Minister Guilbeault highlights the big five new Clean Investment Tax Credits in Budget 2023 to support sustainable made-in-Canada clean economy

From: Environment and Climate Change Canada

News release

April 5, 2023 – Saint-Jérôme, Quebec

Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change, highlighted the transformational new big five Clean Investment Tax Credit in Budget 2023, which will help produce, manufacture, or transition to clean energy in Canada, while supporting good jobs for the middle class and ensuring more vibrant communities across Canada.

The following tax credits outlined in Budget 2023 will support investments in a thriving, sustainable, made-in-Canada clean economy:

  • Introducing a 15 percent refundable Clean Electricity Investment Tax Credit for eligible investments in technologies that are required for the generation and storage of clean electricity and its transmission between provinces and territories, which is available to taxable and tax-exempt entities.
  • Introducing a refundable Clean Technology Manufacturing Tax Credit to cover 30 percent of costs in new machinery and equipment used to manufacture or process clean technologies and extract, process or recycle critical minerals.
  • Moving forward with the Clean Hydrogen Investment Tax Credit first introduced in the 2022 Fall Economic Statement to support between 15 and 40 percent of eligible projects’ 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.
  • Expanding eligibility for the refundable 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, which total over $60 billion over the coming ten years, will support green innovation in the private sector, grow our economy, and create or secure thousands of good middle-class jobs.

Budget 2023 also included $20 billion toward the Canada Infrastructure Bank to support the building of major clean-electricity and clean-growth infrastructure projects. To further invest in a clean electricity grid, Budget 2023 also included $3 billion to the Smart Renewables and Electrification Pathways Program; the Smart Grid program to continue to support electricity grid innovation; and other science-based activities to help capitalize on Canada’s offshore wind potential. Budget 2023 investments in abundant and low-cost clean electricity will underpin other investments needed to create hundreds of thousands of middle-class jobs, provide the energy that will power our daily lives and the entire Canadian economy, and provide more affordable energy to millions upon millions of Canadian homes.

Quotes

“There has never been a more impactful budget in the history of Canada to fight climate change and create a clean, electrified economy. This budget outlined over $80 billion in new measures to fight climate change, starting with five major new tax credits to accelerate clean tech in Canada. This brings the total of everything we are doing to fight climate change to $200 billion. The investments in the new and expanded Clean Tax Credits we are proposing in Budget 2023 will help create middle-class jobs and long-term economic growth while contributing to building the net-zero industries of tomorrow.”

– The Honourable Steven Guilbeault, Minister of Environment and Climate Change

Quick facts

  • With a responsible fiscal plan that will see Canada maintain the lowest deficit and the lowest net debt-to-GDP ratio in the G7, Budget 2023 will help build a Canada that is more secure, more sustainable, and more affordable for people from coast to coast to coast.

  • Canada has made a remarkable recovery from the COVID recession. Canada’s economic growth was the strongest in the G7 over the last year, and today, 830,000 more Canadians are employed than before the pandemic, including 136,900 people here in the province of Quebec. Inflation in Canada has fallen for eight months in a row, our unemployment rate is near its record low, and, supported by our Canada-wide system of affordable early learning and child care, the labour force participation rate for women aged 25 to 54 reached a record high of 85.7 percent in February.

  • Budget 2023 builds on this important progress.

  • To make life more affordable, Budget 2023 delivers the new Grocery Rebate, offering targeted inflation relief for 11 million Canadians and families who need it most, with up to an additional $467 for eligible couples with children; an additional $234 for single Canadians without children; and an additional $225 for seniors, on average. The government is also taking action to crack down on junk fees and predatory lending, lower credit card transaction fees for small businesses, and help Canadians keep more money in their pockets.

  • To strengthen Canada’s universal public health care system, the budget delivers $198.3 billion, including the $37.409 billion here in Quebec, to reduce backlogs, expand access to family health services, and ensure provinces and territories can provide the high quality and timely health care Canadians expect and deserve. Budget 2023 also introduces a new Canadian Dental Care Plan to help up to nine million Canadians and ensure that no Canadian has to choose between taking care of their health and paying the bills at the end of the month.

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Contacts

Kaitlin Power
Press Secretary
Office of the Minister of Environment and Climate Change
819-230-1557
Kaitlin.Power@ec.gc.ca

Media Relations
Environment and Climate Change Canada
819-938-3338 or 1-844-836-7799 (toll-free)
media@ec.gc.ca

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