Carbon Capture, Utilization, and Storage Investment Tax Credit (CCUS ITC)
Eligibility & Details
What this program funds and who can apply
Program Description
Refundable investment tax credit ranging from 37.5% to 60% for taxable Canadian corporations with qualified carbon capture, utilization, and storage projects. The highest rate (60%) applies to direct air capture equipment. Covers eligible carbon capture, transport, storage, and use equipment for projects capturing at least 10% of CO2 for eligible use (dedicated geological storage or specified industrial use). Budget 2025 extended full rates by 5 years to 2035.
Eligibility Requirements
- Taxable Canadian corporation
- Qualified CCUS project capturing at least 10% CO2 for eligible use
- CCUS project plan must be registered with CRA
- Must meet knowledge-sharing requirements (publish results)
Quick Assessment
Funding Details
- Amount
- 37.5%–60% refundable tax credit (60% direct air capture; 50% other carbon capture equipment; 37.5% transport, storage, and use)
- Type
- Tax Credit
- Level
- Federal
- Co-Funding
- Up to 60% of eligible costs
- Deadline
- Ongoing (retroactive to January 1, 2022; full rates to 2035 per Budget 2025)
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipDirect air capture equipment gets the full 60% rate — one of the most generous tax credits in Canadian history. Budget 2025 extended full rates by 5 years to 2035, giving more runway. The knowledge-sharing requirement means you must publish results, but the credit value far outweighs this. Get the CCUS project plan registered early.
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Success Profile
A mid-size Alberta industrial company investing $5M in carbon capture equipment for its manufacturing facility, claiming $2.5M in refundable tax credits (50% rate for non-DAC capture). Also applicable to concrete producers using captured CO2, food-grade CO2 suppliers, and greenhouse operators using CO2 enrichment.
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Evaluation Criteria
Entitlement-based — not competitive. Any taxable Canadian corporation with a qualifying CCUS project meeting the legislative requirements can claim the credit. NRCan evaluates the technical eligibility of the CCUS project plan (process must meet the legislated definition of a CCUS process). CRA verifies the tax claim. No merit-based competition or scoring. The barriers are technical and administrative, not competitive.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 6
Eligible Expenses 8
- Carbon capture equipment for direct air capture (60% rate)
- Other carbon capture equipment for point-source capture (50% rate)
- CO2 transportation equipment including pipelines and compression systems (37.5% rate)
- Dedicated geological storage equipment and injection systems (37.5% rate)
- Equipment for eligible CO2 use in concrete production in Canada or the US (37.5% rate)
- Dual-use equipment with qualifying CCUS components (proportional claim)
- Front-End Engineering and Design (FEED) study costs related to CCUS equipment
- Refurbishment costs (limited to 10% of development-phase expenditures)
Ineligible Expenses 5
- Equipment used for enhanced oil recovery (EOR)
- Equipment for natural gas processing or acid gas injection
- Construction equipment, furniture, and office materials
- Property already claimed under another clean economy ITC (Clean Technology ITC, Clean Hydrogen ITC) — cannot stack multiple ITCs on the same property
- Expenditures where less than 10% of captured CO2 is used in an eligible manner
Intake Periods
Ongoing — no intake periods. Retroactively available from January 1, 2022. Full credit rates through 2035 (Budget 2025 extension). Reduced rates 2036-2040. Program ends December 31, 2040. Claim filing deadline: later of December 31, 2026 and one year from filing due date (Bill C-15).
Deadline Notes
Retroactively available from January 1, 2022. Full rates maintained through 2035 (Budget 2025 extended by 5 years). Phase-down rates from 2036-2040. Register your CCUS project plan early to ensure eligibility before major capital expenditures.
Open Application Portal →Ineligible Organizations
- Non-incorporated entities (individuals, partnerships without corporate partners filing)
- Non-taxable entities (Crown corporations, tax-exempt organizations)
- Foreign corporations without taxable Canadian presence
- Organizations using captured CO2 primarily for enhanced oil recovery
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Medium RiskSee which programs combine with this one — and how much more you could get. Unlock with Premium →
How Carbon Capture, Utilization... Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Carbon Capture, Utilization, and Stor... | 37.5%–60% refundable tax credit | Hard | Tax Credit Offset | Ongoing (retroactive to... |
| Emissions Reduction Alberta (ERA) — I... | up to $15,000,000 | Hard | Reimbursement | 2026 round OPEN |
| Energy Innovation Program | Up to $4 million | Hard | Reimbursement | Call-specific deadlines... |
| Strategic Response Fund (formerly Str... | Up to $50 million | Hard | Mixed (Advance + Reimb.) | Ongoing — continuous... |
| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Annual intake window.... |
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