Even Hydro-Quebec is eligible for tax credits from the federal government, which will spend more than $20 billion to help companies make “green” investments and produce clean electricity in the country.
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Justin Trudeau’s government intervened in an area normally reserved for the provinces, jumping with both feet into the sandbox of François Legault and Pierre Fitzgibbon: clean electricity.
Today’s budget provides for a 15% eligible tax credit for investments in zero-emission power generation systems (such as wind or solar), reduced natural gas power generation (where emissions are partially captured), power storage systems, and provincial-territory power transmission facilities.
Any company is eligible, including Crown Corporations like Hydro-Québec or Hydro One in Ontario. The credit applies to new construction or renovation projects. “Energy storage tax credits are good for Hydro-Québec. His solar, wind or dam projects need to be saved,” said Robert Asselin, vice president of public policy at the Business Council of Canada.
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clean hydrogen
Another recoverable tax credit, this 30%, applies to investments in “machinery and equipment used in the manufacture or transformation of the main clean technologies and the extraction, transformation or recycling of certain critical minerals”.
The 2023 budget also outlines the terms of the clean hydrogen investment tax credit announced in autumn 2022, which will range from 15% to 40% of eligible costs.
Combined, these three tax credits add up to nearly $20 billion. The budget also announces that Canada Infrastructure Bank will invest at least $10 billion in clean energy and another $10 billion in green infrastructure.
Atlantic loop
Finally, Ottawa wants to move forward with its Atlantic Loop project, which is inter-provincial transmission lines that will deliver clean electricity between Quebec, New Brunswick and Nova Scotia. The federal government has given itself until 2030 to complete the project and intends to continue negotiations on this topic with the federal states.
“We talked about it for a long time, but I don’t believe it,” said Robert Asselin. Energy is regulated at the provincial level, they are not integrated systems. There is also a market aspect, Hydro makes money from sales in the United States,” he explains.
Lower credit card fees
Good news for SMBs as more than 90% of businesses accepting credit cards in Canada will benefit from a reduction in their transaction fees of up to 27% compared to the current average rate. This reduction in “interbank fees” paid to companies like Visa or Mastercard will save small businesses about $1 billion over five years. You also benefit from free access to online fraud protection and cybersecurity resources.
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