On March 28, 2023 (Budget Day), Minister of Finance Chrystia Freeland tabled the Liberal Government’s budget, A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future (Budget 2023).

To help build Canada’s clean economy, Budget 2023 includes numerous measures incentivizing the development of projects related to clean energy and technology. 

This publication summarizes the following tax incentives included in Budget 2023:

• Clean Hydrogen Investment Tax Credit (CH Tax Credit);
• Clean Technology Investment Tax Credit (CTI Tax Credit);
• Clean Electricity Investment Tax Credit (CEI Tax Credit);
• Clean Technology Manufacturing Investment Tax Credit (CTM Tax Credit);
• Carbon Capture, Utilization and Storage Investment Tax Credit (CCUS Tax Credit);
• Flow-Through Shares and Critical Mineral Exploration Tax Credit; and
• an extension and expansion of reduced corporate income tax rates for zero-emission technology manufacturers.

Further, this publication addresses some questions that McCarthy Tétrault LLP has frequently been asked by participants in the energy and power industries.

For a discussion of these tax measures and others in Budget 2023, please see McCarthy Tétrault’s Budget 2023 Commentary.