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Canada Offers Carbon Capture Tax Credit to Reduce Emissions (1)

April 8, 2022, 2:14 PM

Prime Minister Justin Trudeauis rolling out one of Canada’s largest single industrial tax incentives to fund carbon capture projects as his government tries to deliver on ambitious climate goals by offsetting emissions from the country’s energy sector.

In a federal budget unveiled on Thursday, Trudeau proposed a refundable investment tax credit to encourage the country’s oil and gas companies to move more quickly to lower emissions.

From 2022 through 2030, the investment tax credit rates would be set at 60% for investment in equipment for direct air capture projects, 50% for equipment in all other carbon capture projects, and ...