HST Rebates for MicroFIT projects
Press Release: Solar industry beams as Canada Revenue clears HST haze surrounding Ontario microFIT projects
OTTAWA Sept. 22, 2011 – The Canadian Solar Industries Association is pleased recent Canada Revenue Agency activity is clearing up tax confusion regarding the HST refund on microFIT solar PV systems.
In May 2011 a directive was issued to all CRA agents to hold all refunds for microFIT projects that did not meet the definition of being on commercial property or on property used at least 90 per cent for commercial purposes. The issue in question was whether a solar power system was considered to be partially or totally a home renovation.
CanSIA obtained an independent legal opinion on behalf of it members supporting the HST input tax credit claims and made a submission to the CRA on behalf of microFIT system owners (see Submission).
Last week members began receiving letters from CRA informing them that their HST ITC claims may be approved. This week CRA posted an information sheet- The GST/HST Implications of the Acquisition of Solar Panels Under the micro Feed-in Tariff Program in Ontario – which clarifies the situation.
“We are very happy to see that the CRA is starting to allow HST claims on eligible microFIT projects,” said Elizabeth McDonald, CanSIA President. “The purchase and installation of microFIT solar systems will now be interpreted as a ‘Capital Personal Property’ which is eligible for an ITC, instead of as a ‘Capital Real Property’ which isn’t. Our members are happy that through our combined efforts, the issues were heard and understood.”
The Canadian Solar Industries Association is a national trade association that represents approximately 650 solar energy companies throughout Canada. Since 1992, CanSIA has worked to develop a strong, efficient, ethical and professional Canadian solar energy industry with capacity to provide innovative solar energy solutions and to play a major role in the global transition to a sustainable, clean-energy future.
Sylvie Powell, MédiaLane Communications Inc.
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