In addition to the above tax credits, the budget also expands the eligible activities that qualify for the existing reduced rates for zero-emission technology manufacturers to include certain nuclear manufacturing and processing activities, for taxation years beginning after 2023. However, multiple tax credits may be available for the same project, if the project includes different types of eligible property. The budget notes that businesses can claim only one of the above credits, despite possible eligibility for more than one tax incentive. It also adds British Columbia to the list of eligible jurisdictions for geological storage, changes the validation requirements for CO2 storage in concrete, and states the intention to apply labour conditions to the CCUS credit, with details to follow later this year. This year’s budget expands the proposed CCUS credit to make certain dual-use equipment that produces heat and/or power and uses water eligible for the credit. The government requested public comments on draft legislation for the refundable carbon capture, utilization and storage (CCUS) tax credit in August 2022. Investment Tax Credit for Clean Electricity: provides a refundable 15 per cent credit applicable to certain eligible investments in non-emitting electricity generation systems, including wind, solar, hydro, nuclear, and specific electricity generation, storage, and transmission systems.
Investment Tax Credit for Clean Technology Manufacturing: refunds up to 30 per cent of the capital cost of eligible depreciable property used for clean technology manufacturing and processing, including for extraction and processing of critical minerals.
Budget 2023 expands the credit to include specific geothermal energy equipment and systems.
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