Update on Canada’s clean economy ITCs
From: blg.com
The Canadian government’s ambitious strategy to reshape Canada’s economy towards a 2050 net-zero objective includes two major pillars: directives to the Canada Infrastructure Bank to provide over $20 billion of strategic financing to the clean growth sector, and five “clean economy” investment tax credits (ITCs) to encourage the transition to a cleaner and greener economy.
In general, these ITCs are available only to a taxable Canadian corporation, on qualifying expenditures made by such a corporation (or by a partnership of which it is a member) to purchase (not lease) new property for use in Canada. The ITC is computed as a percentage of such qualifying expenditures, and is payable directly by the government whether or not the recipient has taxes owing (i.e., it is refundable). A taxpayer can only claim one clean economy ITC for the same expenditure if more than one could apply, viz., they are not “stackable”. However, different ITCs could be claimed on separate expenditures that are part of the same project if ITC eligibility requirements are otherwise met.