Newly announced – The Government of Canada has released the 2023 budget with a “Clean Technology Investment Tax Credit.”

Further to the 2023 budget announcement, it has been established that there are two programs being proposed:

  • The “Clean Technology Investment Tax Credit,” which applies only to the manufacturing of clean technologies, and
  • The “Investment Tax Credit for Clean Electricity” which would apply to commercial energy investments such as solar net metering and battery storage.

The following information is directly from the Government of Canada – Made In Canada Budget Plan 2023:

“To support and accelerate clean electricity investment in Canada, Budget 2023 proposes to introduce a 15 per cent refundable tax credit for eligible investments in:

  • Non-emitting electricity generation systems: wind, concentrated solar, solar photovoltaic, hydro (including large-scale), wave, tidal, nuclear (including large-scale and small modular reactors);
  • Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries, pumped hydroelectric storage, and compressed air storage; and,

This is how we understand the program to work. However, it is stated in the budget plan that the design and implementation of the program details are still to come.

HERE’S WHAT YOU NEED TO KNOW:

  • The tax credit amount is 15% of the entire capital cost of your project, refunded on your taxes.
  • Applicable projects include Solar PV, Battery Energy Storage and Wind Power.
  • The credit incentive is for commercial (including agricultural) businesses with an HST #.
  • The incentive cannot be combined with the Greener Homes Grant program.
  • The program applies to new projects and projects already underway for any costs accrued from March 28, 2023.

HOW DOES THE 15% TAX CREDIT WORK?

Example:

  • The capital project cost $100,000
  • The credit refund would be $15,000
  • If you paid $10,000 in tax for the year, your tax owed would be $0
  • The remaining $5,000 tax credit is still available for the following years.*

*Note: It is still being determined whether the government will pay the entire amount out in a one-time refund or if the credit will is applied to future tax payments against the business. We are investigating and will update you when we have further clarification from our government.

HERE’S WHAT YOU NEED TO KNOW:

  • The tax credit amount is 15% of the entire capital cost of your project, refunded on your taxes.
  • Applicable projects include Solar PV, Battery Energy Storage and Wind Power.
  • The credit incentive is for commercial businesses with an HST #.
  • The incentive cannot be combined with the Greener Homes Grant program.
  • The program applies to new projects and projects already underway for any costs accrued from March 28, 2023.

HOW DOES THE 15% TAX CREDIT WORK?

Example:

  • The capital project cost $100,000
  • The credit refund would be $15,000
  • If you paid $10,000 in tax for the year, your tax owed would be $0
  • The remaining $5,000 tax credit is still available for the following years.*

*Note: It is still being determined whether the government will pay the entire amount out in a one-time refund or if the credit will is applied to future tax payments against the business. We are investigating and will update you when we have further clarification from our government.

BOOK YOUR PROJECT ASAP!

Remember, there is only so much grid capacity, and it will get used up quickly.

We have 15 years of energy project experience across Ontario.
Ask us about local project references near you or view our project portfolios below.

Contact us to discuss your energy project by filling out the “Get a Quote” form below, and one of our energy experts will be in touch within 24 hours. 

BOOK YOUR PROJECT ASAP!

Remember, there is only so much grid capacity, and it will get used up quickly.

We have 15 years of energy project experience across Ontario.
Ask us about local project references near you or view our project portfolios below.

Contact us to discuss your energy project by filling out the “Get a Quote” form below, and one of our energy experts will be in touch within 24 hours. 

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What you need to know about us. Arcadian Projects may not offer the lowest project cost – this is not our primary core value. What we do offer our clients is an expertly designed system with quality components, a system backed by an excellence workmanship guarantee and a team of experienced and certified trades and energy professionals.