The 2023 Canadian federal budget introduced a new Clean Technology Tax Credit (CTTC) which allows for SolShare to get 30% of the cost of a solar energy system back from the government.
Recently the draft legislation for the tax credit was released. There is a requirement in the legislation that if “that if the property is leased by the taxpayer to another person, that person must be a qualifying taxpayer (i.e., a taxable Canadian corporation).” In many cases on-site Power Purchase Agreements (PPAs) are considered a lease. This means that we would not be able to do leases or PPAs with Government Buildings, non-profits, First Nations, unincorporated farms or business that are sole proprietorship.
You can offer by feedback by emailing Consultation-Legislation@fin.gc.ca The Canadian Renewable Energy Association will also be meeting with the finance ministry in the next few days. You can ask them to lobby for change by emailing Fernando
Melo <fmelo@renewablesassociation.ca>.
Here is what I would recommend for talking Points.
• Please amend the Clean Technology Tax Credit (CTTC) legislation
so that if the property is leased by the taxpayer to another person,
that person may be not just a Canadian Corporation but also a Canadian
Government Entity (Federal, Municipal or Provincial), a First Nation
Government or Agency, a Canadian based non-profit, or Canadian resident
sole proprietor.
• Also provide clarity that the lease requirement also applies to
on-site Power Purchase Agreements (PPAs).
• The Clean Technology Tax Credit (CTTC) is meant to make Canada
competitive with the US and the US ITCs do restrict leases and PPAs in
the same way that the current CTTC legislation does.
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