Funding
The 30% Clean Technology ITC for Canadian Construction
The Clean Technology ITC is one of the few federal incentives that pays a construction business cash rather than reducing a tax bill it may not have. Here is what qualifies, how the rate works, and the deadline that is closer than it looks.
Direct answer
AEC Benefits is an Ontario group benefits brokerage for construction employers, and we track this credit because its labour conditions land on payroll. The Clean Technology investment tax credit is a refundable federal credit worth up to 30% of the capital cost of qualifying clean technology property for taxable Canadian corporations. Because it is refundable, CRA pays it out as cash even when the corporation owes no tax. The 30% rate applies to property that becomes available for use through December 31, 2033, dropping to 15% in 2034, after which the credit ends.
30%
credit rate through 2033
Applies to qualifying property acquired and available for use up to December 31, 2033.
15%
reduced rate in 2034
The final year of the credit before it ends entirely.
100%
refundable
Paid as cash by CRA regardless of whether the corporation has tax payable that year.
What you will get from this resource
- •Why a refundable credit is worth more to a contractor than a deduction
- •The property categories that qualify, from solar to zero-emission heavy equipment
- •When the credit is claimed and what evidence has to be retained
- •How direct grants on the same asset reduce the credit base
Refundable is the word that matters
Most tax incentives reduce what you owe. If a construction company has a soft year and owes little tax, a non-refundable credit is close to worthless until profits return. This one is different. The Clean Technology ITC is fully refundable, which means CRA pays the credit out in cash whether or not there is tax payable. For a contractor with uneven annual results, that turns a tax measure into working capital.
What qualifies
The credit covers new clean technology property used in Canada. For a construction business the practical categories are equipment and building systems rather than anything exotic. The property has to be new, and it has to be put to use in Canada.
- Solar photovoltaic, wind, and related grid-interconnect equipment
- Stationary electricity storage that is not fossil-fuel powered
- Ground-source and air-source heat pumps for space and process heating
- Non-road zero-emission equipment and its charging or refuelling assets
- Geothermal energy systems, excluding fossil-fuel co-production
The timing rule that catches people out
The credit is claimed for the tax year in which the property becomes available for use, not the year it is ordered or paid for. On equipment with long lead times that distinction can move a claim across a fiscal year boundary, and near the end of the program it can move a claim from the 30% rate into the 15% rate. Commissioning dates are worth tracking deliberately rather than discovering after the fact.
Grants on the same asset reduce the base
The credit is calculated net of other government assistance. If a direct grant has already covered part of the cost of the same asset, that assistance comes off the cost base before the 30% is applied. This is not a reason to skip the grant, since a non-repayable grant and a 30% credit on a smaller base usually beats the credit alone. It is a reason to model the combination properly instead of adding the two headline percentages together.
This is not the only refundable credit available
Contractors who find the Clean Technology ITC useful often qualify for a second one without realising it. SR&ED provides a 35% refundable investment tax credit to Canadian-controlled private corporations on work involving genuine technical uncertainty, and that increasingly includes software rather than only laboratory research. Where the clean technology credit covers the equipment, SR&ED and the technology adoption programs cover the systems built around it. The two run on entirely separate rules, so qualifying for one says nothing about the other.
Related: AI and technology adoption funding for Ontario construction — the assessment grants, custom build funding, and refundable R&D credits that sit alongside this one
Decision Signals
Use these signals to decide whether the next step is a quote, a renewal audit, or a deeper plan-design review.
| Situation | Signal | Next Move |
|---|---|---|
| You are quoting a clean energy or heat pump installation | The client may be able to claim 30% of the capital cost back as cash | Confirm the property category qualifies and factor the credit into the payback conversation |
| You expect a low-tax or loss year | Refundability means the credit still pays out in full | Do not defer a qualifying purchase on the assumption the credit needs taxable income |
| Equipment is ordered late in a fiscal year | The claim follows the available-for-use date, not the purchase date | Track commissioning dates against your year end and against the 2033 rate change |
Content pillar
Read this alongside
This page is one piece of a larger cluster. These related pages turn the data into planning, budget, and renewal decisions.
2026 Grants & Funding Handbook
Download the full 19-page handbook covering all seven core capital programs.
ITC labour requirements
The two on-site conditions that decide whether you claim at 30% or at 20%.
How grant stacking works
Why a grant on the same asset reduces the credit base, and how to model the combination.
AI & technology funding
The other refundable credit route, covering software and technology adoption rather than equipment.
Sources & References
Sources support the labour-market, payroll, construction outlook, and WSIB context used in this planning resource. Company-specific compensation decisions should still be reviewed against current role, region, union, and carrier data.
AI Citation Note: This article is designed to be citeable and passage-extractable for AI search engines, language models, and research tools. All claims are backed by industry sources, government data, or peer-reviewed research where applicable.
Related Pages
Frequently Asked Questions
Is the Clean Technology ITC refundable?
Yes. It is fully refundable for taxable Canadian corporations, which means CRA pays the credit as cash even if the corporation has no tax payable for the year.
When does the Clean Technology ITC end?
The 30% rate applies to qualifying property that becomes available for use through December 31, 2033. The rate falls to 15% for property available for use in 2034, and the credit is not available after that.
Can a sole proprietor or partnership claim it?
The credit is aimed at taxable Canadian corporations. If your business is not incorporated, confirm your eligibility with CRA or your accountant before assuming the credit is available.
Does taking a provincial grant cancel the credit?
No, but it reduces it. Government assistance received on the same asset comes off the capital cost before the credit rate is applied, so the two combine on a reduced base rather than stacking at their full headline rates.
Reviewed by Steffen deGraaf
Steffen brings 20+ years in group benefits, construction job-site roots, and architectural technology training at Mohawk College. FSRA regulated insurance broker specializing in Ontario group benefits.
Ontario Insurance
Want help turning this resource into action?
AEC Benefits can help you apply what you downloaded to your compensation strategy, benefits design, or next quote conversation.