The CCUS ITC is a refundable tax credit for businesses that invest in carbon capture, utilization, and storage (CCUS) projects. It applies to eligible expenses incurred between January 1, 2022, and December 31, 2040.
The credit supports spending on equipment and property used to:
Capture CO₂ from fuel use, industrial processes, or the air
Transport the captured CO₂
Store or use the CO₂ in industrial processes
To qualify, at least 10% of the captured CO₂ must be:
Stored underground in dedicated geological storage, or
Used to make concrete in Canada or the U.S. using approved storage processes
What Is a Qualified CCUS Project?
Be based in Canada
Be designed to operate for at least 20 years
Capture CO₂ for storage or approved use
Meet the minimum 10% eligible use requirement throughout its review period
Have an initial project evaluation issued
Eligible Expenses
Carbon Capture Equipment
Carbon Transportation Equipment
Carbon Use Equipment
Carbon Storage Equipment
To be eligible:
The project must involve property in CCA Class 57 or 58, or dual-use equipment
The property must be used in a qualified CCUS project
