This week’s federal budget was lean on spending, and a
disappointment overall for industry. However, it did include forward looking
investment in carbon capture and storage technology – a crucial tool in climate
change management. It also offered some relief through incentives for renewable
generation and capital cost allowance treatments.
Specifically, the federal government is placing $240 million
in trust for Saskatchewan to develop a full-scale commercial demonstration of
carbon capture and storage (CCS) in the coal-fired electricity sector. This
money will be matched by the province.
An additional $5 million is being invested in Nova Scotia to
research the potential for carbon storage in that province. Meanwhile, $10
million is being invested over two years for research and analysis on biofuels
emissions.
The government is also expanding the accelerated capital
cost allowance for clean-energy generation equipment to additional applications
involving ground-source heat pump and waste-to-energy systems.
It will extend GST/HST relief to land leased to situate wind-
or solar-power equipment for the production of electricity.
The government is also providing further assistance for
Canada’s manufacturing and processing sector by extending accelerated capital
cost allowance (CCA) treatment for investment in machinery and equipment for
three years. Specifically, the 50-per-cent straight-line accelerated CCA
treatment will apply for one additional year, and the accelerated treatment
will then be provided on a declining basis over a two-year period.
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