BC Budget 2022: Stronger Together – Fighting Climate Change with CleanBC
Update 2: Mar 3/22
Clean Building Tax Credit Update: The Province has now released eligibility criteria including eligible buildings, qualifying retrofits and how to claim the credit. Further details on how to certify the retrofit will be available at the end of 2022 and will likely be an online portal format.
Heat Pump PST Exemption Update: The Province has now released additional information regarding refund provisions for Heat Pumps already purchased that meet eligible criteria.
Update 1: Feb 23/22
Clean Buildings Tax Credit - Full Program Details | BC Government Webpage
Learn more about:
First Post: Feb 22/22
On February 22nd, 2022, Finance Minister Selina Robinson unveiled British Columbia’s 2022 Provincial Budget. The Budget focused on fighting climate change, and of particular interest to BOMA BC members is new support for energy-efficient buildings.
Zach Segal, BOMA BC’s Director of Government Relations was on-site in Victoria to participate in the budget briefing and lock up.
The Clean Buildings Tax Credit
The Province will be introducing a new 5% Clean Buildings Tax Credit.
Commercial buildings that undertake retrofits to improve their energy efficiency and meet prescribed energy use targets can receive a refundable tax credit of 5% of eligible expenditures. (The energy use targets will be comparable to ASHRAE Standard 100 target values, with more details to follow).
This tax credit will encourage major retrofits for multi-unit residential and commercial buildings to meet CleanBC, incentivizing energy efficiency upgrades that go above and beyond minimum requirements.
The tax credit will be effective April 1, 2022, and expiring April 1, 2025, and eligible expenditures must be under a contract entered into after February 22, 2022.
PST Exemption On Heat Pumps
Effective April 1, 2022, heat pumps are exempt from the PST. This is paired with an increase to the PST on fossil fuel heating equipment to 12%. This is to incentivize the switch to heat pumps while using the increased PST on fossil fuel combustion systems to fund the cost of a new incentive to make heat pumps more affordable for rural and northern communities.
If a heat pump is purchased before April 1, 2022, to fulfill a contract where the heat pump is affixed or installed into real property on or after April 1, 2022, the person who paid the PST on the heat pump will be eligible to apply for a refund of that tax.
BOMA BC Advocacy
BOMA BC has strongly advocated for financing measures and tax credits to help support the commercial real estate industry improve its energy efficiency. BOMA BC has always taken the approach that industry and government must work collaboratively if we are going to achieve our energy emission reduction goals.
We will update our members as more information becomes available on the specific energy use targets and eligible commercial building types. See all updates at top of page.
Stay tuned to hear more about this tax credit. If you have any questions or would like to share your thoughts about this initiative, please contact Zach Segal, our Director of Government Relations at email@example.com, or 604-684-3916 x. 225.