Clean Hydrogen Investment Tax Credit (ITC)

Overview of the Clean Hydrogen Investment Tax Credit (ITC) program:

The Clean Hydrogen ITC is a refundable tax credit that applies to eligible clean hydrogen property that is acquired from March 28, 2023 and that becomes available for use on or before December 31, 2034. This credit is related to the production of clean hydrogen with a carbon intensity of less than 4 kilograms of carbon dioxide equivalent (CO2e) per kilogram of hydrogen produced; and if applicable, the production of clean ammonia that uses a feedstock of clean hydrogen produced by the qualified project.

Benefits of the Clean Hydrogen Investment Tax Credit (ITC) program:

• Ability to claim the credit on a corporate income tax return
• Scientific, engineering, and technical guidance

Eligibility criteria of the Clean Hydrogen Investment Tax Credit (ITC) program:

• Be a taxable Canadian corporation (including a taxable Canadian corporation that is a member of a partnership)
• Have a qualified clean hydrogen project, and have acquired eligible clean hydrogen property that becomes available for use in the year
• A clean hydrogen project must meet all of the following (confirmed in writing by NRCan):
• Must be property that is in Canada, acquired and available for use on or after March 28, 2023 and was never previously used by any person.
• Excluded Property
• Property in CCA Class 57 or 58.
• Equipment for off-site transmission, transport, distribution, or storage.
• Equipment preparing hydrogen for transport (e.g., liquefaction, high-pressure compression).
• Vehicles, refuelling/charging equipment.
• Buildings, structures.
• Construction, furniture, office equipment.