On March 28th, the Federal Government introduced the 2023 Budget, featuring an exciting new tax incentive for those transitioning to clean energy technology. The Clean Technology Investment Tax Credit provides a 30% refundable tax credit for eligible projects such as new solar PV systems, batteries, solar heating, and heat pumps. You can claim this incentive for eco-friendly investments made from March 28th until 2034, aligning with the government’s goal to accelerate clean tech investment as Canada targets net zero by 2035.
To qualify, your business must be taxable, invest in specific equipment (Class 43.1 or 43.2), and fulfill upcoming labor requirements.