The Fall Economic Statement proposed a new investment tax credit for clean technologies. The tax credit will significantly reduce capital costs and facilitate investments in cleantech. Take advantage of this mechanism that has the potential to massively spur cleantech procurement and make sure your technology is eligible!

Canada Cleantech Alliance is going to respond to the government’s call for consultations by providing a list of clean technologies that are currently not considered, or supposedly not considered, but should be eligible. Please provide input here if your technology is not included or if you are in doubt. Deadline: January 16, 2023 (extended),

Background

In preparation for its implementation, the Department of Finance has launched a call for public consultations.The call seeks to obtain feedback on additional technologies that could be considered under the tax credit. The current list of technologies that will be eligible under the credit is outlined in pages 80-81 of the statement. At this time, technologies include:

• equipment to generate electricity from solar, wind and water energy that is described under subparagraphs (d)(ii), (iii.1), (v), (vi), and (xiv) of capital cost allowance Class 43.1;
• stationary electricity storage equipment that is described under subparagraphs (d)(xviii) and (d)(xix) of Class 43.1, but that does not use any fossil fuels in operation, which includes, but is not limited to, batteries, flywheels, supercapacitors, magnetic energy storage, 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 that are described under subparagraph (d)(i) of Class 43.1;
• equipment to generate heat or electricity from concentrated solar energy;
• equipment to generate heat or electricity from small modular nuclear reactors; and
• non-road zero-emission vehicles described in Class 56 (e.g. hydrogen or electric heavy duty equipment used in mining or construction) and charging or refuelling equipment described under subparagraph (d)(xxi) of Class 43.1 or subparagraph (b)(ii) of Class 43.2 that is used primarily for such vehicles.

Please find the technical guide on Capital Cost Allowance Classes 43.1 and 43.2 here.