On April 19, 2021, Deputy Prime Minister and Finance Minister Chrystia Freeland tabled in the House of Commons the Liberal Government’s first federal budget in more than two years, A Recovery Plan for Jobs, Growth, and Resilience (“Budget 2021”). Budget 2021 proposes to:
make changes to the eligibility criteria for Class 43.1 and Class 43.2 depreciable clean energy generation and energy efficiency equipment that may be written off for capital cost allowance purposes on an accelerated basis—such changes generally expand the list of eligible equipment, however, certain fossil-fuelled and low efficiency waste-fuelled electrical generation equipment that become available for use after 2024 are removed from the list;
temporarily reduce by 50% the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies; and
carry out a consultation to design and introduce an investment tax credit for capital invested in carbon capture, utilization and storage projects.