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ARTICLE · 12 SEPTEMBER 2023

Clean Economy Tax Credits: Labour Requirements

McCarthy Tétrault
McCarthy Tétrault
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On August 4, 2023, the Department of Finance released a series of draft legislative proposals (August 4 Proposals)...

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Tax Perspectives
Tax Perspectives
Matthew Kraemer
Matthew Kraemer
Nigel Johnston
Nigel Johnston
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On August 4, 2023, the Department of Finance released a series of draft legislative proposals (August 4 Proposals) on a variety of previously announced tax measures. The August 4 Proposals can be found here and the related explanatory notes can be found here.

The August 4 Proposals include revised draft legislation in respect of the Carbon Capture, Utilization and Storage Investment Tax Credit (CCUS Tax Credit), draft legislation in respect of the Clean Technology Investment Tax Credit (CTI Tax Credit) and draft legislation specifying the labour requirements (Labour Requirements) that must be satisfied to maximize these tax credits as well as the proposed Clean Hydrogen Tax Credit and Clean Electricity Tax Credit. The Clean Hydrogen Tax Credit and the Clean Electricity Tax Credit were announced in Budget 2023 but the August 4 Proposals do not include draft legislation in respect of these credits.

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