In a speech accompanying the release of the Economic Statement, Deputy Prime Minister and Minister of Finance Chrystia Freeland stated “[w]ith major investment tax credits for clean technology and clean hydrogen, we will make it more attractive for businesses to invest in Canada to produce the energy that will power a net-zero global economy.”
Key energy-related incentives in the Economic Statement are summarized below.
Clean Technology Investment Tax Credit
The Economic Statement proposed a refundable investment tax credit (ITC) worth up to 30 percent of the capital cost of investments in:
Electricity generation systems, including Small Modulator Reactors (SMRs), solar photovoltaic and concentrated solar systems, wind and water (small hydro, run-of-river, wave and tidal). Large-scale nuclear is not expressly included in this proposal, but will be subject of future…