Our review and decision

NRCan and the CRA each have different responsibilities in the Clean Hydrogen ITC evaluation process.

• NRCan is responsible for:

  • Receiving project plans
  • Issuing confirmations for project plans and revised project plans

• The CRA is responsible for:

  • Determining (in consultation with NRCan) whether a clean hydrogen project constitutes one project or multiple projects

Steps of the evaluation process

This process involves multiple steps, and NRCan plays a specific role prior to the project determination of one or multiple projects, issued by the CRA.

1. Preliminary evaluation of project plan submission (NRCan)

   A preliminary evaluation of the project plan, or revised project plan, to ensure completeness and that certain eligibility criteria have been met.

2. Project determination of one or multiple projects (CRA in consultation with NRCan)

   A determination that one or more clean hydrogen projects is one project or multiple projects can occur:

   • At any time before NRCan provides confirmation of a qualified clean hydrogen project
   • If you file, or are required to file a revised project plan, after the revised project plan has been submitted, but before a revised confirmation in writing is issued by NRCan

    Factors considered during project determination

   The CRA will inform you of the determination decision.

   Once you receive a project determination from the CRA, you must acknowledge receipt of the project determination letter through NRCan’s secure portal. NRCan’s confirmation of a qualified clean hydrogen project can only follow once this is done.

   If the project determination indicated that your project should be broken down into multiple project plans, or if multiple projects were determined to be one project, you will need to submit a new project plan or separate project plan(s) through NRCan’s secure portal, within 180 days after the determination is made.

3. Project plan confirmation (NRCan)

   Prior to filing a claim for the Clean Hydrogen ITC, you must be issued a written confirmation from NRCan for each clean hydrogen project plan.

   Once NRCan has received the complete project plan and the project determination letter, NRCan will review the project to confirm whether it is a qualified clean hydrogen project. The review will confirm whether:

   • The hydrogen will be produced from an eligible pathway
   • The expected carbon intensity is determined in accordance with subsection 127.48(6) of the Income Tax Act, and can reasonably be expected to be achieved based on the project design
   • If the project is intended to produce clean ammonia, that the taxpayer has demonstrated sufficient hydrogen production capacity to satisfy the needs of the ammonia production facility, and if the ammonia facility is not co-located, the feasibility of transporting hydrogen between the hydrogen and ammonia facilities

   Written confirmations by NRCan (initial and revised) are uploaded in NRCan’s portal. Once the confirmations have been uploaded, you will receive an email notification and you can review your written confirmation within the secure portal.