Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit (ITC)
Deadline extension for CCUS claims
The deadline for filing CCUS ITC claims is the later of December 31, 2025, and one year from the filing due date of the relevant tax year. However, legislation proposed in Bill C-15 extends the December 31, 2025 deadline by one year. As a result, the CRA will accept CCUS ITC claims until the later of December 31, 2026, and one year from the filing due date of the applicable tax year. It is important to note that CCUS ITC claims for the 2022, 2023, and (where applicable) 2024 tax years submitted after December 31, 2025, will not be processed until the proposed legislation receives Royal Assent.
The CCUS ITC is a refundable tax credit that applies to eligible expenditures incurred for a qualified CCUS project, from January 1, 2022, to December 31, 2040.
The CCUS ITC is administered by the Canada Revenue Agency (CRA) and Natural Resources Canada (NRCan).
CRA provides:
- Ability to claim the credit on a corporate income tax return
- Audit and compliance activities
- Administration of the credit
NRCan provides:
- CCUS project plan submission portal
- Project evaluations and verification of property
- Issues initial and revised project plan evaluations to taxpayers which includes a verified CCUS property list
- Scientific, engineering, and technical guidance