justin-trudeau
Canadian prime minister Justin Trudeau. /File

The Trudeau government is hoping that a new tax incentive for businesses investing in wind turbines and solar panels will help juice investment and job growth in Canada’s clean energy sector.

At the same time, Finance Minister Bill Morneau is also proposing another new incentive that would apply to oil and gas sector property expenses. Canada has promised for years to phase out inefficient fossil fuel subsidies and continues to do so.

Morneau’s Nov. 21 fiscal update proposed a new “immediate expensing” temporary rule that would allow businesses to immediately write off the cost of “specified clean energy equipment” on their taxes.

For example, a company wanting to install $100 million worth of wind turbines could deduct the whole cost in their taxes in the year they incurred the cost, as opposed to $40 million under the current rules, resulting in about $16 million in tax savings.

“This will help achieve climate goals, and boost Canada’s global competitiveness,” said Morneau during his speech unveiling the fiscal update in the House of Commons.

Editorial Team
The Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with data and insights to deliver useful news updates. We are experts with the mission to inform, educate and inspire the industry. We are passionately curious, enthusiastic, and motivated to positively impact the world. Send us a tip via hello @ pvbuzz [dot] com.

2019 Sales of Light Duty Plug-in Electric Vehicles Are Expected to Increase Over 80 Percent from 2017

Previous article

Alberta is investing $200 million in locally generated electricity projects

Next article

Comments

Comments are closed.