News
5% tax credit for BC building owners who undertake energy retrofits

July 27, 2022 – In British Columbia, a new tax credit targeting multi-unit residential and commercial buildings will save owners 5% on energy retrofits.

“Building owners want to reduce the energy use of their home, office or retail space, but the upfront costs of these retrofits can be a challenge for people,” said Selina Robinson, Minister of Finance. “This Clean Building Tax Credit will help owners of larger—often older and energy-inefficient buildings—invest in cleaner energy retrofits by putting dollars back into their pockets.”

Eligible buildings include:

• Multi-unit residential building consisting of four or more dwellings
• Accommodation (only includes buildings classified as class 6 property under the Assessment Act)
• College or university
• Food services
• Hospital
• Logistics and warehousing
• Long-term care
• Offices
• Retail, food – Retail, other
• Schools
• Other buildings classified as class 6 or class 8 property under the Assessment Act

Improvements that are eligible for the tax credit must reduce energy use intensity of the multi-unit building, and include:

• heating, ventilation and air-conditioning systems
• fans
• interior and exterior lighting devices
• service water heating equipment
• pumps
• receptacle loads and miscellaneous equipment
• elevators and escalators
• building envelope, including improvement to the insulation
• permits required for, or for the rental of, equipment used in the course of the qualifying retrofit
• cost of work by qualified person certifying the retrofit

“The tax credit helps reduce the retrofit cost for building owners and lowers energy expenses for tenants, while modernizing buildings to reduce greenhouse gas emissions,” said Damian Stathonikos, president of BOMA BC. “It benefits everyone involved, and the environment.”

For owners to be eligible for the credit, buildings must have four or more units. Owners must work with a certified professional to determine that the energy use-intensity of their building has been reduced and is meeting made-in-B.C. targets through a qualifying retrofit before applying for certification with the Ministry of Finance. Qualified professionals include architects, energy adviser certified by Natural Resource Canada, engineers.

The Clean Buildings Tax Credit is claimed on a business’s income tax return filed with the Canada Revenue Agency. The credit must be claimed no later than 18 months after the end of the tax year, after the tax year in which the retrofit was completed.