T1356: British Columbia (B.C.) Clean Buildings Tax Credit

This is a refundable income tax credit for qualifying retrofits. Eligible commercial and multi-unit residential buildings with four or more units must have retrofits that:

  • improve energy efficiency and
  • meet energy-use targets.

The credit amount is 5% of qualifying expenditures paid on the retrofit. For eligibility, expenses must occur under the terms of an agreement entered after February 22, 2022, and be paid or incurred before April 1, 2025.

Requirements must be met in the tax year the credit is being claimed. To claim the clean buildings tax credit, you must be either:

  • A corporation with a permanent establishment in B.C.
  • An individual or trust, that:
    • Is resident in B.C., or
    • Is not resident in B.C. but has income earned in B.C. for income tax purposes.

Entities that are excluded from B.C income tax are not eligible.

Terms Definition
Eligible buildings

An Eligible building being retrofitted must be in B.C. and consist of one or more of the following types:

  • A multi-unit residential building consisting of four or more dwellings
  • Accommodation (only includes buildings classified as class 6 property under the Assessment Act)
  • A 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
Qualifying retrofits

A qualifying retrofit is an alteration or renovation that add new elements such as equipment, technology, or systems to improve the structure or building to an eligible building. The retrofit needs to be:

The qualifying expenditures you incur as part of the retrofit are what’s used to calculate your tax credit amount.
Terms Definition
Qualifying expenditures

Only the expenses that are attributable to the retrofit qualify.

For eligibility, expenses must occur under the terms of an agreement entered after February 22, 2022, and be paid or incurred before April 1, 2025.

Note:

  • You can’t include expenses that someone else included in calculating their clean buildings tax credit. If you are a member of a partnership, you may include your appropriate portion of the partnership’s qualifying expenditures.
  • The expense is reduced by any payments received under a program designed to help with the cost of alteration or renovation of the building or the land it is on.

 

Qualifying expenditures

Some examples of Qualifying expenditures are listed below:

  • 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 the retrofit or for the rental of equipment used in the retrofit
  • Qualified person certifying the retrofit

 

Exclusions

The following expenditures do not qualify:

  • Expenses that do not reduce energy use intensity (EUI)
  • Expenses you made or happened if you were paid to make the expense. For example, you were the contractor performing the retrofit
  • Purchases or reacquisitions of items you previously leased or owned
  • Property that can be used independently of the qualifying retrofit, for example portable heaters
  • Household appliances
  • Electronics (home-entertainment)
  • Costs of annual, recurring, or routine repair, maintenance, or service
  • Financing costs in respect of the retrofit
  • Goods or services provided by a person not dealing at arm's length with you, unless the person is registered for the purposes of Part IX of the Excise Tax Act (Canada)

Follow these steps in H&R Block’s 2024 tax software:

Before you begin, make sure you’ve told us that you lived in British Columbia on December 31, 2024, and the retrofit was certified with the Ministry of Finance. Certifying is a two-step process that can start 12 months after the retrofit is finished. For more information, see Certifying your retrofit.

  1. On the left navigation menu, under the Credits & deductions tab, click Other.

  1. Under the SPECIFIC CREDITS FOR YOUR PROVINCE heading, select the checkbox labelled British Columbia Clean Buildings Tax Credit (T1356), then click Continue.
  2. When you arrive at the British Columbia Clean Buildings Tax Credit (T1356) page, enter your information into the tax software.