean electricity generation equipment such as solar panels, wind and water energy generators, stationary electrical energy storage, low-carbon heating systems such as ground and air source heat pumps, and non-road zero-emission vehicles. 

The ITC is 30% of the cost of the asset purchased before Dec 31, 2033 if you elect into the labour requirements or
20% if you choose not to elect into the labour requirements. The ITC reduces the company’s federal tax owing or may result in a refund. Any ITC claimed is taxable income in the following year.

Clean Technology assets may qualify for faster capital cost allowance rates as well:

  • Class 43.1 equipment may be written off at 30% per year on a declining balance basis.

  • Class 43.2 equipment may be written off at 50% per year on a declining balance basis for purchase before 2025.

  • As well the assets may qualify for enhanced first year capital cost allowance rate as indicated below:

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