On 20 December 2023, Canada’s Department of Finance launched consultations on introducing tax credits for clean hydrogen investment and Clean Technology Manufacturing investment.
As detailed in the 2023 Fall Economic Statement, the government is delivering its five major economic investment tax credits—which will help attract private investment to create good jobs with $85 billion in federal support over the next decade—on a priority basis, with legislative implementation targeted to conclude in 2024.
Last month, the government introduced legislation to deliver the Carbon Capture, Utilization, and Storage investment tax credit and the Clean Technology investment tax credit, as well as related labor requirements to ensure Canadian workers benefit from prevailing union wages and apprenticeship opportunities.
The government continues to deliver its major economic investment tax credits by releasing draft legislation for the clean hydrogen investment tax credit and clean technology manufacturing investment tax credit. In addition, the government is releasing draft legislation and regulations for previously announced tax measures:
- International Shipping, to support Canadian shipping companies in remaining incorporated in Canada by exempting the international shipping income of Canadian resident companies from the Income Tax Act. This measure will come into force on or after December 31, 2023.
- Concessional Loans, to clarify that bona fide concessional loans with reasonable repayment terms from public authorities will generally not be considered government assistance. This measure will apply as of 21 November 2023.
To provide home builders with the certainty needed to make investment decisions, the government is also releasing draft regulations with further technical details on the removal of the Goods and Services Tax (GST) from new purpose-built rental housing, which will apply to projects that begin construction between 14 September 2023, and the end of 2030, and complete construction before 2036.
