Greg Johnson, Wesley Novotny and Brendan Sigalet write for the Resource Sector Taxation journal on Federal tax policies aimed at reducing greenhouse gas emissions by incentivizing clean energy technologies. The article reviews various proposed initiatives and existing incentives, emphasizing their integration with existing legislation and the importance of providing certainty to businesses making investment decisions.
Part I of the paper focuses on the government's efforts to promote exploration and development of critical minerals and introduces the Federal government's carbon capture investment tax credit, which was recently tabled in the House of Commons, while also discussing the tax incentives relating to LNG production. Part II (still to come) will explore the Federal government's recent investment tax credit proposals related to clean technology, clean technology manufacturing, clean hydrogen production, clean electricity and the zero-emission technology manufacturing tax deduction.
Examining the role of flow-through shares in incentivizing investment in key minerals like helium, graphite and lithium—crucial for the green energy transition—the authors highlight the complexity of these tax policies, their potential impact on new technology development and the need for competitive positioning against global policies like those of the U.S.
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