May 18, 2022
Canada's proposed federal investment tax credit for carbon capture, utilization and storage discussed
Canada's 2021 federal budget proposed an investment tax credit for businesses that incur eligible expenditures related to carbon capture, utilization and storage (CCUS) as part of the federal government's overall plan to achieve net-zero emissions by 2050. On June 7, 2021, the Department of Finance launched consultations with stakeholders. Budget 2022 announced an updated version of the credit. The credit would be refundable and available to businesses that incur eligible expenses starting January 1, 2022. Draft legislation has not yet been released.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert