Federal Budget 2023 – Clean Energy Economy Announcement

The Federal Government presented its 2023 Budget today, introducing a $20 billion investment into a Clean Energy Economy by announcing tax credits for clean energy and clean tech to help build a prosperous low-carbon future – this means a wave of new incentives & green jobs!

“The budget offers three investment tax credits. The first — equal to 30 percent of the cost of investments in new machinery and equipment used to manufacture or process key clean technologies and to extract, process, or recycle critical minerals — is expected to cost $4.5 billion over five years.

The Clean Hydrogen Investment Tax Credit will cover somewhere between 15 and 40 percent of eligible project costs; higher rebates will go to projects that produce the cleanest hydrogen. The hydrogen credit is worth about $5.6 billion over five years.

The budget also provides $6.3 billion over five years to fund the Investment Tax Credit for Clean Energy, which will offer a credit of 15 percent for investments in non-emitting electricity, natural gas-fired electricity generation, and energy storage.

Lastly, the Investment Tax Credit for Carbon Capture, Utilization, and Storage will cost about $520 million over five years and is available to businesses that invest in storing carbon dioxide or use it in other industrial processes. 

To be eligible for the highest rates for these investment credits, businesses must pay their employees a total compensation package that is equal to the existing union wage for the same or comparable jobs, including pensions and benefits.

The budget also earmarks $650 million over ten years for monitoring, assessment, and environmental restoration work in the Great Lakes, Lake Winnipeg, the St. Lawrence River, and other major bodies of water.”