Consultation on the possibility of introducing a domestic content requirement as part of the Clean Electricity investment tax credit and the Clean Technology investment tax credit
Current status: Closed
The Clean Technology and Clean Electricity investment tax credits provide support to investments that will grow the supply of clean electricity that will be needed to support the growth of Canada's population and clean economy.
In Budget 2025, the government committed to consult on the possibility of introducing a domestic content requirement under the Clean Technology and Clean Electricity investment tax credits.
This consultation sought to explore whether to introduce a domestic content requirement under the Clean Technology and Clean Electricity investment tax credits.
This engagement process gave all interested members of the public the opportunity to provide comments and feedback on this topic. The consultation ran from February 13, 2026 to March 13, 2026.
Thank you to everyone who participated.
Key questions for consideration
This consultation sought feedback on the following key questions:
- A requirement to use domestic content has been introduced in certain government measures to support domestic producers. For example, the U.S. has included domestic content requirements in their clean electricity tax credits, to encourage the use of U.S. materials and equipment assembled domestically. Another example is the recent announcement by the federal government regarding a new Buy Canadian Policy that will require the use of Canadian steel, aluminum and wood products, and create preference for Canadian suppliers and Canadian content in federal procurement processes.
- Would you be in favour of introducing a domestic content requirement under Canada's Clean Technology and Clean Electricity investment tax credits to encourage the use of Canadian products?
- If a domestic content requirement were introduced under the Clean Technology and Clean Electricity investment tax credits, what kinds of products should it be applied to? For instance, should such a requirement be applied to structural steel (e.g., load-bearing columns), advanced manufactured products (e.g., wind turbine generators, photovoltaic modules, battery modules), and/or other products? Should an exemption be allowed to the requirement for certain products or under certain scenarios (if so, what evidence could be used to substantiate an exemption)?
- If a domestic content requirement was introduced, what consequence could be associated with failing to meet a domestic content requirement? Please explain the rationale for your views.
- If a domestic content requirement was introduced, what mechanism(s) could be used to administer the measure (e.g., certification of country of origin or other documentation of domestic content)? Would established country of origin documentation mechanisms, for example those used in the context of tariffs or Canada-U.S.-Mexico Agreement, be appropriate and allow the country of origin of different products to be identified? If not, what mechanism would you envisage in order to identify the country of origin of products?
- Please outline potential positive and negative impacts of domestic content requirements on your business and/or sector of activities (e.g., impacts on costs, project timelines, employment).
- Is this an appropriate approach to support Canadian products?
- Are there other key considerations (such as administrative or implementation considerations, potential economic benefits, specific sectors in Canada affected by other countries' protectionist practices, supply chains challenges or opportunities) on the potential introduction of a domestic content requirement under the Clean Technology and Clean Electricity investments tax credits that you would like to bring to our attention? If so, please explain.
What's next?
Input received through this consultation will be considered alongside the analysis departmental officials are conducting as part of the ongoing work on the Clean Electricity investment tax credit and Clean Technology investment tax credit. While this formal consultation has now concluded, Canadians are welcome to share their ideas and comments with the Department of Finance at any time.