Incentives

Residential Rebate Information

Currently, in Alberta there are no active residential rebates available. This space will be updated when rebates are introduced.

Business Income Tax Measures

ACCELERATED CAPITAL COST ALLOWANCE FOR CLEAN ENERGY GENERATION
Under the capital cost allowance (CCA) regime in the income tax system, Class 43.2 of Schedule II to the Income Tax Regulations provides accelerated CCA (50 per cent per year on a declining balance basis) for specified clean energy generation and conservation equipment. The class incorporates by reference a detailed list of eligible equipment that generates or conserves energy by: using a renewable energy source (for example, wind, solar, small hydro); using fuels from waste (for example, landfill gas, wood waste, manure); or making efficient use of fossil fuels (for example, high efficiency cogeneration systems, which simultaneously produce electricity and useful heat). Providing accelerated CCA in this context is an explicit exception to the general practice of setting CCA rates based on the useful life of assets. Accelerated CCA provides a financial benefit by deferring taxation. This incentive for investment is premised on the environmental benefits of low-emission or no-emission energy generation equipment.

Accelerated CCA for Clean Energy Generation
Class 43.2 was introduced in 2005 and is currently available for assets acquired on or after February 23, 2005 and before 2020. For assets acquired before February 23, 2005, accelerated CCA is provided under Class 43.1 (30 per cent). The eligibility criteria for these two classes are generally the same, except that cogeneration systems that use fossil fuels must meet a higher efficiency standard for Class 43.2 than for Class 43.1. Systems that only meet the lower efficiency standard are eligible for Class 43.1. Class 43.2 includes a variety of stationary clean energy generation or conservation equipment that is used to produce electricity or thermal energy, or used to produce certain fuels from waste that are in turn used to produce electricity or thermal energy. Subject to detailed rules in the regulations, eligible equipment includes:

ELECTRICITY High efficiency cogeneration equipment; Wind turbines; Small hydroelectric facilities; Fuel cells; Photovoltaic equipment; Wave and tidal power equipment; Equipment that generates electricity using geothermal energy; and Equipment that generates electricity using an eligible waste fuel.
THERMAL ENERGY Active solar equipment; Ground source heat pump equipment; District energy equipment that distributes thermal energy from cogeneration; Equipment that generates heat for an industrial process or a greenhouse using an eligible waste fuel; and Heat recovery equipment used in electricity generation and industrial processes.
FUELS FROM WASTE Equipment that recovers landfill gas or digester gas; Equipment used to convert biomass into bio-oil; and Equipment used to produce biogas through anaerobic digestion.

If the majority of tangible property in a project is eligible for inclusion in Class 43.2, then certain intangible project start-up expenses (for example, engineering and design work and feasibility studies) are treated as Canadian Renewable and Conservation Expenses. These expenses may be deducted in full in the year incurred, carried forward indefinitely for use in future years, or transferred to investors using flow-through shares. Budget 2010 proposes to expand Class 43.2 to include: (a) heat recovery equipment used in a broader range of applications; and (b) distribution equipment used in district energy systems that rely primarily on ground source heat pumps, active solar systems or heat recovery equipment.

More information

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Currently, in Alberta there are no active residential rebates available. This space will be updated when rebates are introduced.

ACCELERATED CAPITAL COST ALLOWANCE FOR CLEAN ENERGY GENERATION
Under the capital cost allowance (CCA) regime in the income tax system, Class 43.2 of Schedule II to the Income Tax Regulations provides accelerated CCA (50 per cent per year on a declining balance basis) for specified clean energy generation and conservation equipment. The class incorporates by reference a detailed list of eligible equipment that generates or conserves energy by: using a renewable energy source (for example, wind, solar, small hydro); using fuels from waste (for example, landfill gas, wood waste, manure); or making efficient use of fossil fuels (for example, high efficiency cogeneration systems, which simultaneously produce electricity and useful heat). Providing accelerated CCA in this context is an explicit exception to the general practice of setting CCA rates based on the useful life of assets. Accelerated CCA provides a financial benefit by deferring taxation. This incentive for investment is premised on the environmental benefits of low-emission or no-emission energy generation equipment. 

Accelerated CCA for Clean Energy Generation 
Class 43.2 was introduced in 2005 and is currently available for assets acquired on or after February 23, 2005 and before 2020. For assets acquired before February 23, 2005, accelerated CCA is provided under Class 43.1 (30 per cent). The eligibility criteria for these two classes are generally the same, except that cogeneration systems that use fossil fuels must meet a higher efficiency standard for Class 43.2 than for Class 43.1. Systems that only meet the lower efficiency standard are eligible for Class 43.1. Class 43.2 includes a variety of stationary clean energy generation or conservation equipment that is used to produce electricity or thermal energy, or used to produce certain fuels from waste that are in turn used to produce electricity or thermal energy. Subject to detailed rules in the regulations, eligible equipment includes: 

ELECTRICITY High efficiency cogeneration equipment; Wind turbines; Small hydroelectric facilities; Fuel cells; Photovoltaic equipment; Wave and tidal power equipment; Equipment that generates electricity using geothermal energy; and Equipment that generates electricity using an eligible waste fuel. 
THERMAL ENERGY Active solar equipment; Ground source heat pump equipment; District energy equipment that distributes thermal energy from cogeneration; Equipment that generates heat for an industrial process or a greenhouse using an eligible waste fuel; and Heat recovery equipment used in electricity generation and industrial processes. 
FUELS FROM WASTE Equipment that recovers landfill gas or digester gas; Equipment used to convert biomass into bio-oil; and Equipment used to produce biogas through anaerobic digestion.

If the majority of tangible property in a project is eligible for inclusion in Class 43.2, then certain intangible project start-up expenses (for example, engineering and design work and feasibility studies) are treated as Canadian Renewable and Conservation Expenses. These expenses may be deducted in full in the year incurred, carried forward indefinitely for use in future years, or transferred to investors using flow-through shares. Budget 2010 proposes to expand Class 43.2 to include: (a) heat recovery equipment used in a broader range of applications; and (b) distribution equipment used in district energy systems that rely primarily on ground source heat pumps, active solar systems or heat recovery equipment.

Subscribe to our email list for more information on rebates and tax incentives.