ITC and PTC Steps
Step-by-step guide to the Investment Tax Credit (ITC) and Production Tax Credit (PTC) process for Canadian clean energy projects, from initial eligibility assessment through CRA filing and refund.
Step-by-Step Process
- Eligibility Assessment — Determine which ITC(s) apply to your project and technology type
- Capital Cost Analysis — Identify eligible versus ineligible capital expenditures
- Labour Compliance Setup — Implement prevailing wage and apprenticeship tracking before construction
- SOP Development — Build a Standard Operating Procedure for all contractors and subcontractors
- Evidence Collection — Gather invoices, purchase orders, shipping records, installation documentation, and payment verification
- Apprenticeship Ratio Verification — Confirm ratios are met for each designated trade
- Compliance Package Assembly — Organize all documentation into a CRA-ready format
- T2 Filing — File the corporate T2 return with Schedule 31 (ITC) or applicable form
- CRA Review Response — Respond to any CRA information requests within required timelines
- Refund Receipt — Receive the ITC refund or apply against taxes payable
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