Taxpayers may want to provide feedback on the design of a new investment tax credit (ITC) for carbon capture utilization and storage (CCUS) projects. Finance is seeking input on several key elements of the tax credit, currently scheduled to come into effect in 2022, including:
- The type of projects that should be eligible
- The type of CCUS capital investments that should be eligible
- The rate of incentive
- Potential CCUS projects from varying industrial subsectors.
Finance says it intends for the new ITC to be available for a broad range of CCUS applications across different industrial subsectors (e.g. concrete, plastics, fuels), including blue hydrogen projects and direct air capture projects, but not enhanced oil recovery projects.
Stakeholders are invited to provide comments on the government's proposed approach by September 7, 2021.
For more information, contact your KPMG advisor.
Information is current to June 14, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500