Bill C-59 Royal Assent: What It Means for Clean Economy ITCs
Bill C-59 (Fall Economic Statement Implementation Act, 2023) received Royal Assent in June 2024, formally enacting Canada's five Clean Economy Investment Tax Credits into law.
What Bill C-59 Enacted
- Clean Technology ITC (30%) — retroactive to March 28, 2023
- Clean Electricity ITC (15%) — effective for eligible property acquired after 2024
- Clean Technology Manufacturing ITC (30%) — effective for eligible property acquired after 2023
- CCUS ITC (up to 50%) — effective for eligible expenditures after 2021
- Clean Hydrogen ITC (up to 40%) — effective for eligible property acquired after 2023
Prevailing Wage and Apprenticeship
Royal Assent triggered the enhanced rate labour requirements. Projects that commenced construction after Royal Assent must comply with prevailing wage and apprenticeship requirements to qualify for the enhanced ITC rate.
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