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)
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.
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Eligibility & Details
What this program funds and who can apply
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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
Industries
Business Stage
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
--%
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How to claim
Insider tips, common pitfalls, and what successful applicants look like
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Insider TipThe 40% rate applies only to hydrogen with carbon intensity below 0.75 kg CO2e/kg H2 — effectively green hydrogen from clean electricity.
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See what trips up most applicants for this program — and how to avoid it.
Success Profile
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Evaluation Criteria
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The pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓
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.
- 6-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 9-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 4-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what the program administrators check
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Application Playbook
Step-by-step process, required documents, and expenses
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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
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
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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
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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.) | Between intakes — the... |
| Ocean Supercluster | Up to $5 million | Hard | Reimbursement | Continuous intake (Core... |
| Ontario Innovation Tax Credit | Up to 8% tax credit | Moderate | Tax Credit Offset | Ongoing |
Related Programs
Other programs you might be eligible for
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Frequently Asked Questions
Quick answers to the questions founders most often ask about Clean Hydrogen Investment Tax Credit
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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.
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Full Playbook: Clean Hydrogen Investment Tax Credit
9 steps · 6 docs · reviewer insights