Post: Canada budget 2023-24: key measures and proposals 

Canada budget 2023-24: key measures and proposals 

Deputy Prime Minister and Minister of Finance, Chrystia Freeland, has unveiled Budget 2023—A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future.

In the release, unveiled on March 28, it was noted that Budget 2023 makes “transformative investments to build Canada’s clean economy, fight climate change, and create new opportunities for Canadian businesses and Canadian workers”. This includes significant measures that will deliver cleaner and more affordable energy, support investment in our communities and the creation of good-paying jobs.

Among the key measures the Budget set out proposals to introduce:

• Clean Electricity Investment Tax Credit – a 15% refundable tax credit for eligible investments in non-emitting electricity generation systems, abated natural gas electricity-fired electricity generation, stationary electricity storage systems, and equipment for the transmission of electricity between provinces and territories.
• Clean Technology Manufacturing Investment Tax Credit – a refundable tax credit equal to 30% of the cost of investments in machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle certain critical minerals essential to clean technology supply chains.
• Clean Hydrogen Investment Tax Credit – details of the Clean Hydrogen Investment Tax Credit announced in the 2022 Fall Economic Statement, with the levels of support varying between 15% and 40% of eligible project costs, with the projects that produce the cleanest hydrogen receiving the highest levels of support.
• Enhancing the Carbon Capture, Utilization, and Storage (CCUS) Investment Tax Credit – Budget 2023 proposes that the Investment Tax Credit for CCUS be expanded to cover additional equipment, and now be available for dedicated geological storage projects in British Columbia.
• Expanding Eligibility for the Clean Technology Investment Tax Credit – Budget 2023 proposes to expand eligibility for the refundable Clean Technology Investment Tax Credit to include eligible geothermal energy systems, further supporting the growth of Canada’s burgeoning clean technology sector. This is in addition to the support announced in the 2022 Fall Economic Statement, through this credit, for investments in clean electricity generation and storage, low carbon heating and industrial zero-emission vehicles, including related charging or refuelling equipment.

Budget 2023 also announces that the Canada Infrastructure Bank will invest at least $10B through its Clean Power priority area, and at least $10B through its Green Infrastructure priority area. This will allow the Canada Infrastructure Bank to invest at least $20B to support the building of major clean electricity and clean growth infrastructure projects.

Budget 2023 further proposes to provide $3B over 13 years to:

• Recapitalize funding for the Smart Renewables and Electrification Pathways Program to support critical regional priorities and Indigenous-led projects;
• Renew the Smart Grid program to continue grid innovation support;
• Create new investments in science-based activities to help capitalize on Canada’s offshore wind potential, particularly off the coasts of Nova Scotia and Newfoundland and Labrador.