RC115 NovDec 2024 - Magazine - Page 35
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Clean economy investment tax credits (ITCs) are aimed at
incentivizing the decarbonization of the economy in Canada.
es, they may receive a further 10 per cent ITC in the form
of the recently announced electric vehicle ITC (the EV
ITC). This ITC will be available for the cost of buildings
where the project proponent has invested (and claimed
the CTM ITC) in three di昀昀erent segments of the EV supply
chain, including EV assembly, battery production, and
cathode active material production (or has claimed the
CTM ITC in two out of 3 of these segments, and holds a
“qualifying minority interest” in a corporation that has
claimed the CTM ITC in the third segment).
The Clean Hydrogen ITC (the Clean Hydrogen ITC) is
an ITC available for certain clean hydrogen and ammonia
production expenditures. The speci昀椀ed percentage of the
ITC available is dependent on the lifecycle carbon intensity of the project, as calculated in kg CO2 emissions per kg
H2 produced. The speci昀椀ed percentages based on carbon
intensity are:
RENEWCANADA.NET
40
PER CENT
for projects with carbon intensity below
0.75 KG CO2/ KG H2
25
PER CENT
for projects with carbon intensity between
0.75 – 2.0 KG CO2 / KG H2
15
PER CENT
for carbon intensities between
2.0 – 4.0 KG CO2 / KG H2
15 PER CENT
SPECIFIED PERCENTAGE
CLEAN AMMONIA EQUIPMENT
(i.e., expenditures for equipment to
turn clean hydrogen into clean ammonia)
NOVEMBER/DECEMBER 2024– RENEW CANADA 35
