Department of Finance Canada launched consultations on whether to introduce a domestic-content requirement under the Clean Technology and Clean Electricity investment tax credits.
The consultation follows a Budget 2025 commitment. Finance Canada said other countries, including the United States, have used domestic-content requirements in clean electricity credits to encourage the use of domestic materials and equipment.
The Clean Technology ITC provides a refundable tax credit of up to 30 per cent for eligible investments in assets such as wind and solar systems, stationary electricity storage, low-carbon heating equipment, and non-road zero-emission vehicles with related charging or refuelling equipment.
The Clean Electricity ITC would provide a refundable tax credit of up to 15 per cent for taxable and certain non-taxable corporations, including provincial and territorial Crown corporations, for eligible low-emitting electricity generation, storage, and interprovincial transmission investments.
Finance Canada asked stakeholders to comment on the possible design of a domestic-content requirement, including complexity, administrative burden, and supply-chain challenges. Comments were requested by March 13, 2026.
The consultation is about the conditions attached to investment tax credits: whether clean-economy support should also encourage Canadian materials, equipment, and manufacturing capacity.