Building Retrofit, Energy, and Clean Building Incentives: Eligibility by Province

Building Retrofit, Energy, and Clean Building Incentives: Eligibility by Province

Energy costs are rising, and provinces now have stricter building emissions rules. Building retrofit, energy, and clean building incentives are more important than ever. Across Canada, governments offer tax credits, rebates, and financing to help you upgrade buildings, cut energy use, and lower operating costs—if you meet the right eligibility rules.

This guide explains building retrofit, energy, and clean building incentives by province, with real program examples and clear eligibility details. All facts below are based on current government sources. GrantHub’s eligibility matcher helps you find programs for your business.

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How Building Retrofit and Clean Energy Incentives Work in Canada

Most incentives fall into three categories:

• Refundable tax credits: Claimed through your corporate or personal tax return. You get cash back even if you owe no tax.
• Grants and incentives: Direct funding that covers part of your retrofit costs.
• Low-cost financing: Government-backed loans that reduce upfront costs.

Eligibility almost always depends on:

• Province where the building is located
• Type of building (commercial, industrial, multi-unit residential, public)
• Measured energy savings or emissions reductions
• Who owns the building, not just who operates it

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Provincial Incentive Programs

British Columbia: Clean Buildings Tax Credit

Program: BC Clean Buildings Tax Credit
Jurisdiction: British Columbia
Type: Refundable income tax credit

What you can get

• 5% refundable tax credit on eligible retrofit costs

Who’s eligible

• Corporations with a permanent establishment in B.C.
• B.C. residents, or non-residents earning B.C. income
• You must own and retrofit an eligible building

Eligible buildings

• Commercial buildings
• Multi-unit residential buildings in B.C.

Key conditions

• Retrofits must reduce the building’s energy use intensity (EUI)
• Only direct retrofit costs qualify
• Retrofits must be completed and certified by March 31, 2026
• Costs can’t be claimed if they’re already covered by other government assistance

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Ontario: Retrofit Incentives and Tax Refunds

Save on Energy Retrofit Program

Program: Retrofit Program (Save on Energy)
Jurisdiction: Ontario
Type: Incentive funding (partially repayable)

What you can get

• Up to 50% of eligible project costs
• Funding is repayable under program terms

Who’s eligible

• Owners or lessees of:
  • Commercial and industrial buildings
  • Municipal and institutional buildings
  • Multi-residential and agricultural facilities
• Lessees need owner authorization

Eligible upgrades

• HVAC redesigns and replacements
• Lighting controls
• Variable-speed drives
• Solar photovoltaic systems
• Custom energy-saving equipment

Projects must deliver measurable and verifiable electricity savings.

Tax Refund for Power Takeoff (PTO) Equipment

Program: Tax refund for power takeoff equipment
Jurisdiction: Ontario
Type: Fuel tax refund

This isn’t a retrofit grant, but it matters for building and energy operations.

What you can claim

• Refund of Ontario fuel tax paid on fuel used to run auxiliary PTO equipment

Eligibility rules

• Vehicle must be licensed under the Highway Traffic Act
• PTO equipment must:
  • Use fuel from the same tank as the vehicle
  • Not be used to propel the vehicle
• Equipment use must occur in Ontario
• Vehicle cannot be mainly for passenger transport
• No personal or recreational use

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Quebec: ÉcoPerformance – Biénérgie (Commercial and Institutional)

Program: ÉcoPerformance — Biénérgie commercial — Institutionnel
Jurisdiction: Quebec
Type: Grant funding

What you can get

• Up to $6,000,000 per project
• Covers up to 80% of eligible project costs

Who’s eligible

• Businesses, institutions, municipalities, and organizations
• Buildings must be located in Quebec
• Natural gas supplied by Énergir
• Buildings with:
  • Commercial or institutional use
  • Municipal or large multi-unit residential use (20+ units)

Project focus

• Partial conversion from natural gas heating to bi-energy systems
• Designed to balance electricity and gas networks while cutting emissions

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Federal Incentives

Canada Infrastructure Bank: Building Retrofits Initiative

Program: Building Retrofits Initiative
Jurisdiction: Federal
Type: Low-cost financing

What it offers

• Attractive financing to support:
  • Energy efficiency upgrades
  • Fuel switching
  • Renewable energy installations

Who’s eligible

• Public sector entities (governments, schools, hospitals, universities)
• Indigenous communities
• Private owners of commercial, industrial, and multi-unit residential buildings

This program helps large retrofit projects move forward when grants alone aren’t enough.

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How to Apply for Incentives

Applying for building retrofit and energy incentives takes planning and attention to detail. Here are some steps to help you get started:

1. Check eligibility carefully
   Review all requirements for your province and building type. Missing a key detail can mean your application is rejected.

2. Gather building data
   Collect records like energy bills, building plans, and retrofit quotes. Most programs require proof of energy use and expected savings.

3. Complete required certifications
   Some incentives, like B.C.’s Clean Buildings Tax Credit, require third-party certification before you can claim benefits.

4. Submit your application on time
   Deadlines for applications and certifications are strict. Mark important dates and submit all documents before the cutoff.

5. Keep records for audits
   Save all receipts, contracts, and certifications. Government programs may audit your project after funding is provided.

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Common Mistakes to Avoid

1. Assuming tenants can apply
   Most building retrofit incentives require the building owner to apply, not just the operator.

2. Missing energy measurement rules
   Programs often require verified energy savings. Estimates alone are rarely enough.

3. Double-counting government funding
   Many tax credits, including B.C.’s Clean Buildings Tax Credit, don’t allow costs already covered by other assistance.

4. Waiting too long to certify work
   Deadlines, like B.C.’s March 31, 2026 certification date, are strict.

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Frequently Asked Questions

Q: Are building retrofit incentives available in every province?
Yes, but programs vary widely. Some provinces focus on tax credits, others on grants or financing. Eligibility always depends on where the building is located. For the latest updates, you can check GrantHub’s provincial program listings.

Q: Can I combine federal and provincial incentives?
Sometimes. However, many programs reduce eligible costs if you receive other government funding. Always check stacking rules before applying.

Q: Do small businesses qualify for clean building incentives?
Yes, if they own eligible buildings. Many programs are open to SMEs, not just large corporations.

Q: Are equipment upgrades like HVAC always eligible?
Only if they meet program-specific efficiency or emissions targets. Standard replacements may not qualify.

Q: Is the tax refund for power takeoff equipment a grant?
No. It’s a fuel tax refund in Ontario, not a building retrofit incentive, but it can reduce operating costs for energy-related equipment.

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See Also

• How to stack grants and loans without violating funding rules
• What Business Expenses Are Eligible Across Canadian Grants and Loans?

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Next Steps

Building retrofit, energy, and clean building incentives can lower upgrade costs—if you match the right program to your province and building type. GrantHub tracks hundreds of active grant and incentive programs across Canada, including tax credits and refunds. Checking which ones fit your business profile is the smartest way to plan your next retrofit.