October 12, 2022
Update provided regarding Canada's proposed federal investment tax credit for carbon capture, utilization and storage
Canada's Department of Finance released for public comments on August 9, draft legislative proposals to the Income Tax Act (the Act) and the Income Tax Regulations (the Regulations) related to the investment tax credit for carbon capture, utilization and storage (CCUS) previously announced as a part of the 2021 federal budget and updated as a part of the 2022 federal budget. Interested parties were invited to provide comments on the draft legislative proposals by September 30. As such, the proposals may undergo further amendments before they are tabled in a bill.
A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.
Full text of Tax Alert