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The main federal credit for green equipment is the Clean Technology investment tax credit, worth up to 30% of the cost of qualifying property that’s ready for use between 28 March 2023 and 31 December 2033. On $100,000 of equipment that’s up to $30,000, and your bookkeeping decides how well you can prove it. Here’s how to record green energy credits so the claim holds up.
What is the credit, and who claims it?
The CRA describes the Clean Technology ITC as a refundable credit for money spent on new clean technology property in Canada. It’s up to 30% for property available for use through 2033, up to 15% for 2034, and none after that. Corporations claim it with their T2 return. We didn’t confirm the rules for other filers, such as trusts, so check the CRA page if you aren’t a corporation.
Refundable means you can get paid even if you owe no tax. Your books need to show that money coming.
Other federal clean economy credits exist too, and each has its own property list and conditions. This page covers the general bookkeeping habits and doesn’t test eligibility. Natural Resources Canada gives the technical guidance on what counts as clean technology property, and the CRA runs the tax side.
How should you record the purchase?
Treat it as an asset, not an expense. Give it its own line in your fixed assets with the supplier, invoice date, cost and the date it became available for use. That last date drives which rate applies, so write it down the day it happens and keep a commissioning note or a work order.
Keep the sales tax apart. In Ontario, a $100,000 purchase carries $13,000 of HST, and in Alberta $5,000 of GST. We got those from the GST/HST calculator. You may be able to claim that tax back, but that’s a separate question, and it doesn’t feed into the clean technology credit’s cost base as far as we could confirm, so leave that to your accountant.
Where does the credit show up in your books?
Three places, and they aren’t the same amount at the same time.
| Item | Example on $100,000 of equipment | When it hits |
|---|---|---|
| Asset cost | $100,000 | Purchase date |
| Credit claimed, at the top 30% rate | Up to $30,000 | Tax return year |
| Net cost after the credit | Down to $70,000 | After the CRA assesses the claim |
Until the CRA assesses the return, treat the credit as a receivable, not cash. If the CRA reviews or reduces the claim, you’ll want the invoices and proof of use ready. A page from the CRA says a claimant may choose how the credit affects the asset’s undepreciated capital cost, and that choice changes your taxable income. We couldn’t confirm the full rules, so this is a question for your accountant before the return is filed, not after.
Do green upgrades pay for themselves?
Sometimes, and only if the numbers hold. Enter the net cost, after the credit you expect, and the yearly savings into the ROI calculator. To see how the credit and the company’s tax rate interact, the corporate tax calculator shows tax at the federal rate of 9% on small business income up to $500,000, plus provincial tax. For Ontario, the 2026 small business rate is a blend that we derived, since the provincial rate changed on 1 July 2026, and it isn’t a published figure.
Say your equipment cost $100,000 and you expect $8,000 a year in savings. Without the credit that’s 12.5 years to break even. With a $30,000 credit, the net cost is $70,000 and it’s 8.75 years. We calculated both by hand, and they ignore financing, maintenance and any change in energy prices.
Mistakes and limits
The big one is deciding it qualifies because the supplier said so. Supplier marketing isn’t proof, and only the CRA’s property rules count. Another is booking the whole credit as income in the year of purchase. And a third is losing the paper trail: quotes, invoices, proof of payment, the date the system started, and photos.
Records must be kept for six years from the end of the last tax year they relate to. That’s a floor for this claim, and if the CRA is reviewing the credit you should keep everything until it’s settled.
Provincial programs, utility rebates and grants may also apply, and each one changes how you record the cost. We didn’t verify any of them for this page, so we make no claims about amounts or availability.
Where the numbers come from
The credit rates and dates come from the Canada Revenue Agency’s Clean Technology ITC page, read on 30 September 2026, and the record-keeping period from its page on keeping records. Sales tax rates come from our GST/HST calculator. Examples are illustrations only and this website has no connection with the CRA or any other government body.
Frequently asked questions
What is the Clean Technology ITC rate?
Up to 30% for property acquired and available for use from 28 March 2023 to 31 December 2033, and up to 15% for 2034.
Is the credit taxable income or a reduction of cost?
The CRA lets a claimant choose how it affects the asset's undepreciated capital cost, which changes taxable income. We could not confirm every rule, so ask your accountant before filing.
Can I get the credit if I owe no tax?
The credit is refundable, so it can be paid even when tax owing is nil.
How long do I keep the records?
Six years from the end of the last tax year they relate to, and longer if the CRA is reviewing the claim.
Does this apply to homeowners?
This page covers business claims only. We did not confirm any current federal or provincial home program, so check the government pages directly.
- Canadian tax credits and government benefits explained
The difference between tax credits and benefits in Canada, how they're worked out from your return, and the calculators for the ones people claim most
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.