An analysis by Borden Ladner Gervais, Taxand Canada
Canada’s strategy to transition to a net-zero economy by 2050 includes significant changes to its clean economy investment tax credits (ITCs). Experts from our Canadian member firm Borden Ladner Gervais have analysed some of the key updates introduced in Canada’s 2024 federal budget, which include:
Clean Technology ITC: Offers a 30% credit for investments in equipment that generates clean energy
Clean Technology Manufacturing ITC: Also a 30% credit which supports manufacturing equipment for clean energy and critical minerals
EV Supply Chain ITC: A new 10% credit for costs associated with buildings in electric vehicle supply chains
Clean Electricity ITC: Provides a 15% credit for expenditures on non-emitting electricity generation systems
Clean Hydrogen ITC: Ranges from 15% to 40% based on the carbon intensity of hydrogen production.
Carbon Capture, Utilisation & Storage (CCUS) ITC: Targets equipment for capturing and storing CO2, with detailed rules on project eligibility and reporting requirements.
Recent draft legislation for these ITCs was released in August 2024, with further revisions expected before the end of the year. You can read the full analysis of these changes here.
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