Minister Wilkinson Highlights Government's Clean Tech Tax Credit Plan to Build an Economy That Works for Everyone

VANCOUVER, BC, Nov. 8, 2022 /CNW/ - With one of the world's most comprehensive and detailed climate plans, a wealth of natural resources and a skilled workforce, Canada is establishing itself as a global supplier of choice for clean energy in a net-zero world. Governments worldwide are looking for reliable, affordable, non-emitting forms of energy, and it is in this context that like-minded nations must come together to ensure a future that is sustainable both economically and environmentally.

Today, the Honourable Jonathan Wilkinson, Minister of Natural Resources, met with Vice President Operations, Elizabeth Thorsen, and other representatives from Foresight Canada to highlight the new refundable tax credit for clean technology companies as announced in the Fall Economic Statement 2022: Building an Economy That Works for Everyone.

The proposed tax credit would provide a refundable tax credit equal to 30 per cent of the capital cost of investments in:

• electricity generation systems;
• stationary electricity storage systems;
• low-carbon heat equipment; and
• industrial zero-emission vehicles and related charging or refueling equipment.

Helping Canadian companies adopt clean technologies will create jobs, ensure Canadian businesses remain globally competitive, and reduce Canada's emissions at the same time. That's why through the Fall Economic Statement, the Government of Canada is delivering on further promises that will help make life more affordable for all Canadians and businesses.

The Canadian economy faces global headwinds from a position of fundamental strength: an unemployment rate near its record low—over 500,000 more Canadians are working today than before the pandemic—the strongest economic growth in the G7 this year, a triple-A credit rating, and the lowest net debt- and deficit-to-GDP ratios in the G7.

Minister Wilkinson will continue to work with provinces and territories, Indigenous partners, private industry, labour groups and environmental organizations to build on this strength and establish Canada as the global supplier of choice for clean energy in a net-zero world — ensuring a prosperous and clean future for Canadians from coast to coast to coast.

Quote

"Just as any successful business must be capable of interpreting and reacting to changes in the business environment, countries must also be capable of thoughtful response and appropriate action to sustain and enhance their level of prosperity. The cleantech tax credit proposed by the Deputy Prime Minister will keep Canada at the forefront of cleantech innovation, as groups like the International Energy Agency project massive growth in this area going forward."
The Honourable Jonathan Wilkinson
Minister of Natural Resources 

Quick Facts

• The federal government's fiscal anchor—the unwinding of COVID-19-related deficits and reducing the federal debt-to-GDP ratio over the medium term—remains unchanged. The federal debt-to-GDP ratio is projected to continuously decline and is on a steeper downward track than projected in Budget 2022.
• New measures proposed in the 2022 Fall Economic Statement include:

1. Making Life More Affordable:

• Permanently eliminating interest on federal student and apprentice loans;
• Creating a new, quarterly Canada Workers Benefit with automatic advance payments to put more money back in the pockets of our lowest-paid workers, sooner;
• Delivering on key pillars of the government's plan to make housing more affordable, including the creation of a new Tax-Free First Home Savings Account, a doubling of the First-Time Home Buyers' Tax Credit, and ensuring that property flippers pay their fair share; and,
• Lowering credit card transaction fees for small business.

2.  Investing in Jobs, Growth, and an Economy That Works for Everyone:

• Launching the new Canada Growth Fund which will help bring to Canada the billions of dollars in new private investment required to reduce our emissions, grow our economy, and create good jobs;
• Introducing major investment tax credits for clean technologies and clean hydrogen that will help create good jobs and make Canada a leader in the net-zero transition, and incentivizing higher wages for workers by increasing the level of the credit when certain labour protections are met;
• Implementing a new tax on share buybacks by public corporations in Canada; and,
• Creating the Sustainable Jobs Training Centre and investing in a new sustainable jobs stream of the Union Training and Innovation Program to equip workers with the skills required for the good jobs of today and the future.

Related products

• 2022 Fall Economic Statement
• Remarks by the Deputy Prime Minister for the 2022 Fall Economic Statement
• Backgrounder: Making Life More Affordable
• Backgrounder: Making Housing More Affordable
• Backgrounder: Jobs, Growth, and an Economy That Works for Everyone
• Technical Backgrounder: Canada Growth Fund

Associated links

• Annual Financial Report 2021-2022
• Affordability Plan
• Legislation to double the GST Credit for six months receives Royal Assent
• Government of Canada introduces legislation to make life more affordable for Canadians
• Legislation to grow Canadian economy and make life more affordable receives Royal Assent
• Deputy Prime Minister outlines government's Affordability Plan for Canadians

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SOURCE Natural Resources Canada

Natural Resources Canada, Media Relations, 343-292-6100, [email protected]; Keean Nembhard, Press Secretary, Office of the Minister of Natural Resources, 613-323-7892, [email protected]