New 2023 Federal budget is heavily focused on clean and green technology adoption by introducing three new tax credits:
- Clean Technology Manufacturing Investment Tax Credit – 30% of the cost of new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals
- Clean Technology Investment Tax Credit
- Carbon Capture, Utilization, and Storage Investment Tax Credit
More information about these new programs will be available in the coming weeks or months.
In addition, the following new grants were announced:
- Clean Fuels Fund to encourage investment in the production of clean fuels, including clean hydrogen and biofuels;
- Canada Growth Fund to incentivize private sector investment into projects and companies that will grow Canada’s clean economy at speed and scale;
- Net Zero Accelerator to make large-scale investments in clean technologies;
- Low Carbon Economy Fund to support the installation of emission-reducing technologies for provinces and territories, businesses, Indigenous communities, and other organizations;
- Canada Innovation Corporation, which will support Canadian businesses in investing in research and development.
In the meantime, the funding for the following Federal incentive programs was renewed:
- CanExport – 50% of export market entry cost.
- Canada Digital Adoption Program – 90% of the digital technology assessment cost.
- Business Scale-Up & Productivity – interest-free loans covering 35%-50% of the cost of business expansion. Rules and intake procedures vary from province to province.
- Scientific Research & Experimental Development Tax Credit – 60% of the labour cost involved in R&D.
- Industrial Research Assistance Program – 80% of the labour cost involved in R&D.
- Most of the hiring incentives.
Need help with this or other government funding programs but don’t know where to start or how to prepare an application?