February 22, 2022
Canada's proposed rate reduction for zero-emission technology manufacturers discussed
Canada's 2021 federal budget proposed a temporary reduction in the corporate income tax rate for qualifying zero-emission technology manufacturers, applicable for tax years beginning after 2021. Draft legislation for the proposed rate reduction (to be provided under proposed section 125.2 of the Income Tax Act) was included in a package of draft legislative proposals released for public comment by the Department of Finance on February 4. Interested parties are invited to provide comments on the draft legislation by March 7.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert