Harnessing the Power of Clean Economy Investment Tax Credits

Geoff Stenger, Greg Johnson and Brendan Sigalet write the legal feature column in ReNew Canada on how companies can make the most of federal investment tax credits (ITCs) for clean energy projects in Canada.

Over the past two and a half years, the Canadian government has proposed six different major ITCs that are aimed at incentivizing the decarbonization of the economy in Canada. Four are now enacted.

These ITCs are a powerful incentive for business. Legislation enacting them is complex, however, and the certainty of ITC availability is critical for projects depending on them. Geoff, Greg and Brendan share important steps which should be taken in order to optimize the ITC entitlement for a given project when it comes to:

• Determining the eligibility of a project for ITCs
• Ensuring compliance of the project with labour requirements
• Where applicable, ensuring that a project plan is filed
• Reviewing the timing of the receipt of any ITCs
• Reviewing potential risk mitigation options available for the project

The full feature column is available here.