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

1. Evaluation of project plan submission (NRCan)

   Review of whether the project described in the project plan meets the definition of a qualified clean hydrogen project.

2. 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 confirms the expected carbon intensity of the hydrogen to be produced by a 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 submit the project determination document through NRCan’s secure portal. NRCan will start the project plan review process once you have uploaded the project determination document.

   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 revised project plan(s) on NRCan’s secure portal, within 180 days after the determination is made.

   Once NRCan has received the complete project plan and the project determination document, the project will be reviewed by NRCan to confirm whether the project is a qualified clean hydrogen project by confirming in writing that:

   • 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

3. Project plan confirmation (NRCan)

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

   Written confirmations by NRCan (initial and revised) are uploaded in NRCan’s portal. You will receive an email notification.

   You can review your written confirmation within the secure portal.