2023 April 5
When it comes to clean energy and clean technology, Canada is a world leader. That’s why companies from around the world continue to choose Canada – and above all, Canadian workers – to grow their operations. The investments we are proposing in Budget 2023 will help us continue to build an economy that works for everyone, with good middle-class jobs, while leaving a stronger, healthier future for our kidsThe Rt. Hon. Justin Trudeau, Prime Minister of Canada
In Ontario, from Honda Canada retooling its operations here in Alliston to build hybrid-electric CR-Vs to Volkswagen choosing to build its first overseas electric vehicle battery plant in St. Thomas, it’s clear that manufacturing workers are at the forefront of building the clean economy.
The Prime Minister, Justin Trudeau, was at Honda Canada in Alliston, Ontario today to highlight both new and expanded investment tax credits proposed in Budget 2023—A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future to help produce, manufacture, or use clean energy and clean technology in Canada, while supporting good jobs for the middle class.
The following tax credits outlined in Budget 2023 will support job-creating investments in a thriving, made-in-Canada clean economy right across the country:
- Introducing a 15 per cent refundable Clean Electricity Investment Tax Credit for eligible investments in technologies required for the generation and storage of clean energy and its transmission between provinces and territories, which is available to taxable and certain tax-exempt entities;
- Introducing a refundable Clean Technology Manufacturing Tax Credit to cover 30 per cent of investments in new machinery and equipment used to manufacture or process clean technologies and extract, process, or recycle key critical minerals;
- Moving forward with the Clean Hydrogen Investment Tax Credit, first announced in the 2022 Fall Economic Statement, to support between 15 and 40 per cent of eligible project 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, and provide tax credit access to geological storage projects in British Columbia; and
- Expanding eligibility for the refundable 30 per cent 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 build on the work we have already done from coast to coast to coast to grow our clean economy and create and secure tens of thousands of good middle-class jobs. Since the beginning of 2022, Canada has attracted historic investments across our electric vehicle supply chain – from mining to manufacturing – and secured or created over 18,000 jobs in the process.
Budget 2023 lays out the federal government’s plan to build a stronger, more sustainable Canadian economy for everyone. It will continue to deliver real results, make life more affordable, and build a healthier, cleaner future for Canadians from coast to coast to coast.