Canada's Department of Finance has opened consultations until 13 March 2026 on adding domestic content requirements to clean technology tax credits, following similar measures in the US aimed at strengthening local supply chains and manufacturing.
Canada’s Department of Finance, in a news release on 13 February 2026 ,announced that it launched consultations on the possibility of introducing a domestic content requirement under the Clean Technology and Clean Electricity investment tax credits (ITCs).
These ITCs are designed to help Canada transition to a net-zero economy by supporting new investments in clean or low-emitting energy systems—attracting new projects and high-paying careers.
Other countries, including the US, have incorporated domestic content requirements in their clean electricity tax credits to encourage the use of domestic materials and equipment. In Canada, stakeholders have called for similar measures to strengthen domestic supply chains and support Canadian manufacturers.
The consultations page outlines key questions for consideration, including the possible design of the domestic content requirement, as well as potential complexity, administrative burden, and supply chain challenges.
Canadians and stakeholders are encouraged to send their comments to cleangrowthitc-ciicroissancepropre@fin.gc.ca by 13 March 2026.
The Clean Technology ITC provides a refundable tax credit of up to 30% to businesses for eligible investments in certain clean electricity generation systems (such as wind and solar energy systems), stationary electricity storage systems, low-carbon heating equipment (such as air-source heat pumps) and non-road zero-emission vehicles and related recharging and refuelling equipment. This measure is already available to taxpayers.
The Clean Electricity ITC would provide a refundable tax credit of up to 15% to taxable and certain non-taxable corporations (including provincial and territorial Crown corporations) for eligible investments in low-emitting electricity generation systems, stationary electricity storage systems and inter-provincial transmission equipment. This measure will be available once legislation included in the Budget 2025 Implementation Act, No.1, receives Royal Assent.
