A new government program now gives non-profit, municipal, and Indigenous organizations a way to save on solar energy projects. On November 17, 2025, the federal government passed the 2025 Budget, introducing the Clean Electricity Investment Tax Credit (CE ITC). This program is designed to make solar and other clean electricity projects more accessible for organizations that do not pay corporate taxes. 

For organizations who were historically unable to benefit from federal tax credits, this change is significant. The CE ITC helps eliminate one of the largest barriers to solar adoption: high upfront costs. When paired with programs like Ontario’s Save on Energy incentives, it creates a strong financial case for moving forward with solar. 

This article outlines what the CE ITC is, who it supports, and why Budget 2025 marks a major turning point for clean energy projects in Canada. 

NOTE: This article will be updated as new information regarding the CE ITC is finalized. (Last updated December 11, 2025)

What is the CE ITC?

The CE ITC is a federal refundable tax credit that supports investments in solar and other clean electricity infrastructure. It is similar in concept to the existing Clean Technology Investment Tax Credit (CT ITC), but it is specifically designed to include organizations that do not pay corporate taxes. 

While details will be finalized when Parliament updates the Income Tax Act, the CE ITC is now formally part of Budget 2025, giving organizations clarity to begin planning solar installations.

Who Benefits from the CE ITC?

As previously noted, the CE ITC is aimed at organizations that do not pay income tax. This includes municipal governments, Indigenous communities and organizations, non-profits, and other non-tax paying entities. These groups were often excluded from previous federal incentives because they lacked taxable income. The CE ITC levels the playing field by offering a direct cash rebate, making projects feasible that may have previously been delayed or canceled. Even smaller projects can now be more realistic with the CE ITC reducing upfront costs.

How the CE ITC Works 

Eligible organizations will be able to receive 15% of project costs back as a refundable credit, effectively lowering the capital required to build solar or clean electricity systems. The CE ITC can also be combined with other grants and programs, such as Ontario’s Save On Energy grant for load displacement solar. By reducing upfront costs, the credit improves project returns and makes planning solar projects simpler.

Until new legislation is finalized, exact eligibility requirements and how far back it credits apply retroactively are not yet known. What we do know is that the CE ITC is expected to help more projects move forward—especially those that previously couldn’t meet the investment requirements.

How Does the CE ITC Compare to the CT ITC?

The CE ITC does not replace the CT ITC; the two programs serve different groups. Here is a simplified comparison: