Clean Technology & Carbon Capture, Utilization,& Storage Investment Tax Credits

According to CRA, as of June 20, 2024, Bill C-59 received Royal Assent. This includes the investment tax credits (ITC) for Clean Technology and Carbon Capture, Utilization and Storage (CCUS). Corporations can now claim these credits on their Corporation Income Tax Return. In order to claim the CCUS ITC, you must be issued an initial project evaluation for each qualified CCUS project by Natural Resources Canada.

Two new lines to claim these credits have been added to Schedule 31 Investment Tax Credits - Corporations:

• T2 Schedule 31 new line 155 – Clean Technology ITC

• T2 Schedule 31 new line 200 – Carbon Capture, Utilization, and Storage ITC

Ensure amounts claimed for these new lines are included on line 780 of your return.

Until a form that details how the ITC is calculated becomes available (anticipated for Fall 2024), taxpayers must provide information with their return. Go to Clean economy investment tax credits (ITCs) - Canada.ca for the information that must be submitted with the return.