![]() ![]() Eligible expenses would include the cost of purchasing and installing eligible equipment used in an eligible CCUS project, so long as the equipment was part of a project where the captured CO2 was put to an eligible use. The CCUS tax credit would be refundable and available to businesses that incur eligible expenses starting January 1, 2022. Investment tax credit for carbon capture, utilization, and storageīudget 2022 proposes to introduce an investment tax credit for carbon capture, utilization, and storage (CCUS). Groups subject to the additional 1.5 per cent income tax will be permitted to allocate a $100 million taxable income exemption amongst group members. An additional 1.5 per cent income tax will apply to taxation years ending after Budget Day. Groups subject to the CRD will be permitted to allocate a $1 billion taxable income exemption amongst group members. The CRD would be determined based on a corporation’s taxable income for taxation years ending in 2021, payable in equal parts over five years beginning in 2022. Business Income Tax Measures Canada Recovery Dividend (CRD) and additional tax on banks and life insurersīudget 2022 proposes two new measures aimed at ensuring financial institutions help pay for the more than $350 billion spent fighting the COVID pandemic, on the basis that they made significant profits during the pandemic and recovered faster than other parts of the economy.īudget 2022 proposes to introduce the CRD, a one-time 15 per cent tax on bank and life insurer groups. Projections see this measure back on the pre-pandemic track by fiscal 2026-27. While it may not be enough for fiscal hawks, the deficit is projected to decrease significantly (from $113.8 billion in fiscal 2021-22 to $52.8 billion in fiscal 2022-23) and the Government has reaffirmed its commitment to the debt-to-GDP ratio, with Freeland stating: “This is our fiscal anchor – a line we shall not cross…”. In addition, Budget 2022 includes a new Canada Water Agency to protect freshwater, tax credits for carbon capture, investments in clean energy including small modular reactors, and funding for wildfire control. Sales mandates for zero emissions vehicles are to be put in place, supported by continuing incentives for buyers and a national network of charging stations. The Government also signaled its intention to modernize both the SR&ED research tax incentive program and the Competition Act (Canada).Īs with previous budgets, the Government has increased funding for green initiatives. ![]() To increase productivity, in addition to expected improvements in workforce participation by women due to the implementation of affordable childcare, the Government is looking at creating a new Innovation and Investment Agency and investing in programs targeted at mining critical minerals, resource development supply chains, and benefits-sharing arrangements with Indigenous communities. The Government will also review the use of housing as an asset class by large investors and will institute a two-year prohibition on foreign commercial enterprises acquiring non-recreational residential properties. On the housing front, a new housing accelerator fund and targeted investments in new home building, new rental units, and affordable housing combine with increased funding to existing programs for more than $10 billion in additional spending over the next five years. In addition to the tax measures discussed in more depth below, the Government is looking to make investments on what it sees as key issues confronting Canada in the next five years. Budget 2022, presented by Deputy Prime Minister and Minister of Finance Chrystia Freeland, focused on housing, productivity, and the environment. The 2022 Federal Budget (Budget 2022) tabled on Ap(Budget Day) sets its sights on moving on from COVID measures to building the Canada that follows. ![]()
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