What is the CCUS ITC
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.
This ITC is related to the acquisition of property used to capture CO2 emissions from fuel combustion, industrial process or directly from the air, to transport the captured carbon and to store it or use it in industry.
The CCUS ITC is available to a broad range of CCUS applications in different industrial subsectors such as concrete, plastics, and fuels.
This ITC is available for CCUS projects to the extent that 10% or more of the captured CO2 is used in an eligible use.
Eligible uses are:
The storage of captured carbon in dedicated geological storage
The use of captured carbon in producing concrete in Canada or the United States using a qualified process for sequestration of the captured CO2 in concrete
Any other uses, including enhanced oil recovery, are ineligible uses.
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