Updated August 2026 · Verified against Canada Revenue Agency (CRA) guidelines
✨ New Program Tax Credit Offset Est. 2023
Tax Credit Federal Active

Clean Hydrogen Investment Tax Credit

Canada Revenue Agency (CRA)
Maximum Credit
15% of eligible costs
Ongoing (March 28, 2023 to December 31, 2034)
Visit Official Program →
Difficulty
Hard
Payment
Tax Credit Offset
Trend
New Program
First-Timers
—
Credit rate
40%
Clean Hydrogen Investment Tax Credit provides up to 15%–40% refundable tax credit (rate depends on carbon intensity). Refundable investment tax credit of 15% to 40% for taxable Canadian corporations producing clean hydrogen. Applications are accepted on an ongoing basis.
Eligibility check

Can you claim this credit?

Get your instant eligibility verdict plus a head start on the application. Free, no account needed.

Takes about 20 seconds. We use this program’s real eligibility rules.

Want your full match picture across 850+ programs? Take the 2-minute quiz →

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Refundable investment tax credit of 15% to 40% for taxable Canadian corporations producing clean hydrogen. The credit rate varies by the carbon intensity of the hydrogen production pathway: 40% for the cleanest hydrogen (below 0.75 kg CO2e/kg H2), scaling down to 15% for higher-intensity pathways. Eligible pathways include electrolysis, natural gas reforming with CCUS, and methane pyrolysis (added by Budget 2025).

Eligibility Requirements

  • Taxable Canadian corporation
  • Producing clean hydrogen via electrolysis, natural gas reforming with CCUS, or methane pyrolysis
  • NRCan must confirm in writing that the project is a qualified clean hydrogen project (eligible pathway, expected carbon intensity, and for ammonia projects production capacity and transport feasibility)
  • Must meet carbon intensity thresholds for applicable rate tier
  • Equipment must be available for use in Canada
Provinces
All Provinces
Industries
Renewable Energy Clean Technology Manufacturing Industrial
Business Stage
Growth Established Expansion

Quick Assessment

Difficulty
Hard
Competition
Low
First-Timer
Not rated

Funding Details

Amount
15%–40% refundable tax credit (rate depends on carbon intensity)
Type
Tax Credit
Level
Federal
Credit rate
Up to 40% of eligible costs
Deadline
Ongoing (March 28, 2023 to December 31, 2034)

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Dec 31, 2034
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%
Premium See your real odds on this program — and exactly what it takes to win it.
What's in this Playbook

Everything you need to claim Clean Hydrogen Investment Tax Credit

Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.

$19 covers this one program. $39/mo covers every program, plus the workspace that walks you through each application.
Get Premium — $39/mo or just this Playbook — $19 one-time

How to claim

Insider tips, common pitfalls, and what successful applicants look like

Premium
Insider Tip

The 40% rate applies only to hydrogen with carbon intensity below 0.75 kg CO2e/kg H2 — effectively green hydrogen from clean electricity.

Premium See what trips up most applicants for this program — and how to avoid it.

Success Profile

Premium See what successful applicants for this program actually look like.

Evaluation Criteria

Premium See exactly what the program administrators check — so you know where to focus.
Don’t lose this one to a preventable rejection
Common rejection pitfalls, what successful claimants look like, and exactly what the program administrators check
Specialist advisors quote $2,000–$5,000 per program. Premium covers all 850+ for $39/mo.
Get Premium — $39/mo Every program · Application workspace · 30-day money-back
or just this Playbook — $19 one-time

Application Playbook

Step-by-step process, required documents, and expenses

Premium 9 steps 6 docs

Application Steps

1 Submit your project plan to NRCan and obtain written confirmation NRCan must confirm in writing that the hydrogen will be produced from an eligible pathway and that the expected carbon intensity is determined per subsection 127.48(6). Clean ammonia projects must also demonstrate production capacity and transport feasibility. Without this confirmation the project is not a qualified clean hydrogen project.

Required Documents 6

✓ T2 corporate tax return with clean hydrogen ITC schedule
✓ Written confirmation from NRCan that the project is a qualified clean hydrogen project

Eligible Expenses 16

Ineligible Expenses 11

Claim timing

Deadline Notes

Ineligible Organizations

Premium Get the step-by-step application guide — documents, timeline, and what to prepare.

Applying for Clean Hydrogen Investment Tax Credit? Most founders end up needing more than one template — grab the Founder Pack ($59 · saves $27 vs separate) →

Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

Premium 4 partners

Compatible Programs

Clean Technology ITC CCUS ITC Alberta Hydrogen Centre of Excellence NRCan Clean Fuels Fund
Combined Funding Potential See your total funding potential

Clawback Risk

High Risk
Premium See which programs combine with this one — and how much more you could get.

How Clean Hydrogen Investment Tax Credit Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Clean Hydrogen Investment Tax Credit 15% Hard Tax Credit Offset Ongoing (March 28, 2023...
Strategic Response Fund (formerly Str... Minimum $10 million contribution Hard Mixed (Advance + Reimb.) Ongoing — continuous...
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Applications accepted...
Ocean Supercluster Up to $5 million Hard Reimbursement Call-specific — no open...
Ontario Innovation Tax Credit Up to 8% tax credit Moderate Tax Credit Offset Ongoing

Related Programs

Other programs you might be eligible for

Free
Tax Credit

Ontario Made Manufacturing Investment Tax Credit (OMMITC)

Up to $3,000,000 refundable tax credit per year (15% of... · Provincial
 Grant

Ontario Shipbuilding Grant Program (OSGP)

Up to 50% of eligible project costs; total funding from all... · Provincial
 Grant

Ontario Together Trade Fund

Up to $5 million · Provincial

Frequently Asked Questions

Quick answers to the questions founders most often ask about Clean Hydrogen Investment Tax Credit

Free
Can sole proprietors claim this tax credit?
No — only taxable Canadian corporations (not sole props or partnerships) can claim the Clean Hydrogen ITC. The credit is structured as a corporate tax offset.
Is there a minimum equipment cost to qualify?
No — the credit is calculated on the full capital cost of eligible clean hydrogen property that becomes available for use in the year. There is no minimum spend threshold. (Around $200,000 of equipment is our estimate of a realistically claimable project scale, not a rule.)
How long does CRA take to process the credit?
Typically 3-6 months after filing with your T2 corporate tax return. Delays occur if the pathway carbon intensity isn't clearly documented.
Why do most applications get rejected?
Most rejections are due to not meeting the carbon intensity threshold for the desired rate tier (e.g., claiming 40% but exceeding 0.75 kg CO2e/kg H2).
Can I stack this with other federal programs?
Yes — the Clean Hydrogen ITC stacks with the Clean Technology ITC (for renewable energy assets) and CCUS ITC (for capture equipment). Alberta projects also stack with provincial programs.

Browse More Funding

Federal Grants Clean Technology Grants Manufacturing Grants Explore All Programs Take the Quiz