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Eco Tax in Canada: The Business Credit Explained

Updated Checked by the Tax-Services.ca editorial team How we check

Eco tax has no single meaning in Canada. The one federal tax break we could confirm on an official page is the Clean Technology investment tax credit, which is aimed at businesses. It’s refundable and can reach 30% of the cost of qualifying clean technology property, so a corporation owner should read up on it.

A word on the name first. Eco Tax Inc reads like a company. We have no information about any such firm and make no claim about it, so this page sticks to what the government publishes.

What is the clean technology credit?

The CRA describes it as a refundable credit for money spent on new clean technology property. The rate can be up to 30% for property acquired and ready for use between March 28, 2023 and December 31, 2033. For 2034 the page says up to 15%. You claim it on a corporate income tax return or a trust return, and Natural Resources Canada advises on what counts as qualifying clean technology.

Refundable matters. A credit that’s refundable can be paid out even when your tax bill is smaller than the credit.

Item What the CRA says
Rate, property ready for use March 28, 2023 to December 31, 2033 Up to 30%
Rate, property ready for use in 2034 Up to 15%
Refundable? Yes
Where you claim it A corporate income tax return or a trust return
Who advises on qualifying property Natural Resources Canada

The word “up to” is doing real work. The CRA has separate rules on labour requirements and a reduced rate, and we didn’t read them in enough detail to state them. Read the CRA’s pages on who can claim and what property qualifies before you buy anything.

What could it look like in dollars?

Say a corporation buys $100,000 of qualifying property. At the top rate, the credit would be up to $30,000. That’s arithmetic on the stated rate, not a promise, because the property has to qualify and the rules have conditions.

Now compare it with the tax bill. Our corporate tax calculator gives $35,088.00 for a year on $300,000 of active business income in Ontario, an average of 11.7%. Treat that as an estimate, because Ontario changed its small business rate on July 1, 2026 and the figure is a blended one we derived. A $30,000 credit would cover most of it.

Timing is the catch. The CRA’s dates refer to when property becomes available for use, so check how that lines up with your year end.

Is there an eco tax credit for individuals?

We couldn’t confirm a current federal credit for individuals on the official pages we read, so we’re not listing one. If you’re weighing a purchase such as a heat pump or an electric vehicle, ask the program’s own page what it pays now, and don’t rely on a website that quotes numbers without a date.

What you can do today is see how a deduction or credit moves your own bill. The tax credits calculator shows how much a deduction saves at your marginal rate and how a credit works at 14% federally. It uses the federal side only, so add your province’s own credits separately.

Do environmental fees show up on your tax bill?

Some products carry a separate recycling or environmental fee at the till. Whether GST or HST applies on top is a separate question, and we didn’t confirm the rule from an official page. To test a receipt, the GST/HST calculator shows how the tax is added to a price, and the HST reverse calculator backs it out of a total.

Mistakes to avoid with green tax claims

Assuming every green purchase earns a credit. Most don’t.

Treating “up to 30%” as a flat 30%. Check the property type and the conditions.

Buying before you’ve read the rules. The CRA sets conditions beyond the equipment itself, and we didn’t read them all.

Trusting a firm that promises a specific refund by phone or email. Ask them to point to the CRA page that says so.

Where do these figures come from?

The credit rates, dates and refundable status come from the Canada Revenue Agency’s clean technology investment tax credit pages, read in September 2026. The corporate tax figure comes from our own calculator on 2026 rules. Federal rules can change, so recheck the CRA pages before you act. This site has no link with the CRA or any government body.

Frequently asked questions

What is the clean technology investment tax credit?

A refundable CRA credit for new clean technology property. The rate can be up to 30% for property ready for use from March 28, 2023 to December 31, 2033.

Who can claim it?

The CRA says you claim it on a corporate income tax return or a trust return. Check its who can claim page for the full rules.

Is there a federal eco tax credit for individuals?

We couldn't confirm one on the official pages we read, so we don't list one.

Does refundable mean I get cash?

A refundable credit can be paid even if it's bigger than your tax bill.

Is Eco Tax Inc covered here?

No. We have no information about any firm of that name and make no claim about it.

More on this topic

Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.

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