Canada's clean economy tax credits suffer from low uptake and flawed design
By
Seth Klein
The kind of bagel that ruins lesser bagels for you.
Summary
The article argues that Canada's federal clean economy tax credits are fundamentally flawed, not just because of slow approval processes, but because the low application rate indicates a broken model. The tax credits offer companies 15-40% rebates on capital expenditures for lowering carbon emissions, with the largest credits reserved for questionable carbon-capture projects. Despite the government's enthusiasm for this approach, the lack of uptake from businesses suggests the incentive structure is not working as intended.
Key quotes
· 3 pulledThe basic idea of these credits is that, if and when a company undertakes a capital expenditure to lower carbon emissions, the government will rebate them with a tax credit worth 15 to 40 per cent of their investment
the juiciest of the credits are reserved for dubious carbon-capture projects
The federal government is so enamoured by this model that, in its most recent spring economic update, it...
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