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Canada Announces Tax Credit for Carbon Capture Technology

Canada Announces Tax Credit for Carbon Capture Technology

Canada’s federal government will introduce investment tax credits for carbon capture, utilization, and storage (CCUS) and clean technology manufacturing as it aims to compete globally in clean tech and reduce its greenhouse gas emissions.    

“As an important pillar of Canada’s clean economy jobs plan, the government is focused on implementing, on a priority basis, the new clean economy investment tax credits for carbon capture, utilization, and storage; clean technology adoption; clean hydrogen; clean technology manufacturing; and clean electricity,” the federal government said in the Fall Economic Statement this week.

The government aims to introduce legislation on CCUS in Parliament this fall.

Moreover, the 2023 Fall Economic Statement announced that the Canada Growth Fund would be the principal federal entity issuing carbon contracts for difference. The Canada Growth Fund will allocate, on a priority basis, up to US$5.1 billion (C$7 billion) of its current US$11 billion (C$15 billion) in capital to

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Federal budget sets aside $83B for clean technology tax credits – National

Federal budget sets aside $83B for clean technology tax credits – National

Serious money is heading for Canadian industries looking to reduce emissions after the federal government unveiled its answer to the US Inflation Reduction Act.

The spending commitments announced in Tuesday’s federal budget include tax credits for investments in clean electricity, clean-tech manufacturing, and hydrogen that together are expected to cost some $55 billion through to the 2034-35 fiscal year.

Total tax incentives amount to almost $83 billion over that timeframe when the carbon capture and storage and clean-tech investments credits announced last year were factored in, both of which saw minor boosts this round.

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In Budget 2023, Liberals eye inflation relief ‘without having to write a big check’

The government says the funding is necessary to boost clean economy spending from some $15 billion a year to the $100 billion a year needed. The spending is also needed to not fall behind as other countries roll out subsidies,

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