2023 Fall Economic Statement: Clean Economy Measures

On November 21, 2023, the Department of Finance of Canada released its Fall Economic Statement (the "Economic Statement"). The Economic Statement proposes updates to certain measures to grow Canada's clean economy previously introduced by the federal government. Such measures include certain new investment tax credits ("ITCs") to promote investments in the clean economy.

The Economic Statement proposes amendments to the Income Tax Act (Canada) to alleviate certain adverse tax consequences of receiving concessional loans (i.e., loans that do not bear interest or that bear interest at rates which are below-market) on the claim of ITCs. The Economic Statement also clarifies and expands the Clean Hydrogen ITC (the "CH ITC"), and expands the Clean Technology ITC (the "CT ITC") and the Clean Electricity ITC (the "CE ITC"). The CH ITC was introduced by the federal government's Budget 2023. The CT ITC and the CE ITC were introduced by the 2022 Fall Economic Statement and