Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC)

Overview of the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program:

The ITC provides support to qualifying taxpayers investing capital for acquisitions of certain clean technology manufacturing property that is used in qualifying manufacturing and processing activities or the extraction and processing of 6 key critical minerals.

Benefits of the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program:

• The CTM ITC rate is 30% of the capital cost of eligible property associated with eligible activities. The rate is reduced to 20% in 2032, 10% in 2033, and 5% in 2034.

Eligibility criteria of the Clean Technology Manufacturing (CTM) Investment Tax Credit (ITC) program:

• A taxable Canadian corporation (including a taxable Canadian corporation that is a member of a partnership).
• Labour requirements do not apply to the CTM ITC.
• A taxpayer may claim only one clean economy ITC for the same property.
• A taxpayer cannot claim the CTM ITC if they have claimed the CCUS ITC or the Clean Hydrogen ITC on the same property.
• A taxpayer may claim multiple clean economy ITCs for the same project only if the project includes different types of eligible property.
• A taxpayer may claim both the CTM ITC and the Atlantic investment tax credit.
• Location & Use:
• Must be located in and used exclusively in Canada.
• Must not have been previously used or acquired for any purpose.
• Must meet leasing requirements if leased.
• Must not be an excluded property.
• Eligible Property Types:
• Machinery/equipment for manufacturing or processing (e.g., industrial robots, vats).
• Tangible property attached to buildings or structures used for manufacturing/processing (e.g., ventilation, specialized wiring).
• Mineral extraction/processing equipment (e.g., crushers, kilns).
• Specialized tooling (e.g., moulds, cutting parts).
• Non-road vehicles/automotive equipment (e.g., factory EVs, hydrogen-powered mining vehicles).
• Use Requirements:
• Used 90% for zero-emission technology manufacturing or qualifying mineral activities.