Bill C59: Clean Technology Investment Tax Credit

We just wanted you to know about a new development that has been in the works for some time. The Federal government has finally passed Bill C59 which enacts the Clean Technology Investment Tax Credit (30%).

This tax credit is retroactive to projects acquired after March 28th, 2023, and is a refund on your corporate tax, regardless of profitability, on the capital cost of a solar system that we have either designed and installed for you, or are in talks about designing and installing for you.

What is the value of the refund? 

30% of the capital cost of the array. 10% is at risk if certain ‘labour requirements’ are not met. See more below.

Who can claim the refund?

Taxable Canadian Corporations or REIT’s, w/ special rules for partnerships. All equipment must be new.

How do I claim the refund?

This would be through your tax professional, but we are here to support. There will likely be lots of supporting documentation required.

What are the labour requirements?

10% of the refund amount is contingent upon us, the installer, being able to prove we pay prevailing wages and provide apprenticeship opportunities for over 10% of the workforce. The answer to both is that we provide apprenticeship to well over 10% of our labour force, and we do pay market or above market for electricians and apprentices. There is some language about installer pay being in line with a local collective bargaining agreement (for union shops) and we are looking into what those impacts will be on our labor rates, if any, to qualify for this refund.

What else should I know?

The Canada Revenue Agency will try to recapture a prorated portion of the investment tax credit if the property is sold or disposed of within the next 10 years.

How do I get started?

If this is of interest to you or you have more questions, Inferno Solar President Curtis Craig is always available at 403-200-8706 for a discussion.