Canada’s Clean Economy Tax Credits Receive Royal Assent

• Taxable Canadian corporation;
• REIT; or
• Taxable Canadian corporation or REIT that is a member of a partnership (subject to partnership rules)

Excludes: individuals, trusts (other than REIT), pension funds

1. Situated in Canada and intended for use exclusively in Canada
2. Has not been previously used, or acquired for use or lease
3. If the property is leased to another person, that person be a qualifying taxpayer or partnership all members of which are taxable Canadian corporations, and the lease must be in the ordinary course of taxpayer’s business of selling or servicing the property or of financing the acquisition of the property
4. Types of qualifying equipment:
   1. Electricity generation systems, including solar, wind and water (small hydro, run-of-river, wave, and tidal);
   2. Fossil-fuel free stationary electricity storage equipment, including batteries, flywheels, supercapacitors, and certain storage;
   3. Low-carbon heat equipment, including active solar heating equipment, air-source heat pumps and ground-source heat pumps;
   4. Industrial zero-emission vehicle and related charging or refueling equipment;
   5. Eligible geothermal equipment, including pipes, pumps, heat exchangers;
   6. Concentrated solar energy equipment  used all or substantially all to generate heat or electricity, or a combination, exclusively from concentrated sunlight; or
   7. Small modular nuclear reactors  used all or substantially all to generate electrical energy or heat energy, or a combination, from nuclear fission.

• Taxable Canadian corporation; or
• Taxable Canadian corporation that is a member of a partnership (subject to partnership rules)

Excludes: individuals, trusts, tax-exempt entities (e.g., pension funds, REIT)

1. carbon capture expenditure
2. carbon transportation expenditure
3. carbon storage expenditure
4. carbon use expenditure

• Cumulative CCUS development tax credit: expenses incurred before the first day of commercial operations
• CCUS refurbishment tax credit: expenses incurred after the first day of commercial operations

• British Columbia
• Alberta
• Saskatchewan

• Knowledge sharing reports
• Climate risk disclosure

• Taxable Canadian corporation; or
• Taxable Canadian corporation that is a member of a partnership (subject to partnership rules)

Excludes: individuals, trusts, tax-exempt entities (e.g., pension funds, REIT)

1. Use in connection with a qualified clean hydrogen project (government verification required) of the acquiring taxpayer in Canada
2. Has not been previously used, or acquired for use or lease
3. Situated in Canada
4. Types of qualifying equipment:
   1. Electrolysis equipment used all or substantially all to produce hydrogen through electrolysis of water ;
   2. Natural gas reforming equipment used all or substantially all to produce hydrogen through natural gas reforming, including certain specified equipment;
   3. Clean ammonia equipment used for the sole purpose of producing ammonia;
   4. Dual-use electricity and heat equipment that is part of a clean hydrogen project and that supports the production of hydrogen by reforming natural gas and that is certain energy generation equipment, certain electrical transmission equipment, or certain energy distribution equipment;
   5. Dual-use hydrogen and ammonia equipment that is part of a clean hydrogen project used for the generation of oxygen and nitrogen to be used in both hydrogen and ammonia production;
   6. Integrated ancillary equipment to any of the equipment described above and used solely to support the functioning of such equipment within a hydrogen or ammonia production process as part of certain specified subsystems; or
   7. Safety and monitoring equipment used as part of a control, monitoring or safety system solely to support any of the equipment descried above.
5. Cannot be excluded property

• Information reporting
• CI reporting

(property acquired and becomes available for use)

• Taxable Canadian corporation; or
• Taxable Canadian corporation that is a member of a partnership (subject to partnership rules)

Excludes: individuals, trusts, tax-exempt entities (e.g., pension funds, REIT)

1. Situated in Canada and intended for use exclusively in Canada
2. Has not been previously used, or acquired for use or lease
3. If the property is leased to another person, that person be a qualifying taxpayer or partnership all members of which are taxable Canadian corporations, and the lease must be in the ordinary course of carrying on a business in Canada by taxpayer whose principal business is one of the specified activities (or any combination thereof)
4. Types of qualifying equipment:
   1. Certain machinery and equipment used for manufacturing or processing
   2. Certain tangible property attached to buildings and other structures used for manufacturing or processing or that is required for machinery or equipment
   3. Certain property used for mineral extraction and processing:
   4. Certain specialized tolling
   5. Certain non-road vehicles and automotive equipment

• all or substantially all for certain qualified zero-emission technology manufacturing activities; or
• in a qualifying mineral activity producing all or substantially all qualifying materials (i.e., lithium, cobalt, nickel, copper, rare earth elements; and graphite).