last year, is the United States’ most ambitious piece of climate legislation ever, offering around US$375 billion in new and extended tax credits for everything from renewable electricity generation to hydrogen production to sustainable jet fuel usage.
CME president and CEO Dennis Darby says Canadian manufacturers were encouraged by federal budget measures announced in March to counteract the U.S. legislation, but the industry is still waiting to see which investments qualify for tax credits. The association says while it acknowledges that Ottawa is in the midst of consulting stakeholders on the structure of Budget 2023’s Inflation Reduction Act response measures, it could alleviate concerns by signalling its commitment to elements that are critical to maintaining investment in Canada.
A report from TD Economics earlier this year said Canada’s financial support for the clean energy transition is competitive with that of the legislation south of the border.
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