By Erin Flanagan, director of the federal policy program at the Pembina Institute.
For clean energy enthusiasts, yesterday’s budget brought lots of good news. From public transit to renewables in remote communities, the budget made investments that support a thriving low-carbon economy. Here are our top highlights from yesterday’s budget:
Tax Measures for Clean Technology
Budget 2016 announced that the federal government’s Accelerated Capital Cost Allowances (ACCA) will extend to electric vehicle (EV) infrastructure and energy storage equipment. The ACCA is a policy tool that allows certain industries to write-off investments in equipment and technologies more quickly than the standard rate provided by government. As such, it supports investment and growth in those industries — making it a very useful tool to apply to climate friendly technologies.
This depreciation program will lower costs and risk to investors looking to jump into the energy storage or EV space. Canada needs more clean electricity to fuel its transition to a low carbon economy — and this commitment will enable further clean technology deployment across the country.