Business tax measures
Clean Electricity Investment Tax Credit
The 2023 budget proposed a refundable ITC for clean electricity, equal to 15% of the capital cost of eligible property. The 2024 budget provides the design and implementation details of the ITC, including the eligibility criteria. It also includes special rules for property that generates electricity from natural gas with carbon capture and property used to transmit electrical energy between provinces or territories, as well as details of the compliance and recovery process.
The ITC will be available only to eligible Canadian corporations, which are defined as:
- taxable Canadian corporations and pension investment corporations
- provincial and territorial Crown corporations (subject to additional requirements)
- corporations owned by municipalities or Indigenous communities
Property eligible for the ITC…
