BC Clean Tech, Green & Manufacturing Credits (2025 Guide)

British Columbia is at the forefront of Canada's clean technology movement, with a dynamic ecosystem of green startups, advanced manufacturers, and established energy firms. As part of its ambitious climate action plan, BC aims to cut greenhouse gas emissions, promote low-carbon industry, and accelerate the adoption of sustainable technologies. To support these goals—and fuel business growth—the province offers a robust suite of tax credits, grants, and accelerated depreciation for companies investing in clean tech, energy efficiency, and modern manufacturing.

  • Why does this matter? BC’s clean tech sector contributes over $3 billion annually and supports thousands of jobs. Provincial incentives not only reduce the cost of new investments, but also attract additional federal funding, drive competitiveness, and position BC as a global leader in climate solutions.
  • Who can benefit? BC-based corporations, manufacturers, cleantech firms, processors, renewable energy companies, and businesses investing in eligible green or energy-efficient equipment.
  • How much is available? Tax credits range from 10% to 100% of eligible expenditures (stacked), with exemptions for PST, accelerated capital cost allowance, and direct cash grants for major projects.
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Key BC Clean Tech, Green & Manufacturing Incentives

Clean Technology Tax Credit (CTTC)
  • Eligibility: BC corporations investing in new, eligible clean tech property (solar, wind, energy storage, low-carbon process equipment, etc.). Equipment must be acquired new, used primarily in BC, and directly support clean tech manufacturing or energy production.
  • Credit Amount: Up to 10% of eligible expenditures, refundable.
How to Claim:
  1. Identify and purchase eligible clean technology property for use in BC.
  2. Maintain original invoices, proof of payment, and installation/commissioning records.
  3. Complete the BC CTTC Schedule and file with your T2 Corporate Tax Return.
  4. Retain supporting documentation for audit.
Stackable with federal clean tech CCA and grants. Documentation of purchase and usage required.
Calculation Example: If you purchase $400,000 in new solar panels and battery storage for your manufacturing site, you may receive a $40,000 CTTC refund (10% x $400,000), plus additional federal incentives.
PST Exemptions for Manufacturing & Clean Tech Equipment
  • Eligibility: All BC businesses purchasing qualifying machinery and equipment for manufacturing, processing, clean technology, pollution control, or clean energy generation.
  • Benefit: Full PST (7%) exemption on eligible equipment. Applies to new and expanding operations.
How to Claim:
  1. At point of sale, provide your PST exemption certificate (FIN 492) to the supplier.
  2. If PST was paid in error, submit a PST Refund Application with invoices and proof of use.
  3. Retain all purchase and equipment usage documentation for audit.
Claimed at point of sale or via refund application. Retain invoices and equipment use evidence for audit.
Calculation Example: On a $500,000 equipment purchase, the PST exemption saves $35,000 (7% x $500,000) instantly.
Accelerated Capital Cost Allowance (CCA)
  • Eligibility: BC businesses acquiring eligible clean energy or manufacturing assets (Class 43.1/43.2 equipment such as solar, wind, energy storage, manufacturing automation).
  • Benefit: Accelerated depreciation—often up to 100% in the first year—allowing deduction of full cost in year of purchase.
How to Claim:
  1. Classify assets under the appropriate federal CCA class (43.1/43.2).
  2. Depreciate asset at enhanced rate on your T2 Corporate Tax Return (and BC return).
  3. Document asset type, purchase price, and use. Match CCA class to asset and retain all supporting files.
File with your T2 corporate tax return. Match CCA class to asset type and ensure proper documentation.
Calculation Example: For a $300,000 solar system, you could deduct $300,000 in year one (if eligible), reducing taxable income and federal/provincial taxes owed.
Green Business Grants & Direct Incentives
  • Eligibility: BC businesses planning energy efficiency retrofits, clean manufacturing upgrades, or pilot clean energy projects. Eligibility and amounts vary by grant and year.
  • Benefit: Direct cash funding—often stackable with tax credits.
How to Claim:
  1. Review current programs via official BC business climate programs.
  2. Apply for pre-approval or registration if required (usually before investing).
  3. Submit project plans, budgets, and expected green outcomes.
  4. Upon project completion, submit final reports and supporting documentation for reimbursement.
Some grants require pre-approval. Stacking with tax credits is often allowed; review program terms.
Example: A manufacturer receives a $75,000 grant for an energy-efficient process upgrade, and claims PST exemption and accelerated CCA on the same equipment.
Tip: Most clean tech and manufacturing credits require that assets are acquired new and used primarily in BC. Maintain purchase, installation, and usage records. For complex claims or multi-year projects, consult a tax specialist.

Step-by-Step: How to Claim BC Clean Tech & Manufacturing Credits

  1. Identify eligible equipment, assets, or projects in advance—review both provincial (BC) and federal eligibility rules.
  2. Apply for pre-approval for grants or programs that require it (e.g., direct green grants, special pilot projects).
  3. Purchase and install equipment; retain all invoices, contracts, payment records, and installation/commissioning certificates.
  4. Claim PST exemption at purchase (or apply for refund if PST paid in error).
  5. Track asset class for CCA and prepare supporting documentation for accelerated depreciation (federal/provincial returns).
  6. Complete the BC CTTC Schedule and/or other required forms, and file with your T2 Corporate Tax Return and BC schedules.
  7. For grants, submit required post-project reports, receipts, and results for reimbursement.
  8. Retain all supporting documentation for at least 6 years for audit; typical records include purchase invoices, bank statements, equipment specs, proof of installation/use in BC, and grant agreements.

For official forms:

For more details, visit the BC Business Tax Credits Directory or see our Canada-Wide Business Credits guide for federal stacking strategies.

Real-World Stacking Scenarios

These scenarios illustrate how stacking multiple BC and federal programs can dramatically reduce the net cost of green investments.

Common Mistakes & Audit Risks

Tip: A robust audit trail and careful claim coordination are essential. For large or complex claims, consult a BC tax professional specializing in clean tech/manufacturing.

Frequently Asked Questions (FAQ)

Can I claim both the Clean Technology Tax Credit and a grant for the same equipment?
Yes, but any grant amount received must be deducted from the eligible expenditure for the tax credit. Always check program-specific stacking rules and retain all documentation for both claims.
Do sole proprietors qualify for these credits?
Most tax credits (e.g., CTTC, accelerated CCA) are available only to incorporated businesses. PST exemptions and certain grants may be available to sole proprietors—check specific program guidelines.
How long must I keep records for an audit?
At least 6 years after the end of the tax year. Keep all purchase, payment, installation, and usage documentation for each asset/project claimed.
Are there sector-specific programs for BC clean tech?
Yes—BC periodically introduces targeted programs for hydrogen, carbon capture, forestry, EV infrastructure, and other sectors. Review the official business climate programs page for updates.
What happens if equipment is sold or moved out of province?
If you sell or relocate equipment out of BC or to a non-eligible use, you may be required to repay a portion of the credit or grant, depending on the program and timing. Review clawback rules and retain sale/transfer documentation.

Related BC Business Tax Topics

See also: Climate Action Incentives | GST/HST Rebates | BC Business Tax Credits Directory