Canada

Canada

Adopts new investment tax credits to promote clean energy investment

01 Apr 2023

On 8 June 2023, the Federal Budget for the fiscal years 2023–2024 was adopted by the Parliament of Canada. It introduced two new tax credits for clean technology investment and clean hydrogen investment. To be eligible for the full tax credit, project proponents must adhere to specific labour conditions. Failure to comply with these conditions will result in a 10 per cent reduction in the tax credit awarded. The Clean Technology Investment Tax Credit is extended to geothermal energy systems, and the Carbon Capture, Utilization and Storage tax credit established by the 2022 Budget was maintained.