By Tristan Bertram, Director of Industry Affairs • 825-522-4834 • tristan.bertram@tiac.ca
As we step into 2026, it’s clear that Canada’s transition to a clean economy is no longer an abstract goal—it’s a legislated, rapidly evolving reality. From energy infrastructure and industrial retrofits to critical mineral supply chains and clean manufacturing, major investments are moving forward across the country.
One of the key drivers of this shift is the rollout of Canada’s Clean Economy Investment Tax Credits (ITC), a suite of refundable tax incentives designed to accelerate the adoption of clean technologies. While mechanical insulation isn’t explicitly named as an eligible expense in these programs (yet), TIAC believes it should be.
What are the Clean Tech ITCs?
The federal Clean Economy ITC framework, enacted between 2023 and 2025, includes multiple investment tax credits to support clean energy adoption. The two most relevant to our industry are
- Clean Technology (CT) ITC: A refundable 30% tax credit for investments in eligible clean technology property, such as solar, wind, battery storage, and heat pumps.
- Clean Technology Manufacturing (CTM) ITC: A refundable 30% tax credit on energy-efficient equipment used to improve manufacturing or processing.
These credits are meant to unlock private capital and accelerate Canada’s energy and industrial transition.
Where mechanical insulation fits
Mechanical insulation may not be listed as “eligible property” under the CT or CTM ITCs, but its role is essential. Insulation supports clean energy systems by
- reducing heat loss and energy waste
- enhancing overall system performance
- helping projects meet energy use intensity (EUI) and emissions goals
- protecting the durability and lifespan of clean technology infrastructure
From heat pumps to district energy systems, insulation isn’t peripheral; it’s performance-enabling. These tax credits are designed to support exactly that.
TIAC is actively engaging the federal government to ensure mechanical insulation is recognized as a vital part of clean technology systems. Verified installation quality through programs like our Quality Assurance Certificate (QAC) could offer a credible, scalable path to inclusion. QAC programs give project owners the confidence that their insulation system
- meets specifications
- supports modelled energy efficiency
- contributes to long-term system reliability and emissions performance
In a policy environment where clean tech investments are increasingly tied to verifiable outcomes, this kind of third-party documentation matters. If mechanical insulation were formally included under federal investment tax credits, quality assurance would be key. We’re not just asking to be included; we’re offering a tool to help deliver on the promise of these programs.
We’re not just insulators. We’re energy professionals.
Our industry helps projects achieve the energy and emissions targets these tax credits aim to deliver. By integrating QAC into clean tech projects, we don’t just support performance; we help project owners achieve the outcomes that the Clean Economy ITCs reward.
TIAC’s goal is clear: get mechanical insulation recognized as a clean-economy enabler, and do so through national standards, policy advocacy, and proven quality assurance systems.
Let’s make 2026 the year we turn potential into policy
2026 is shaping up to be a pivotal year. In a funding environment increasingly tied to energy performance, our industry has everything to gain—if we’re prepared to prove our impact. As governments and project owners push for better outcomes, we have a unique opportunity to demonstrate that mechanical insulation isn’t just compatible with clean-tech goals; it’s essential to achieving them.
By showing up with proven quality, smart advocacy, and a united voice, our industry can secure the recognition it deserves. TIAC is ready to lead that charge, and we invite you to be part of it.
Are you working on a clean energy project where insulation is critical to performance? We want to hear from you! Your experience could help support TIAC’s case for policy inclusion and strengthen our advocacy efforts. If you’d like to get involved in this work or share your insights, please reach out. ▪
