The Federal Budget 2024 provides the design and implementation details of the Clean Electricity investment tax credit announced in Budget 2023. Eligible corporations would be:
- taxable Canadian corporations;
- provincial and territorial Crown corporations;
- corporations owned by municipalities;
- corporations owned by Indigenous communities; and
- pension investment corporations.
The following types of equipment would be eligible for the credit:
- equipment used to generate electricity from solar, wind, or water energy;
- concentrated solar energy equipment, but limited to equipment used to generate electricity;
- equipment used to generate electricity, or both electricity and heat, from nuclear fission;
- equipment used for the purpose of generating electricity, or both electricity and heat, solely from geothermal energy;
- equipment that is part of a system used to generate electricity, or both electricity and heat, from specified waste materials;
- stationary electricity storage equipment and equipment used for pumped hydroelectric energy storage, but excluding equipment that uses any fossil fuel in operation;
- equipment that is part of an eligible natural gas energy system; and
- equipment and structures used for the transmission of electricity between provinces and territories.
Qualifying expenditures could include capital expenditures to refurbish existing facilities.
The credit would apply to eligible property that is:
- acquired and becomes available for use on or after Budget Day and before 2035, provided it has not been used for any purpose before its acquisition; and
- not part of a project that began construction before March 28, 2023.
If you would like help with dealing with the CRA or would like to know more about taxable benefits, please feel free to call us at (905) 305-9722 or email us at info@eigenmachtcrackower.com and we will help you out!
