Avoid the reduced credit rate
You must elect to meet certain labour requirements for prevailing wages and apprenticeships to benefit from the regular credit rate of the ITC.
If you elect to meet the labour requirements but fail to do so, there are financial consequences for non-compliance. Responsibility for satisfying the labour requirements is on the claimant or a partnership where at least one partner is claiming the Clean Technology ITC.
If you do not elect to meet the labour requirements, the credit rate will be reduced by 10 percentage points.
The labour requirements apply to covered workers for work that is performed on or after November 28, 2023.
Refer to: For incentive claimants: Avoiding the reduced tax credit rate for clean economy ITCs
Credit rates
To claim the credit, the eligible clean technology property must be available for use.
Your credit rate depends on whether you elect to meet the labour requirements.
| Date the clean technology property becomes available for use | Credit rate if you elect into the labour requirements | Credit rate if you choose not to elect into the labour requirements |
|---|---|---|
| From March 28, 2023 to December 31, 2033 | 30% | 20% |
| From January 1, 2034 to December 31, 2034 | 15% | 5% |