Clean technology investment tax credit

Buyers of businesses that own clean energy equipment meet this credit when they ask what was claimed and what could be added back. Section 127.45 builds the credit from a specified percentage of the capital cost of clean technology property acquired in the year. The CRA says it provides the claim on a corporate or trust return, and Natural Resources Canada provides engineering and scientific guidance on the property. See whether SR&ED credits survive a change of control.

What qualifies, and what happens on a sale

The definition requires property situated in Canada, intended for use exclusively in Canada, and not used or acquired for use or lease for any purpose before the taxpayer acquired it. It must also fall within listed paragraphs of Class 43.1 and 43.2 or Class 56, among others. Subsection (12) adds an amount to tax when the conditions in subsection (11) are met, including that the taxpayer became entitled to the credit for the property and that the property, or another property incorporating it, is converted to a non-clean technology use, exported from Canada or disposed of. Subsection (13) excepts some transfers between related taxable Canadian corporations.