A survey by KPMG in Canada says business leaders want the federal government to fast-track all outstanding “green” or “clean” economy business investment tax credits.
The online survey of 534 small- and medium-sized businesses done in February found that 90% of those questioned supported speeding up the delivery of the promised incentives, The Canadian Press reports.
The tens of billions committed in last year’s federal budget included:
• An 11-year, $25.7-billion investment tax credit for clean electricity that covers 15% of investment costs for more than a dozen power generation, energy storage, and grid transmission technologies—from wind and solar, to natural gas plants with carbon capture if they’re compatible with a 2035 deadline for a net-zero grid;
• A 12-year, $17.7-billion investment tax credit for hydrogen that sets up a sliding scale for different production processes based on their carbon intensity;
• A 12-year, $11.1-billion investment tax credit for clean technology manufacturing that covers 30% of project costs;
• $20 billion in redeployed funding through the Canada Infrastructure Bank for clean power and green infrastructure;
• A commitment to begin investing the $15-billion Canada Growth Fund in the first half of this year;
• $3 billion to renew the government’s Smart Renewables and Electrification Pathways (SREP) and smart grid programs and invest in Canada’s offshore wind potential, particularly off the Nova Scotia and Newfoundland and Labrador coasts;
• $1.5 billion for infrastructure to extract critical minerals to support battery and electric vehicle manufacturing;
• $1.4 billion over 12 years in income tax reductions for zero-emission technology manufacturers.
Last week, KPMG’s Lucy Iacovelli said meeting the climate challenge and retooling the economy will require significant business investment to decarbonize and build net-zero industries and technologies.
To deliver, she added, Ottawa must make it fast and easy for companies to access the clean energy investment tax credits or they risk falling further behind U.S. and other major economies.
In the survey, 83% of the businesses said they require more assistance and incentives to decarbonize.
Some 80% of those surveyed also supported federal green-related investments or incentives to attract foreign companies to locate in Canada.
The main body of this report was first published by The Canadian Press on March 18, 2024.
