Ontario — The Canadian government unveiled its Budget 2023, which includes a clean technology Investment Tax Credit to accelerate the deployment of solar, wind, energy storage and other clean-energy technologies.
The Investment Tax Credit, a direct response to the Inflation Reduction Act passed last summer in the United States, is a refundable 30% tax credit on the capital cost of investments made by taxable entities in solar PV, wind, and energy-storage technologies.
The Credit will be available to all project spending from March 28, 2023, to 2034.
“The choice to pursue investment tax credits for clean technology, like wind, solar, storage and green hydrogen, will allow Canada to take a competitive lead in accelerating the decarbonization of the energy sector,” said Evan Wilson, Senior Director of Policy and Government Affairs at CanREA, who was on site for the introduction of the Budget.
CanREA notes that Canada must expand solar and wind energy capacity almost tenfold to meet its commitment to achieving net-zero GHG emissions by 2050.
“The 2023 Budget demonstrates Canada’s strong leadership in leveraging policy, programs and the tax system to accelerate decarbonization while supporting a strong economy, with new investment certainty for solar energy, wind energy, energy storage and green hydrogen,” said Brandy Giannetta, CanREA’s Vice-President of Policy and Government Affairs.
CanREA also says it expects the deployment of new solar, wind and storage to accelerate significantly, with support from the new investment tax credit, compared to the most recent data released in January 2023.
“Today’s announcements are a strong and necessary step, accelerating our progress toward net zero. Canadian investment tax credits will stabilize investment opportunities while safeguarding affordability for Canadians,” said Vittoria Bellissimo, President and CEO at CanREA. “These new incentives will help create good jobs in clean energy and make Canada a leader in the energy transition.”