The Small Business Energy Incentive is designed to support small and medium-sized businesses in improving their energy efficiency and transitioning to electrified systems. It offers financial benefits for investments in eligible depreciating assets and upgrades.
✅ Key Benefits
- Bonus Deduction: Eligible businesses can claim an additional 20% tax deduction on the cost of qualifying assets.
- Maximum Claim: A business can claim a total expenditure of up to $100,000, resulting in a maximum bonus deduction of $20,000.
✅ Eligible Assets
The incentive covers new or upgraded depreciating assets that:
- Enhance energy efficiency (e.g., energy-efficient refrigerators)
- Support electrification (e.g., heat pumps, electric heating and cooling systems)
Additional asset types, such as demand management tools (e.g., batteries and thermal energy storage), may be included once eligibility criteria are finalized in consultation with stakeholders.
✅ Business Eligibility
To qualify, a business must:
- Have an annual turnover of less than $50 million
- First use or install eligible assets between July 1, 2023, and June 30, 2024
- Complete any eligible upgrades within this same period
❌ Excluded Assets
The incentive does not apply to:
Assets that use fossil fuels or are not connected to the electricity grid
Electric vehicles
Renewable electricity generation assets
Capital works
