Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, highlighted the transformational new big five Clean Investment Tax Credit in Budget 2023, which will help produce, manufacture, or transition to clean energy in Canada, while supporting good jobs for the middle class and ensuring more vibrant communities across Canada.
The following tax credits outlined in Budget 2023 will support investments in a thriving, sustainable, made-in-Canada clean economy:
- Introducing a 15 percent refundable Clean Electricity Investment Tax Credit for eligible investments in technologies that are required for the generation and storage of clean electricity and its transmission between provinces and territories, which is available to taxable and tax-exempt entities.
- Introducing a refundable Clean Technology Manufacturing Tax Credit to cover 30 percent of costs in new machinery and equipment used to manufacture or process clean technologies and extract, process or recycle critical minerals.
- Moving forward with the Clean Hydrogen Investment Tax Credit first introduced in the 2022 Fall Economic Statement to support between 15 and 40 percent of eligible projects' costs to produce clean hydrogen, right here at home.
- Expanding the Carbon Capture, Utilization, and Storage Investment Tax Credit to additional types of equipment used to capture carbon dioxide emissions for storage or other uses in industrial processes.
- Expanding eligibility for the refundable Clean Technology Investment Tax Credit to include geothermal energy systems, further supporting the growth of Canada's clean technology sector.
These Clean Investment Tax Credits, which total over $60 billion over the coming ten years, will support green innovation in the private sector, grow our economy, and create or secure thousands of good middle-class jobs.
Budget 2023 also included $20 billion toward the Canada Infrastructure Bank to support the building of major clean-electricity and clean-growth infrastructure projects. To further invest in a clean electricity grid, Budget 2023 also included $3 billion to the Smart Renewables and Electrification Pathways Program; the Smart Grid program to continue to support electricity grid innovation; and other science-based activities to help capitalize on Canada's offshore wind potential. Budget 2023 investments in abundant and low-cost clean electricity will underpin other investments needed to create hundreds of thousands of middle-class jobs, provide the energy that will power our daily lives and the entire Canadian economy, and provide more affordable energy to millions upon millions of Canadian homes.
