Federal Cleantech Tax Credit Consultations
The Government of Canada has launched a series of consultations with Canadians on specific Budget 2023 measures aimed at, among other things, growing the clean economy.
Canadians are invited to share their views and feedback on the proposed measures as the government works towards implementation of these previously announced priorities.
Growing Canada’s Clean Economy was a central pillar of Budget 2023, including a list of clear and predictable investment tax credits. The government is seeking feedback on design details for the:
- New, refundable Clean Electricity Investment Tax Credit and Clean Technology Manufacturing Investment Tax Credit;
- Clean Hydrogen Investment Tax Credit, announced in the 2022 Fall Economic Statement;
- Clean Technology Investment Tax Credit, introduced in the 2022 Fall Economic Statement; and
- Proposed enhancements to the Investment Tax Credit for Carbon Capture, Utilization, and Storage, which were introduced in Budget 2023.
As the Department of Finance works to develop specific design details of these investment tax credits, it welcomes stakeholder organizations and individuals to submit their comments to cleangrowthITC-CIIcroissancepropre@fin.gc.ca.
Labour requirements will be attached to a number of these investment tax credits, as detailed in Budget 2023. The government will continue to consult with unions and other stakeholders on these tax credits to ensure fair pay for workers.
As committed in Budget 2023, the government is consulting with Canadians and Canadian businesses on the reciprocal treatment of its clean economy measures, including domestic content requirements. The government is considering matching other countries’ domestic content requirements with similar restrictions in Canada, in a manner such that any country with incentives open to Canadian business would receive reciprocal treatment in Canadian incentives, while businesses from countries which exclude Canadian businesses would face similar restrictions in Canada.
HRAI is inquiring with the Minister of Finance about a more focused consultation document to outline these proposed tax measures in more detail but, for now, the best information available is in the actual budget document and the fall economic statement, which can be accessed at the links below.
HRAI will be making comments on these proposed measures and will incorporate member inputs.
For more information, contact Martin Luymes at 1-800-267-2231 ext 235 or email mluymes@hrai.ca.
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