For those who are following emerging developments in the nuclear industry,
the 2021 Canadian Federal Budget (the
"Budget") contains good news. The
green focus of the Budget includes some exciting policy levers
that, when implemented, could provide continuing support, and be
instrumental to the development of the industry and of small
modular reactors ("SMRs") in
particular. The tools are there, but questions remain around
their application, leaving many details to be determined.
In terms of policy tools, four stand out:
- Tax Break for Manufacturers of Zero-Emission
Technologies. The Budget contains an interesting proposal
to grant up to a 50% tax break in general corporate and small
business income tax rates for businesses that manufacture
zero-emission technologies. The reductions would last for
seven years, commencing on January 1, 2022 and then would be phased
out over a four year period winding up by January 1, 2032.
Details of the technologies that will
