Northern Canada Green & Clean Tech Business Tax Credits
(Yukon, Northwest Territories, Nunavut)

A comprehensive guide to green and clean technology business tax credits and incentives in Northern Canada—including Yukon, Northwest Territories (NWT), and Nunavut. Learn how your business can benefit from unique territorial and federal supports for clean energy, climate action, and sustainable innovation in Canada’s North.

Overview: The Drive for Clean Tech in the North

Northern Canada faces unique challenges and opportunities in the transition to a low-carbon economy. Remote communities, high energy costs, and fragile ecosystems make the adoption of green and clean technologies both urgent and impactful. To support this, federal and territorial governments offer targeted incentives for businesses investing in renewable energy, energy efficiency, clean manufacturing, and climate adaptation. These credits help offset the higher costs of deploying innovative solutions in northern climates, while supporting local job creation and long-term sustainability.

Directory of Green & Clean Tech Credits in Northern Territories

Jump to provincial green tech credits: Quebec, British Columbia, Alberta, Ontario, and more.

Federal Clean Tech Tax Credits Available in the North

Clean Technology Investment Tax Credit (ITC): Up to 30% refundable credit for eligible investments in clean electricity, storage, and industrial decarbonization.
Clean Hydrogen Investment Tax Credit: Up to 40% refundable credit for eligible hydrogen projects, including those in remote/northern locations.
Carbon Capture, Utilization, and Storage (CCUS) Tax Credit: Up to 60% for eligible CCUS equipment.
Accelerated Capital Cost Allowance (CCA): Enhanced depreciation for clean energy and energy conservation equipment (Classes 43.1, 43.2).
Scientific Research & Experimental Development (SR&ED): For clean tech R&D and demonstration projects.

These credits are available to businesses in Yukon, NWT, and Nunavut, and may be stacked with select territorial incentives. See Canada Green Tech Credits for more detail.

Territorial Green Tech & Innovation Incentives

Yukon

Yukon Innovative Energy Solutions Program (IESP): Grants for renewable energy, storage, and energy efficiency demonstration projects.
Eligibility: Yukon-based businesses, communities, First Nations, and non-profits.
Claim Process: Submit project proposal to Yukon Energy Branch; detailed technical, financial, and emission reduction plans required.
Typical Award: 50%–75% of eligible costs, up to $1M/project.
Documentation: Budget, technical specs, community benefit analysis.
Yukon Business Development Fund: May fund feasibility studies for clean tech adoption.
Eligibility: Yukon businesses.
Claim Process: Application to Yukon Government Economic Development.

Northwest Territories (NWT)

Greenhouse Gas Grant Program for Buildings and Industry: Grants for projects reducing GHG emissions (renewables, retrofits, electrification).
Eligibility: NWT businesses, industry, communities.
Claim Process: Submit application to NWT Infrastructure; include emission reduction calculations and project details.
Typical Award: Up to 50% of eligible costs.
Documentation: Technical specs, GHG calculations, financial plan.
Business Stream – Energy Efficiency Incentive Program (Arctic Energy Alliance): Rebates for efficient equipment and retrofits.
Eligibility: NWT businesses.
Claim Process: Pre-approval, receipts, and installation documentation required.

Nunavut

Nunavut Energy Retrofit Program: Rebates for building energy upgrades and renewable energy installations.
Eligibility: Nunavut businesses, organizations.
Claim Process: Application to Qulliq Energy Corporation; provide energy audit and project details.
Documentation: Audit, invoices, photos of completed work.
Nunavut Business Credit Corporation – Innovation Loans: Financing for clean tech projects.

Note: Most northern green tech incentives are delivered as grants or rebates, not tax credits. However, these can be stacked with federal tax credits like the Clean Tech ITC or SR&ED for deeper savings.

How to Claim & Calculation Examples

Federal Clean Tech ITC Example: Yukon business installs $200,000 in solar panels and battery storage. Receives Yukon IESP grant covering 60% ($120,000). Federal Clean Tech ITC applies to net cost ($80,000): 30% x $80,000 = $24,000 refundable credit claimed on federal tax return (T2SCH568).
NWT Energy Efficiency Incentive Example: NWT hotel installs high-efficiency boilers. Gets $10,000 rebate from Arctic Energy Alliance, and can claim accelerated CCA (Class 43.2) for remaining capital cost.

Always deduct any government assistance (grants, rebates) from eligible capital cost before calculating federal tax credits. Keep detailed records of all funding sources, invoices, and technical documentation.

Stacking Northern & Federal Credits: Practical Scenarios

Stacking is common and encouraged in the North:

Scenario: A Nunavut construction company installs a wind turbine. It receives a Nunavut Energy Retrofit rebate (40% of cost), and also claims the federal Clean Tech ITC (30% of net cost after rebate). If the project includes R&D, it may also claim SR&ED.
Tip: Most northern grants/rebates are non-taxable and do not reduce the value of federal refundable tax credits, but always check with a tax professional and review the latest CRA guidance.

Documentation Requirements

Proof of project completion (photos, commissioning reports)
Invoices and receipts for equipment and installation
Grant/rebate approval letters
Technical specifications and energy/GHG calculations
Copies of all applications and correspondence

Territorial programs may require periodic reporting to maintain eligibility for rebates and performance-based incentives.

Audit Risks & Best Practices

Ensure all claims are net of government assistance.
Retain all technical and financial documentation for at least 6 years.
For SR&ED, maintain detailed records of experimental work and results.
Consult a northern tax specialist for complex/large projects.

FAQ: Northern Green Tech Tax Credits

Can businesses in the North claim the same federal green tech credits as in the provinces?: Yes! All federal clean tech investment tax credits and SR&ED are available to eligible businesses in Yukon, NWT, and Nunavut.
Are grants and rebates taxable in the North?: Most territorial grants/rebates for capital projects are non-taxable, but check the specific program rules and CRA guidance.
Can Indigenous-owned businesses access these incentives?: Absolutely. Most programs are open to Indigenous businesses and communities, and some offer additional support for Indigenous-led projects.
Where do I get application forms?: See the official links below for application portals and guidance, or contact your territorial energy or economic development office.

Northern Canada Green & Clean Tech Business Tax Credits(Yukon, Northwest Territories, Nunavut)