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ARTICLE · 22 DECEMBER 2025

How Canada's New ITC Provisions Work For Non-taxable Entities And Why It's Important

Gowling WLG
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The Canadian government's suite of refundable clean economy investment tax credits (ITCs) represents a shift in how large-scale decarbonization projects in Canada will be financed.

CanadaTax
Laura Gheorghiu
Laura Gheorghiu
Mark R. Giavedoni
Mark R. Giavedoni
Thomas Timmins
Thomas Timmins
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The Canadian government's suite of refundable clean economy investment tax credits (ITCs) represents a shift in how large-scale decarbonization projects in Canada will be financed. Crucially, these provisions extend the financial benefit of the credits to entities that are exempt from income tax, unlocking capital for the national clean energy transition.

For the commercial real estate sector, particularly in the high-emissions environment of Canada's major urban centres, this change is not just welcome—it is important for accelerating the necessary decarbonization of office towers.

The decarbonization imperative for office towers

The urgency to retrofit Canada's commercial buildings to meet ambitious net-zero targets is immediate. Major cities like Toronto, Vancouver, and Montreal rely heavily on older, energy-intensive office stock. Upgrading these assets—by replacing natural gas boilers with high-efficiency air-source, deep water or ground-source heat pumps

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