The Canadian clean energy sector is poised for growth due to opportunities created by the clean economy investment tax credits first introduced in 2023. These clean economy refundable investment tax credits intend to incentivize environmentally friendly investments in qualifying green technologies and clean energy capital property.
The following tax credits received royal assent in June 2025:
- Carbon capture, utilization and storage (CCUS)
- Clean hydrogen (CH)
- Clean technology (CT)
- Clean technology manufacturing (CTM)
The following tax credits still require royal assent:
- Electrical vehicle (EV) supply chain
- Clean electricity investment tax credit (CE)
It’s critical to understand which energy tax credits are most appropriate to your organization in order to sustain profitability and inform investment decisions in an increasingly competitive global market.
Navigating clean economy investment tax credits
Applicable businesses have opportunities to optimize incentives, which could provide potential improved returns on investments. This includes companies planning to invest in capital projects in the following areas:
- Carbon capture
- Clean hydrogen
- Clean energy generation (including solar, wind, geothermal and hydroelectricity)
- Manufacturing clean energy technologies
- Mineral extraction and processing
- EV supply chain
- Clean electricity
Understanding the nuances of the Income Tax Act requires thoughtful consideration. RSM Canada’s clean economy team guides middle market enterprises through the intricate landscape of clean economy investment tax credits. We combine industry knowledge with technical experience to provide a robust range of services across the energy value chain.
Our team includes professionals well-versed in taxation, engineering, business, finance and economics. RSM Canada caters to a diverse clientele, including project developers, investors, manufacturers, contractors and businesses committed to navigating the energy transition landscape.
For clients with a presence in both the U.S. and Canada, RSM has a North America clean energy team that will collaborate to strategize and maximize credits between the countries’ different programs.
