Clean Technology Manufacturing Investment Tax Credit (CTM ITC)

Insider Tip

Budget 2025 expanded the eligible critical minerals list to include antimony, indium, gallium, germanium, and scandium. If you manufacture clean tech components or process critical minerals, this 30% credit is incredibly generous. Stack with the Clean Technology ITC for installations of your own products.

Success Profile

A battery component manufacturer in Quebec investing $5M in new cathode production equipment, claiming $1.5M in refundable tax credits.

Evaluation Criteria

Entitlement-based — no competitive application or scoring. CRA evaluates claims on: (1) Is the claimant a taxable Canadian corporation? (2) Is the property eligible CTM property as defined in the Income Tax Act? (3) Is the property used primarily (>50%) for eligible activities (clean tech manufacturing/processing or critical mineral extraction/processing)? (4) Is the property situated in and intended for exclusive use in Canada? (5) Was the property new when acquired? (6) Did the property become available for use in the tax year claimed? Determinations are binary — eligible or not.

Application Steps

Required Documents 4

Eligible Expenses 7

• Machinery and equipment used primarily (>50%) for manufacturing or processing clean technology products (solar panels, wind turbines, batteries, EVs, heat pumps, SMRs)
• Machinery and equipment used primarily for extraction and processing of eligible critical minerals (lithium, cobalt, nickel, copper, rare earth elements, graphite, antimony, indium, gallium, germanium, scandium)
• Property attached to buildings used for eligible manufacturing (ventilation systems, specialized wiring)
• Specialized tooling (moulds, dies, jigs, fixtures) used in clean technology manufacturing
• Non-road vehicles and automotive equipment used in eligible manufacturing or mining operations (electric vehicles for factory use, hydrogen-powered mining vehicles)
• Industrial robots and automation equipment for clean technology production lines
• Self-manufactured property: material, labour, and overhead costs attributable to the property (excluding profit margin)

Ineligible Expenses 7

• Equipment used less than 50% for eligible clean technology manufacturing or critical mineral processing
• Used or second-hand equipment (property must be new — not previously used or acquired for use before the taxpayer acquired it)
• Equipment situated outside Canada or not intended for exclusive use in Canada
• Land and buildings (only equipment attached to or within eligible buildings qualifies)
• General-purpose office equipment, furniture, and vehicles not used in manufacturing
• Operating expenses (wages, utilities, rent — only capital costs of property qualify)
• Property for which the Clean Technology ITC has already been claimed (no double-dipping between CT ITC and CTM ITC on the same property)

Intake Periods

Continuous — claimed on annual T2 corporate tax return. No intake windows or application deadlines. Credit available for eligible property that becomes available for use between January 1, 2024 and December 31, 2034. Full 30% rate through 2031; phases down to 20% (2032), 10% (2033), 5% (2034).

Deadline Notes

Available for eligible property that becomes available for use from January 1, 2024 through December 31, 2034. Full 30% rate applies through 2031; phases down 5% per year from 2032 to 2034.

Open Application Portal →

Ineligible Organizations

• Tax-exempt entities (non-profit organizations, registered charities, Crown corporations)
• Non-Canadian corporations (must be taxable in Canada)
• Partnerships and trusts (credit available only to taxable Canadian corporations)
• Sole proprietorships and unincorporated businesses
• Corporations not carrying on business in Canada

Compatible Programs

Clawback Risk

Medium Risk