On 28 March 2023, Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget. The budget:
- Introduces a refundable investment tax credit for certain clean hydrogen equipment.
- Expands the refundable investment tax credit for clean technology equipment to include certain geothermal energy systems.
- Announces a public consultation on a refundable investment tax credit for certain clean electricity systems and equipment.
- Announces proposed labor requirements that would apply to the clean hydrogen, clean technology, and clean electricity investment tax credits.
- Introduces a refundable investment tax credit for certain clean technology manufacturing and processing equipment.
- Expands the eligible activities and extends the phase out period for the reduced tax rates that apply to zero-emission technology manufacturing and processing income.
- Provides design and implementation details for the 2% tax on the net value of share repurchases by public corporations that was announced in the 2022 Fall Economic Statement.
- Announces a consultation on specific proposals to strengthen the general anti-avoidance rule (GAAR).
This PwC Tax Insights provides further information on these measures.