In Budget 2024, the Government of Canada continued their drive to implement government incentives aimed at decarbonizing the economy through providing further clarification and design details for the Clean Electricity investment tax credit the Clean Electricity ITC, and through providing an additional tax credit for electric vehicle manufacturers in the form of the EV Supply Chain ITC the EV ITC.
On April 3, 2024, the Alberta Government released additional details on the Alberta Carbon Capture Incentive Program ACCIP, which will support and accelerate the development of new carbon capture, utilization and storage infrastructure in Alberta. It is now open for industry and carbon sequestration hub operators to apply for ACCIP pre-approval, and the ACCIP rollout now includes more detail around the ACCIP s key features, eligibility criteria, eligible costs and the application process.
On Tuesday, December 20, 2023, the Federal Government delivered an early Christmas gift for clean hydrogen and clean manufacturing related businesses and tax practitioners by releasing proposed legislation for the implementation of the clean hydrogen investment tax credit the Clean Hydrogen ITC and the clean manufacturing investment tax credit Clean Manufacturing ITC.
On August 4, 2023, the Federal Government released proposed legislation for the Clean Technology Investment Tax Credit Clean Tech ITC, as proposed by the 2022 Fall Economic Statement the 2022 FES and as modified by Budget 2023. The proposed legislation largely conforms to what was previously announced, as we previously discussed following the original announcement of the Clean Tech ITC in the 2022 FES.