Canada's Clean Economy Investment Tax Credits Boost Green Innovation
Key Ideas
  • Canada's Clean Economy Investment Tax Credits, totaling $93 billion by 2034–35, aim to attract investment, drive innovation, create jobs, and push the economy towards a net-zero future.
  • The passing of the Clean Economy Investment Tax Credits laws, including support for clean technology, carbon capture, clean technology manufacturing, and clean hydrogen projects, is a significant step in decarbonizing Canada's economy.
  • The Clean Technology and CCUS Investment Tax Credits are already available, providing approximately $11.4 billion in support until 2027–28, with upcoming opportunities for clean technology manufacturing and clean hydrogen projects.
  • The Clean Hydrogen Investment Tax Credit offers a 15 to 40 percent refundable tax credit for hydrogen projects, prioritizing the cleanest hydrogen production methods and potentially eligible equipment for ammonia conversion.
The Government of Canada is actively supporting Canadian industry in transitioning towards a net-zero economy through the implementation of Clean Economy Investment Tax Credits (ITCs). With a commitment of $93 billion in federal incentives by 2034–35, these tax credits are designed to attract investments, promote Canadian innovation, create jobs, and steer the economy towards achieving net zero by 2050. The Ministry of Energy and Natural Resources and the Ministry of National Revenue have introduced the first four Clean Economy Investment Tax Credits, focusing on clean technology, carbon capture, clean technology manufacturing, and clean hydrogen projects. The passing of these laws marks a significant milestone in Canada's journey towards decarbonization. Minister of Natural Resources, Jonathan Wilkinson, emphasizes the importance of clean technology innovation in building a prosperous net-zero economy and creating sustainable job opportunities for Canadians. Businesses can now apply for the Clean Technology and CCUS ITCs, with an estimated $11.4 billion in support available until 2027–28. The forthcoming Clean Technology Manufacturing ITC and Clean Hydrogen ITC will further expand the scope of support for eligible businesses. The Clean Technology Manufacturing ITC aims to assist companies involved in manufacturing clean technologies, while the Clean Hydrogen ITC offers a refundable tax credit for hydrogen projects, with a focus on promoting the production of clean hydrogen. By providing financial support for a range of clean technology projects, Canada is paving the way for a greener and more sustainable future.
ADVANCEH2

Our vision is to be the world's leading online platform for advancing the use of hydrogen as a critical piece needed to deliver net-zero initiatives and the promise of a clean H2 energy future.

© 2024 AdvanceH2, LLC. All rights reserved.