You can generally claim only one of the clean economy ITCs for the same eligible property. You may claim multiple clean economy ITCs for the same project, if the project includes different types of eligible property. There are some exclusions to the above if certain provincial tax credits are claimed.

The CCUS ITC is a refundable tax credit that applies to eligible expenditures incurred for a qualified CCUS project, from January 1, 2022, to December 31, 2040. This program is jointly administered by the Canada Revenue Agency and Natural Resources Canada.

In order to claim the CCUS ITC, you must be issued an initial project evaluation for each qualified CCUS project. A CCUS project is a project intended to support a CCUS process through any of the following:
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- Capturing CO₂ that would otherwise be released into the atmosphere
- Capturing CO₂ directly from the ambient air
- Transporting captured carbon
- Storing or using captured carbon

Refund Rates (2022-2030):
- Capture carbon directly from ambient air - 60%
- Capture carbon other than directly from ambient air - 50%
- Carbon transportation, storage, or use - 37.5%

Refund Rates (2031-2040):
- Capture carbon directly from ambient air - 30%
- Capture carbon other than directly from ambient air - 25%
- Carbon transportation, storage, or use - 18.75%
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The CT ITC is a refundable tax credit for capital invested in the adoption and operation of new clean technology (CT) property in Canada from March 28, 2023, to December 31, 2034. This program is jointly administered by the Canada Revenue Agency and Natural Resources Canada.

Eligible capital investments include (but are not limited to):
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- Equipment used to generate electricity from solar, wind and water energy
- Stationary electricity storage equipment that does not use any fossil fuel in operation (such as batteries and pumped hydroelectric storage)
- Active solar heating equipment, air-source heat pumps and ground-source heat pumps
- Non-road zero-emission vehicles and related charging and refueling equipment that is used primarily for such vehicles
- Equipment used exclusively for the purpose of generating electrical energy or heat energy (or a combination of both), solely from geothermal energy, unless it is part of a system that extracts fossil fuels for sale
- Concentrated solar energy equipment
- Small modular nuclear reactors

Refund rates vary based on when the equipment comes into use. Refund rates noted below will reduced by 10% if labour requirements are not elected.
- From March 28, 2023 to December 31, 2033 - 30%
- From January 1, 2034 to December 31, 2034 - 15%
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The Clean Hydrogen ITC is a refundable tax credit that applies to eligible clean hydrogen property that is acquired and becomes available for use in respect of a qualified clean hydrogen project from March 28, 2023 to December 31, 2034. This program is jointly administered by the Canada Revenue Agency and Natural Resources Canada.

To be eligible for the credit, a project must:
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(a) Produce hydrogen from an eligible pathway
(b) Expected carbon intensity is determined in accordance with 127.48 of the Income Tax Act
(c) The project design can reasonably be expected to achieve stated targets

Eligible property includes:
- Equipment used to create hydrogen through electrolysis of water
- Equipment used to produce hydrogen from eligible hydrocarbons
- Clean ammonia equipment used solely for the purpose of producing ammonia
- Dual-use electricity and heat equipment
- Dual-use hydrogen and ammonia equipment
- Ancillary equipment used solely to support the equipment described above within a hydrogen or ammonia production process as part of certain systems
- Equipment used for system safety and integrity, or as part of a control or monitoring system solely to support the equipment described above
- Property used solely to convert another property that would not otherwise be described above if the conversion causes the other property to satisfy the description of equipment above

Clean Hydrogen Refund Rates

The CTM tax credit is a refundable tax credit that applies to new clean technology manufacturing property that is acquired from January 1, 2024 and that becomes available for use on or before December 31, 2034. This program provides support to qualifying taxpayers investing capital for acquisitions of certain clean technology manufacturing property that is used in qualifying manufacturing and processing activities or the extraction and processing of 6 key critical minerals.

Eligible equipment must be used 90% or more for qualified zero-emission technology manufacturing activities or qualifying mineral extraction, processing or recycling activity.

The CTM refund rate is 30% of the capital cost of eligible property associated with eligible activities. The rate is reduced to 20% in 2032, 10% in 2033, and 5% in 2034.

The CT, CCUS and CH tax credit programs require a technical project submission to be submitted to Natural Resources Canada for pre-approval. MCN can prepare and submit the reports required for these programs. We offer complete report preparation or partial report preparation as a part of our clean economy tax credit practice.