Vancouver, BC — Owners of multi-unit residential and commercial buildings in British Columbia are now eligible for a new tax credit. The “Clean Buildings Tax Credit” is set to support retrofit work that improves the energy efficiency of an eligible building and meets energy-use targets.
The B.C. government states that the new tax credit could save owners five per cent on their energy use through the retrofits. Business owners must make or incur the expenditures under the terms of an agreement entered into after Feb. 22, 2022, and paid before April 1, 2025.
Examples of improving energy efficiency could include heating, ventilation, air conditioning and building envelopes.
To be eligible for the credit, building owners must have their retrofit project assessed by a certified professional (architect, engineer or qualified energy advisor) to determine that the energy use intensity of their building has been reduced and is meeting made-in-B.C. targets. From there, building owners can apply for certification with the ministry of finance. The application for certification must be filed before April 1, 2027.
Eligible buildings for the tax credit must be located in B.C and include multi-unit residential buildings consisting of four or more dwellings, commercial spaces, warehouses, and other buildings classified as class six or eight properties under the Assessment Act.
The tax credit can be claimed on the participant’s income tax return.