Department of Finance Canada highlighted the federal CCUS investment tax credit during a visit to the Polaris carbon capture project.
The Carbon Capture, Utilization, and Storage investment tax credit, which received Royal Assent on June 20, 2024, is a refundable tax credit of up to 60 per cent of eligible expenditures for carbon capture, transport, and storage or use, available from January 1, 2022, to December 31, 2040.
To ensure Canadian workers benefit, labour requirements tied to the Carbon Capture, Utilization, and Storage investment tax credit require businesses to pay prevailing union wages and create apprenticeship opportunities in order to receive the maximum tax credit rate.
From 2022 through 2030, the maximum Carbon Capture, Utilization, and Storage investment tax credit rates are:.
From 2031 to 2040, the investment tax credit rates will be halved and fully phased out after 2040.
For project sponsors, public financing and investment tax credits can affect whether major industrial, clean-energy, or resource projects are economic enough to proceed.