Building owners will reduce their energy consumption and save money with a 5% tax credit

CANADA, July 13 – A new tax credit will make energy-efficient renovations to multi-unit residential and commercial buildings more affordable, allowing owners to save 5% on renovations to help them reduce their energy consumption.

“Building owners want to reduce the energy consumption 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 Finances. “This clean building tax credit will help owners of larger, often older, energy-intensive buildings are investing in cleaner energy retrofits by putting money back in their pockets.

The Clean Building Tax Credit supports CleanBC’s commitment to reduce province-wide emissions by 40% below 2007 levels and aligns with British Columbia’s goal to more than half emissions in buildings and communities by 2030.

“Our government is working hard to provide individuals, businesses and communities with the support they need to reduce their energy use – and their energy bills – through programs like the Clean Building Tax Credit” said George Heyman, Minister of Environment and Climate Change Strategy. “Better energy efficiency means fewer emissions, which is good for our environment and brings our existing building infrastructure closer to net zero and our climate goals.”

Buildings eligible for the clean building tax credit include residential buildings, commercial spaces and private sector warehouses. Examples include office space, food retail, and purpose-built rentals.

“Our members want to be part of the solution to climate change, but renovations can be expensive and don’t always pay off,” said Damian Stathonikos, president of the Building Owners and Managers Association of BC. “The tax credit helps reduce the cost of renovations. for building owners and lowers energy costs for tenants, while retrofitting buildings to reduce greenhouse gas emissions. This benefits everyone involved and the environment.

The credit supports work involving building systems, such as heating, ventilation, air conditioning and building envelopes. A successful retrofit in the public sector is Vancouver’s Kitsilano Community Center, which underwent heat recovery upgrades that nearly eliminated the need for natural gas to heat the facility. It has also reduced greenhouse gas emissions by more than 80%. The Clean Building Tax Credit will support commercial and multi-unit residential buildings looking to undertake similar renovations.

“The Vancouver Park Board is a partner with the province in understanding the need for all of us to play our part in reducing energy use and our greenhouse gas emissions,” said Stuart Mackinnon, Chair of the Vancouver Park Board. “It’s great to see an opportunity for commercial and multi-unit residential building owners who support renovations like the one at the Kitsilano Community Center because reducing BC’s emissions requires support from all sectors. .”

To qualify for the credit, building owners must work with a certified professional to determine that their building’s energy intensity has been reduced and met BC manufacturing targets through a qualifying retrofit before request certification from the Ministry of Finance. Qualified professionals include architects, a qualified energy consultant certified by Natural Resources Canada, and engineers.

“We work with customers every day who are looking for ways to reduce their energy consumption and greenhouse gas emissions, but many don’t know where to start,” said Robert Greenwald, president of Prism Engineering. “The programs offered by CleanBC and initiatives like the Clean Building Tax Credit will help them achieve energy, carbon and cost savings now and in the future. »

The Clean Building Tax Credit aligns with the CleanBC roadmap to 2030, which charts the most promising paths to meeting provincial greenhouse gas emissions targets and sets the course for meeting the Net Zero Commitment by 2050. The Clean Building Tax Credit is open and ends March 31, 2025.

Learn more:

Find out how building owners can benefit from the Clean Buildings Tax Credit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/clean-buildings

Subscribe to the “What’s New in British Columbia Income Taxes” page for up-to-date tax credit information via email: https://www2.gov.bc.ca/gov/content/taxes/tax-changes/whats-new/income-taxes

Learn more about CleanBC rebates and programs: https://www2.gov.bc.ca/gov/content/environment/climate-change/clean-buildings.

Read CleanBC’s roadmap to 2030: www.cleanbc.ca

A backgrounder follows.