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Incentives for going green

Find out if your green initiatives qualify for tax savings

Even in these challenging economic times, governments across Canada at the federal and provincial levels are offering a range of tax deductions and funds to help offset the costs of a company’s environmental initiatives. 

Forward-thinking organizations that are taking steps to invest in greener technologies and energy-efficient operations can apply for a wide variety of incentives and tax credits. Eligible initiatives include improvements in energy efficiency, investments in property, plant and equipment, research and development into renewable energy, and innovations in industrial or manufacturing processes. 

This table lists funding programs and tax credits. To find information relating specifically to your business, simply enter in a search term. Or select your Industry and Jurisdiction to refine the list.

For more information about how to take advantage of these incentives, please contact a Deloitte tax professional.

Search table   

Industry Jurisdiction Program Funding entity
       
   
Energy & Resources Alberta Research and Technology Program
Program fund of $16 million per year. Grants will typically be over $50,000 for one-year projects, to millions of dollars for large, multi-year pilot and demonstration projects. AERI also....more.. supports individual inventors with smaller grants intended to help inventors gain assistance with engineering designs, building prototypes and getting patents. Inventions should have the potential to make a significant impact on the energy industry and have an industry supporter. Grants are typically less than $50,000 for projects that last less than one year. Program areas: bitumen upgrading, clean carbon or coal, improved recovery, renewables, CO2 and emissions, and water use.
Open to universities, research organizations and industry.
Alberta Energy Research Institute (AERI)
Technology, Media & Telecommunications British Columbia Clean Tech Innovation Venture Capital Program
30% fully refundable annual tax credits available to investors in early-stage clean technology companies operating in B.C. Amount will increase from $5 million to $7.5 million....more... Maximum credit per investor per year is $60,000. Companies must keep capital raised under the program invested for five years.
Technology and Economic Development
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
British Columbia PST and other reductions/exemptions
For domestic and commercial activities involving energy savings and alternative fuels. Property (School) tax exemption for specified improvements to eligible wind power or....more.. hydroelectric power projects. Exemption from passenger vehicle rental tax for rentals of eight hours or less. Motor Fuel Tax exemptions and reductions for natural gas and alcohol-based fuels (blends of gasoline or diesel fuel and at least 85% ethanol or methanol).
British Columbia
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
British Columbia R&D Tax Credits and Deductions
10% non-refundable B.C. income tax credit for eligible expenditures on qualified R&D; 100% immediate deduction of eligible R&D expenditures on qualified R&D 100%....more.. immediate deduction of eligible R&D expenditures to reduce B.C. and federal taxable income.
British Columbia
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
British Columbia Separate Class Election for Depreciating Machinery and Equipment (Provincial and Federal)
Companies may elect to put individual capital assets in separate classes for income tax depreciation purposes instead of pooling them into broad classes established for claiming Capital
....more..Cost Allowance. The benefit is accelerated realization of “terminal losses” when disposing of specific assets having a short economic life. Eligible assets are: production machinery and equipment, and telecom equipment.
British Columbia
Energy & Resources Federal Accelerated CCA - Carbon Capture and Storage
In the 2009 federal budget, the government proposed public consultations for possible accelerated Capital Cost Allowance for assets used in carbon capture and storage.
Canada
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
Federal Accelerated CCA - Clean Energy Generation
Advantageous Capital Cost Allowance rates available for certain types of assets used for renewable energy. Class 43.2 (50% declining balance basis) for specified clean energy....more.. equipment acquired before 2020 and meeting higher efficiency standards.
Class 43.1 (30% declining balance basis) for specified clean energy equipment meeting lower efficiency standards.
Canada
Manufacturing Ontario Advanced Manufacturing Investment Strategy
A $500-million fund seeking investments to increase the innovative capacity of Ontario\'s manufacturing sector. Interest-free loan for up to five years; interest at the....more.. province\'s cost of borrowing +1%; will sit subordinate to other senior lenders; 30% of total project costs, maximum of $10 million per project.
Ministry of Economic Development and Trade
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
Federal Canadian Renewable and Conservation Expense (CRCE)
To promote development and conservation of sources of renewable energy. A CRCE can include intangibles (feasibility studies, negotiation, regulatory, site approval costs, site....more.. prep and testing, etc.) expenses on projects where 50% or more tangible costs are included in Class 43.1 or 43.2. Fully deductible, indefinite carryforward, flow-through shares.
Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Federal Clean Energy Fund
Fund of $1 billion over five years for clean energy technologies: $150 million over five years for research, $850 million over five years for development and demonstration of promising....more.. technologies.
Project proposals due September 14, 2009.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Federal ecoEnergy for Biofuels
Incentive rates of up to $0.10/litre for alternatives to gasoline and $0.20/litre for alternatives to diesel.
Both existing and proposed facilities that produce....more.. renewable alternatives to gasoline and diesel in Canada are eligible for this program (facilities must be constructed before March 31, 2011). Requires ownership or advanced development stage of engineering over an individual plant or facility that produces, in Canada, renewable alternatives to gasoline or diesel.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Federal ecoEnergy for Renewable Heat
Investment of $36 million over four years to increase the use of renewable thermal energy, help develop renewable thermal energy industry capacity and contribute to cleaner air by....more.. displacing fossil fuel-based energy use for space heating and cooling, and water heating in Canadian buildings. Incentives to purchasers of solar heating systems in the industrial, commercial and institutional sectors set at 25% of the purchase, installation and certain other costs of a qualifying system. Ends March 31, 2011.
Open to businesses, industries and public institutions.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Federal ecoEnergy for Renewable Power
Investment of $1.48 billion to increase Canada’s supply of clean electricity from renewable sources such as wind, biomass, low-impact hydro, geothermal, solar photovoltaic and ocean....more.. energy. Incentive of $.01 per kilowatt hour for up to 10 years to eligible low-impact, renewable electricity projects constructed over the next four years. $200 million provided in 2009 budget; $100 million already committed. Ends March 31, 2011.
Open to Canadian utilities, businesses, municipalities, institutions and organizations.
Natural Resources Canada
Consumer Business
Financial Services
Real Estate
Life Sciences & Health Services
Public Sector
Federal ecoEnergy Retrofit Incentive for Buildings
Grants of up to 25% of project costs to a maximum of $50,000 per application and $250,000 per company to improve energy efficiency of commercial buildings. Program ends....more.. March 31, 2012, subject to availability of funds.
Open to small and medium-sized businesses of less than 500 employees.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Public Sector
Federal ecoEnergy Retrofit Incentive for Industry
Grant of up to 25% of project costs to a maximum of $50,000 per application and $250,000 per company to implement energy-saving projects....more...
Open to small and medium-sized businesses of less than 500 employees.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Public Sector
Federal ecoEnergy Technology Initiative - No longer accepting proposals
$230 million to fund research, development and demonstration to support the development of next-generation energy technologies needed to break through to emissions-free fossil fuel....more.. production, as well as for producing energy from other clean sources, such as renewables and bio-energy. The incentive will also support the use and integration of clean energy in end-use sectors such as buildings and community systems. No further calls for proposals under the ecoEnergy Technology Initiative are anticipated.
Natural Resources Canada
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Federal Emerging Technologies Program
Funding assistance for technical assessments, prototype development and field trials, repayable from revenue or cost savings resulting from the project. This program is winding down.
Natural Resources Canada
Energy & Resources Federal Green Infrastructure Fund
$1 billion over five years for sustainable energy generation and transmission, municipal wastewater and solid waste management infrastructure projects....more...
Open to provinces, territories, local or regional governments; public sector bodies, non-profit organizations and private companies, either alone or in partnership with a province, territory or a government.
Infrastructure Canada
Financial Services
Consumer Business
Real Estate
Life Sciences & Health Services
Technology, Media & Telecommunications
Public Sector
Federal Green Municipal Fund
To support partnerships between the public and private sector and to encourage municipal actions to improve air, water and soil quality, brownfields remediation and to reduce greenhouse....more.. gas emissions. Funding options range from a loan of up to 25% of eligible costs to a loan and grant combination of up to 80% and up to 50% of eligible costs, respectively. Funding provided for capital implementation projects, feasibility studies and sustainable community planning projects. Funding provided through structured call for proposal for specified projects of interest.
Open to municipal governments, not-for-profit organizations, private companies or individuals.
Federation of Canadian Municipalities
Manufacturing,
Life Sciences & Health Services
Real Estate
Technology, Media & Telecommunications
Energy & Resources
Federal Industrial Research Assistance Program (IRAP)
Designed to help small and medium-sized enterprises advance new technologies and processes. The program fits well with Canada\'s existing SR&ED program, as many of the....more.. criteria of the SR&ED program are applicable to the IRAP program. Up to $1 million in funding; 75% cost shared for well qualified projects. Upwards of $20,000 for market assessment and $30,000 for employment funding could be available.
Open to small and medium-sized enterprises of less than 500 employees; technical staff must be paid a salary (T4 earnings). Projects must clearly demonstrate innovation.
National Research Council
Consumer Business
Financial Services
Real Estate
Public Sector
Life Sciences & Health Services
Technology, Media & Telecommunications
Federal Scientific Research and Experimental Development program
The single largest source of federal support for industrial research and development (R&D), this tax incentive program encourages Canadian businesses of all sizes, and in all sectors, to....more.. conduct R&D in Canada. Cash refunds and/or tax credits for expenditures on eligible R&D work done in Canada.
100% deduction of eligible expenditures plus 20%-35% additional investment tax credit. In the 2008 federal budget, limits increased for qualifying Canadian-controlled private corporations (CCPCs) to $3 million; taxable phase-out limit increased to $700,000; taxable capital phase-out limit increased to $50 million; some SR&ED carried on outside Canada.
Most provinces have a 10-15% additional credit.
Canada Revenue Agency
Consumer Business
Financial Services
Real Estate
Public Sector
Life Sciences & Health Services
Technology, Media & Telecommunications
Federal Sustainable Development Technology Canada (SDTC)
Sustainable Development Tech Fund supports late stage and pre-commercial demo of clean-tech solutions; grant of up to 33% of eligible costs....more...
The $500-million NextGen Biofuels Fund supports first-of-kind large demonstration scale facilities for the production of next-generation renewable fuels and co-products; repayable contribution of up to 40% or a maximum of $200 million.
Must have demonstrated technology at pre-commercial pilot scale and must be working collaboratively with one or more research or industrial partners. Organizations can apply twice a year, in September and March. Projects must generate incremental intellectual property and have benefits that extend beyond the applicant\'s organization.
Sustainable Development Technology Canada (SDTC)
Manufacturing Manitoba Green Energy Equipment Tax Credit
Credit for manufacturers who make and sell qualifying property in Manitoba after April 4, 2007, and before 2019, equal to an amount not exceeding 10% of the selling price of the....more.. qualifying property. The rate varies with different classes of property and is prescribed by regulation; credit restricted to ground source heat pump systems.
Credit for purchasers of qualifying property used to produce energy in Manitoba from a renewable resource. Credit cannot exceed 10% of the purchase price, less any credit that an eligible manufacturer has claimed or may claim for the qualifying property. The rate varies with different classes of property and is prescribed by regulation.
Manitoba
Manufacturing Manitoba Green Energy Manufacturing Tax Credit
10% refundable credit for purchase of new equipment used to generate renewable energy. Qualifying property includes equipment for wind power, solar energy, geothermal energy....more.., hydrogen fuel cells; excludes transmission and distribution systems and storage equipment.
Manitoba
Consumer Business
Financial Services
Real Estate
Public Sector
Life Sciences & Health Services
Technology, Media & Telecommunications
Nova Scotia Energy Tax Credit
Tax credit of up to 25% of capital cost of acquisitions or additions to eligible property in given year. Eligible property includes property located in Nova Scotia, including....more.. offshore areas, acquired or added after June 30, 2006 and falls into class 43.1 or 43.2. Reduction may not exceed lesser amount of the credit and 50% of the amount of Nova Scotia Large Corporations Tax otherwise payable for the year; unused tax credit balance is non-refundable, and may be carried forward seven years.
Nova Scotia
Consumer Business
Financial Services
Real Estate
Public Sector
Life Sciences & Health Services
Technology, Media & Telecommunications
Ontario Ontario Current Cost Adjustment
One time deduction from Ontario taxable business income for 30% of cost of equipment used to reduce or eliminate water and air pollution.
Ontario
Energy & Resources
Manufacturing
Financial Services
Real Estate
Technology, Media & Telecommunications
Public Sector
Ontario Green Energy Act
Legislation for delivery and creation of market for energy from renewable sources, such as wind, solar, tidal and biogas. Also, loans and grants for investors in renewables....more...
Open to municipalities, corporations, individuals, other investors in renewables.
Ministry of Energy and Infrastructure
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Life Sciences & Health Services
Ontario Innovation Demonstration Fund
Discretionary, non-entitlement funding program that focuses on the commercialization and initial technical demonstration of globally competitive, innovative green technologies....more.., processes and products. The 2009 Ontario budget announced an additional $50 million over four years. Financial support up to 50% of total eligible project costs, from $100,000 to $4 million.
Open to Ontario companies with eligible projects that will be undertaken in Ontario, and where the project will result in full-scale commercialization in Ontario.
Ministry of Research and Innovation
Technology, Media & Telecommunications
Life Sciences & Health Services
Ontario Next Generation of Jobs Fund - Biopharmaceutical Investment Program
Grant of up to 20% of total eligible project costs. To encourage brand name pharmaceutical firms and advanced-stage human health biotech firms (e.g., vaccine manufacturers) to....more.. establish and grow their research and development and/or their advanced manufacturing investments in Ontario.
Company\'s primary source of business must come from products that have received marketing approval by way of Health Canada New Drug submission (or international equivalent), situated in Ontario, minimum total eligible project costs of $5 million.
Ministry of Research and Innovation
Energy & Resources
Consumer Business
Technology, Media & Telecommunications
Ontario Next Generation of Jobs Fund - Jobs and Investment Program
Grant of up to 15% of total eligible project costs. Projects must either create or retain at least 100 jobs, or invest $25 million over five years....more...
Open to Canadian and foreign incorporated companies provided they have an incorporated Ontario or Canadian subsidiary.
Ministry of Research and Innovation
  Ontario Next Generation of Jobs Fund - Strategic Opportunities Program
Grants of up to 25% of total eligible project costs. This program has closed.
Ministry of Research and Innovation
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
Ontario Ontario Business-Research Institute (OBRI) Tax Credit
Ontario corporations are able to claim a 20% refundable tax credit for qualifying research and development (R&D) expenditures incurred in Ontario as part of an eligible....more.. research contract with an eligible Ontario research institute.
Ontario Business-Research Institute
Consumer Business
Financial Services
Real Estate
Public Sector
Life Sciences & Health Services
Technology, Media & Telecommunications
Ontario Ontario Centres of Excellence
Goal is to move research into the marketplace by bringing together academia and industry. Focus is to work with early-stage companies to encourage research and....more.. development (R&D) activities in Ontario, and to allow students in Ontario universities the opportunity to work on practical projects in order to develop a master\'s or PhD thesis. Funding provided to the academic partner, not the industry partner. Funding used for university resources (not including professor salaries) including salaries for master\'s and PhD students. Various levels of funding available from project feasibility up to seed investment: up to $500,000; research ($13,000 - $50,000), commercialization ($25,000 - $500,000) and talent ($3,500 - $40,000).
Ontario Centres of Excellence
Energy & Resources
Technology, Media & Telecommunications
Consumer Business
Real Estate
Life Sciences & Health Services
Ontario Ontario Co-op Education Tax Credit
Depending on hiring practices, a refundable tax credit for each qualifying work placement ending in the tax year equal to the lesser of: 10%-15% of eligible expenditures made for....more.. work placement and $1,000 (minimum employment of 10 weeks).
Ontario
Energy & Resources
Technology, Media & Telecommunications
Public Sector
Ontario Ontario Emerging Technologies Fund
The $250 million fund will co-invest (along with qualified venture capital funds and other private investors) directly into companies in high-growth sectors that are aligned with Ontario's....more.. Innovation Agenda: clean technology, life sciences and advanced health technology, and digital media and information and communications technology.
The fund is designed to help innovative technology companies find the capital they need to grow in Ontario. It was announced by the province in March 2009 in response to the current economic conditions and the reduction in investment capital available to emerging and high-growth companies.
Ministry of Research and Innovation
Energy & Resources
Technology, Media & Telecommunications
Consumer Business
Real Estate
Life Sciences & Health Services
Ontario Ontario Innovation Tax Credit (OITC)
Small and medium-sized Ontario corporations are able to claim a 10% refundable tax credit on qualifying research and development (R&D) expenditures in Ontario.
Ontario
Energy & Resources
Technology, Media & Telecommunications
Consumer Business
Real Estate
Life Sciences & Health Services
Ontario Ontario New Technology Tax Incentive (ONTTI)
A 100% immediate write-off of the eligible cost of qualifying intellectual properties acquired from third parties for implementing an innovation or an innovation or an invention in the....more.. company\'s business in Ontario. The expenditure limit for a taxation year is $20 million. A taxpayer\'s total ONTTI deduction for a taxation year is equal to the total amount of CCA allowed in respect of each ONTTI property. Neither the half-year rule nor the available for use rule applies.
Ontario
Energy & Resources
Technology, Media & Telecommunications
Consumer Business
Real Estate
Life Sciences & Health Services
Ontario Ontario Research and Development Tax Credit
For taxation years ending after 2008, Ontario corporations are able to claim a 4.5% non-refundable tax credit on qualifying research and development (R&D) expenditures in Ontario.
Ontario
Energy & Resources
Technology, Media & Telecommunications
Ontario Ontario Venture Capital Fund
This $205-million fund is a limited partnership between Ontario, OMERS Capital Partners, RBC Capital Partners, Manulife Financial, Business Development Bank of Canada and....more.. TD Bank Financial Group. The fund manager is TD Capital Private Equity. Up to 20% of capital available for co-investment in Ontario-based companies.
Ministry of Research and Innovation
Life Sciences & Health Services
Technology, Media & Telecommunications
Manufacturing
Consumer Business
Ontario Tax exemption for commercialization (OETC)
This is a 10-year corporate income tax/corporate minimum tax exemption for new corporations commercializing intellectual property in bio-economy, clean tech, advanced health and....more.. telecommunications. Includes development of prototypes, marketing, manufacturing products related to intellectual property.
Available for corporations incorporated after March 24, 2008, and before March 25, 2012.
Ontario
Energy & Resources
Technology, Media & Telecommunications
Consumer Business
Real Estate
Life Sciences & Health Services
Quebec Income Tax Holiday for Commercialization of IP
Ten-year income tax holiday.
Open to corporations incorporated after March 19, 2009, and before April 1, 2014, with a certificate with the Ministère....more.. du Développement économique, de l\'Innovation et de l­\'Exportation (MDEIE), dedicated to the commercialization of intellectual property developed in Quebec universities and Quebec public research.
Quebec
Public Sector Quebec Refundable Tax Credit for Private Partnership Pre-competitive Research
This 35% tax credit applies in whole or in part to eligible SR&ED expenditures, notably salaries, current expenses and capital expenses. It is granted to each private business involved....more.. in the partnership.
To benefit from the tax credit, the businesses must obtain a certification of eligibility from the Ministère du Développement économique, de l\'Innovation et de l\'Exportation (MDEIE) certifying that the contract signed between the parties has the characteristics of a partnership agreement and that their R&D project is a pre-competitive research project.
Quebec
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
Quebec Tax Credit for Salaries and Wages
For a corporation with assets of less than $25 million for its preceding taxation year, the tax credit rate is 35% on the first $2 million of eligible salaries and wages. If assets exceed....more.. $25 million, rate drops progressively, reaching 17.5% when assets reach $50 million. For this purpose, assets of associated corporations on a worldwide basis must be included.
The tax credit rate is also 17.5% on eligible salaries and wages in excess of the annual $2 million limit and for corporations controlled by a non-resident of Canada.
A corporation carrying on business in Canada and performing SR&ED activities in Quebec or having such activities performed on its behalf in Quebec may claim a refundable tax credit on salaries and wages paid in Quebec.
Quebec
Public Sector
Technology, Media & Telecommunications
Manufacturing
Saskatchewan Green Technology Commercialization Grant
Funding to promote the development and overcome barriers to commercialization of new and existing green technology in small and medium-sized enterprises. Projects with costs....more.. between $10,000 and $200,000 are eligible to receive funding up to 50% of eligible project costs to a maximum of $100,000. Projects with costs over $200,000 are eligible to receive up to 50% of the first $200,000 and 25% of eligible costs beyond that to a maximum of $250,000.
Open to new and existing small to medium-sized businesses registered in Saskatchewan. Non-profit organizations, non-governmental organizations, academic researchers and municipal groups may partner with a business in working towards commercialization of a product or service.
Saskatchewan
Public Sector Saskatchewan Sustainable Communities Grant
Up to $100,000 in funding for non-governmental organizations, communities and aboriginal organizations in projects addressing climate change, water conservation, source water....more.. protection, green agricultural practices, ecosystem conservation, sustainable development awareness and ecotourism.
Saskatchewan
Technology, Media & Telecommunications
Life Sciences & Health Services
Energy & Resources
Public Sector
Manufacturing
Nova Scotia
New Brunswick
PEI
Newfoundland
Atlantic Innovation Fund
The Atlantic Innovation Fund is designed to focus on areas of strategic importance to the region that offer the most potential for future growth, including information technology, ocean....more.. technologies, aquaculture, biotechnology, health and medical technologies, and environmental technologies. Investments could also strengthen the region\'s ability to develop technologies that allow natural resource industries, such as oil and gas, agriculture and agri-food, fisheries, forestry and mining, to maintain and increase their competitiveness.
Open to universities, research institutions, and private sector businesses.
Atlantic Canada Opportunities Agency
Consumer Business
Energy & Resources
Financial Services
Life Sciences & Health Services
Manufacturing
Public Sector
Real Estate
Technology, Media & Telecommunications
Federal MITACS Accelerate Program
Cost-sharing internship program that connects graduate students and post-doctoral fellows with businesses to stimulate commercial innovation.
MITACS