Who can claim

To claim the Clean Electricity ITC, you must:

• be a qualifying entity, which includes qualifying entities that are members of a partnership
• have acquired a clean electricity property that becomes available for use in the year
• have a qualified natural gas energy system evaluation issued by NRCan if your claim includes costs related to qualified natural gas energy equipment

Claimants who elect to meet the labour requirements can avoid being limited to the reduced tax credit rate.

Refer to: Avoiding the reduced tax credit rate for Clean Economy ITCs

Qualifying entities

A qualifying entity is a qualifying corporation or a qualifying trust:

Qualifying corporations

• Taxable Canadian corporations

  A taxable Canadian corporation may qualify.

• Designated provincial or territorial Crown corporations

  What is a designated provincial or territorial Crown corporation

  A designated provincial or territorial Crown corporation is a corporation that meets one of the following conditions:

  • at least 90% of its shares (except directors’ qualifying shares) or its capital is owned by one or more provincial or territorial governments
  • it is Northwest Territories Power Corporation, Qulliq Energy Corporation or Yukon Energy Corporation
  • all of its shares (except directors’ qualifying shares) or its capital are owned by one or more of the corporations described in the preceding two bullets

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

• Certain corporations owned by municipalities or Aboriginal governments

  Certain corporations owned by municipalities or Aboriginal governments may qualify:

  • Corporations (described in paragraph 149(1)(d.5) of the Income Tax Act) where at least 90% of the shares or capital are owned by one or more of the following:

    • a municipality in Canada
    • an Aboriginal government (as defined in subsection 241(10) of the Act) or similar Indigenous governing bodies (described in paragraph 149(1)(c) of the Act)

  • Corporations (described in paragraph 149(1)(d.6) of the Income Tax Act) where all of the shares (except directors’ qualifying shares) or all of the capital are owned by one or more of:

    • a municipality in Canada
    • an Aboriginal government (as defined in subsection 241(10) of the Act) or similar Indigenous governing bodies (described in paragraph 149(1)(c) of the Act)
    • a corporation described in paragraph 149(1)(d.5) of the Act

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

• Certain corporations owned by one or more municipalities in Canada in combination with one or more designated provincial or territorial Crown corporations

  Some corporations may be eligible where all the shares (except directors’ qualifying shares) or all the capital are owned by one or more municipalities in Canada in combination with one or more Designated provincial or territorial Crown corporations (as described above)

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

• Certain pension corporations

  Pension corporations as described in paragraph 149(1)(o.2) of the Income Tax Act may qualify.

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

• Canada Infrastructure Bank

  Canada Infrastructure Bank is a qualifying corporation for clean electricity property that is acquired and becomes available for use on or after December 16, 2024.

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

• Canada Growth Fund Inc. and any corporation that is a subsidiary wholly-owned corporation of Canada Growth Fund Inc.

  Canada Growth Fund Inc. and any corporation that is a subsidiary wholly-owned corporation of Canada Growth Fund Inc. are considered qualifying corporations for clean electricity property that is acquired and becomes available for use on or after November 4, 2025.

  Written agreement required for these corporations

  To qualify for the Clean Electricity ITC, the corporation must sign a written agreement confirming that it agrees to follow the Income Tax Act in relation to the Clean Electricity ITC. If it does not sign the agreement, then it can’t claim the Clean Electricity ITC.

Tax-exempt entities

To claim the Clean Electricity ITC, qualifying corporations must have a business number with the “corporation income tax - RC” program account type. For more information, go to: Corporation income tax program account.

Qualifying trust

Trusts that meet all of the following conditions may qualify:

• each of its beneficiaries is a corporation as described in paragraph 149(1)(o.2) of the Income Tax Act
• it is a limited partner of a partnership
• its sole undertaking is owning its interest in the partnership together with any ancillary activities

Claiming one or more ITCs

You can claim only one of the Clean Economy ITCs for the same amount for an eligible property. For example, you cannot claim the Clean Electricity ITC if you or someone else claimed the Clean Technology ITC on the same amount for a particular eligible property.

You cannot include the cost of a clean electricity property when calculating the Clean Electricity ITC if, on any portion of the capital cost of that property, you or someone else claimed:

• a Carbon Capture, Utilization, and Storage (CCUS) ITC or
• a Clean Hydrogen ITC

You may claim multiple Clean Economy ITCs for the same project, if the project includes different types of eligible property.

You can claim both the Clean Electricity ITC and the ITCs in section 127 of the Act (for example, the Atlantic ITC) for the same property.