Tax Credits for Green Energy
The federal government has implemented several tax credits for investments in the clean economy and decarbonization. These include, in particular, three tax credits administered by the Canada Revenue Agency and a Clean Technology IRAP grant component from the National Research Council of Canada (NRC) applicable to SMEs.
Clean Technology Credit (CTC)
Objective : To encourage investment in the acquisition of clean technologies, including:
New equipment for generating electricity from active solar, wind, and hydropower sources, air-source heat pumps, and geothermal heat pumps
New equipment for generating heat from biomass
New fixed equipment for electricity storage
New equipment used exclusively to generate electricity or heat, or both, solely from geothermal energy
New zero-emission off-highway vehicles described in Class 56 (e.g., heavy hydrogen or electric equipment used in mining or construction) and charging or refueling equipment
15%
to
Refundable tax credit of 15% to 40% of eligible equipment
Credit for Clean Hydrogen (CIHP)
Objective : To promote and accelerate investments in clean hydrogen for projects that produce all or nearly all of the hydrogen as part of their production process. This includes, among other things:
New equipment required for hydrogen production by electrolysis if all or nearly all of its use is for producing hydrogen by water electrolysis.
New equipment used all or nearly all of its use to produce hydrogen from natural gas with reduced emissions.
New equipment that produces heat or electricity from natural gas or hydrogen.
New equipment used solely for producing clean ammonia: equipment for hydrogen-to-ammonia conversion, heat recovery and conversion, nitrogen production, feed storage (unless the feed is stored hydrogen), feed compression, and ammonia refrigeration and storage.
Clean Technology Manufacturing Credit (CIFTP)
Objective : To encourage investment in clean technology manufacturing, including:
The manufacturing of certain materials related to renewable energy (solar, wind, hydro, or geothermal)
The manufacturing of equipment related to nuclear energy
The manufacturing of heavy water and nuclear fuels
The manufacturing of electrical energy storage equipment used to provide grid-scale storage or other ancillary services
The manufacturing of equipment for air-source heat pump and geothermal heat pump systems
NRC Grant (Clean Technology Venture)
Objective : To help SMEs develop clean technologies and bring them to market
Develop new and innovative clean technologies for commercialization
Seek to expand their operations through the development and demonstration of products and services or innovative, technology-driven processes
Have a plan to generate positive environmental impacts, including GHG reduction and cleaner soil, air, and water.
The Opportunity
Any company that invests in manufacturing and/or acquiring new technologies to produce clean energy or decarbonize can benefit. See how these tax credits are an opportunity for you.
Lucrative Tax Credit
Clean energy credits are very lucrative; refunds can reach up to 40% of eligible wages and expenses.
Increases Your Profitability
How many sales do you need to generate to make $100 after tax?
Tax credits mean net cash after tax.
Tax credits and subsidies reduce your costs and increase the profitability of your projects.
Staying Competitive
Your competitors are already taking advantage of this opportunity, why not you?
Delivery Service
R&D Action provides a turnkey delivery that covers the entire process, for all these services, including :
- Identifying and validating eligible projects
- Preparing the application (documents, activities, costs, and tax forms)
- Defending the claim with the authorities
- Cashing in your claim
- Training and supporting your staff
- Implementing best practices
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See other programs of interest? Our team is composed of experts from all technological fields. We will adapt and understand these measures to process your claims.
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