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

In order to qualify, in addition to other limitations, CTM property of the taxpayer must:

• Be property that is situated in and intended for use exclusively in Canada
• Not have been used, or acquired for use or lease, for any purpose whatever before it was acquired by the taxpayer
• Meet additional leasing requirements if the property is leased to another person or partnership
• Not be an excluded property
• Be included in certain capital cost allowance (CCA) classes, with certain qualifications and exceptions, that generally fall in the following categories:
  • Machinery and equipment used for manufacturing or processing, such as industrial robots used to manufacture electric vehicles or vats used to process cathode active materials
  • Certain tangible property attached to buildings and other structures used for manufacturing or processing or that is required for machinery or equipment, such as ventilation systems used to remove chemical fumes or specialized electrical wiring used to provide power to solar panel manufacturing equipment
  • Certain property used for mineral extraction and processing, such as equipment used to crush rock containing copper ore or kilns used to calcinate nickel ore
  • Certain specialized tooling, such as moulds used to cast copper ingots at smelters or cutting parts of a machine used to cut solar cells
  • Non-road vehicles and automotive equipment, such as electric vehicles designed for use in factories or hydrogen-powered vehicles designed for extracting rock from mine sites