Tax Reduction for Zero-Emission Technology Manufacturing
Current Status: Open until June 18, 2021
As more countries commit to achieving net-zero emissions by 2050, the demand for zero-emission technology will only grow. To create jobs and support the growth of clean technology manufacturing in Canada, Budget 2021 proposes to reduce — by half — the general corporate and small business income tax rates for businesses that manufacture zero-emission technologies. The proposed measure is described in detail in the Budget 2021 Annex entitled Tax Measures: Supplementary Information.
This consultation seeks views and feedback on the proposed allocation method for determining income eligible for the reduced tax rates on zero-emission technology manufacturing. Specifically, Budget 2021 proposes to determine income eligible for the reduced tax rates on zero-emission technology manufacturing based on the share of a taxpayers’ labour and capital costs used in eligible zero-emission technology manufacturing activities.
We also welcome any additional comments or feedback relevant to the scope of this consultation.
Who is the focus of this consultation?Through this consultation, we want to hear from tax practitioners and members of the public. In submitting your comments, please include:
- Full name;
- Name of the organization;
- Telephone number, including area code; and
- Reply e-mail address.
Participate through email
Due to COVID-19 public health considerations, email submissions are preferred. Send us your comments at ZETM-FTZE@canada.ca with “Zero-Emission Technology Manufacturing Consultation” as the subject line.
Should you wish to provide comments by mail, please direct your submission to the attention of the Tax Policy Branch.
What’s next?We’ll be collecting your feedback and will consider your input alongside the analysis of departmental officials to help inform decisions on the proposed tax rate reductions for businesses that manufacture zero-emission technologies.
Information received through this comment process is subject to the Access to Information Act and the Privacy Act. Those providing comments are asked to indicate clearly the name of the individual or the organization that should be identified as having made the submission. In order to respect privacy and confidentiality, please advise when providing your comments whether you:
- consent to the disclosure of your comments in whole or in part;
- request that your identity and any personal identifiers be removed prior to release; or
- wish that any portions of your comments be kept confidential (if so, clearly identify the confidential portions).
Should you indicate that your comments, or any portions thereof, be considered confidential, the Department of Finance will make all reasonable efforts to protect this information.
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