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Ministry of Finance

Media Relations
250 208-0706

David Karn

Media Relations
Ministry of Environment and Climate Change Strategy
250 213-3760

Backgrounders

Applying for the Clean Buildings Tax Credit

The Clean Buildings Tax Credit is a refundable income-tax credit for qualifying retrofits that improve the energy efficiency of eligible commercial and multi-unit residential buildings.

For owners to be eligible, buildings must have four or more units.

Eligible building types include:

  • a multi-unit residential building consisting of four or more dwellings
  • accommodation (only includes buildings classified as class 6 property under the Assessment Act)
  • food services
  • logistics and warehousing
  • long-term care
  • offices
  • retail – food
  • retail – other
  • other buildings classified as class 6 or class 8 property under the Assessment Act

Improvements that are eligible for the tax credit must reduce energy use intensity of the multi-unit building. Eligible improvements include:

  • heating, ventilation and air-conditioning systems
  • fans
  • interior and exterior lighting devices
  • service water heating equipment
  • pumps
  • receptacle loads and miscellaneous equipment
  • elevators and escalators
  • building envelope, including improvement to the insulation
  • permits required for, or for the rental of equipment used in the course of, the qualifying retrofit
  • cost of work by qualified person certifying the retrofit

The Clean Buildings Tax Credit is claimed on a business’s income tax return filed with the Canada Revenue Agency. The credit must be claimed no later than 18 months after the end of the tax year after the tax year in which the retrofit was completed.