Agriculture and Agri-Food Minister Lawrence MacAulay announced a number of tax incentives last Friday, including a particular change that serves as a step in the right direction for the clean energy industry – including solar and wind energy practices, energy from waste and cogeneration systems


As part of the Fall Economic Statement 2018, an immediate and full write-off of tax costs for clean energy equipment and technology will apply to classes 43.1 and 43.2 if acquired after the 20th of November, 2018, and will be available prior to 2028.

More specifically; as stated on the Government of Canada website, “Under Class 43.1, eligible equipment may be written-off at 30 percent per year on a declining balance basis. In general, equipment that is eligible for Class 43.1 but is acquired after February 22, 2005 and before year 2025 may be written-off at 50 percent per year on a declining balance basis under Class 43.2.” Read more here.

As an industry striving toward keeping emissions low and employing more eco-conscious power projects and equipment, this is excellent news.

The highlighted tax incentives also included an immediate write-off of full costs applying to classes 43 and 53 concerning the manufacturing and processing of machinery and equipment, an Accelerated Investment Incentive which would fiscally support businesses with the purchases of buildings, machinery or equipment, and a Lowered Marginal Effective Tax Rate, reduced from 17 per cent to 13.8 per cent, which would give businesses in Canada “the lowest overall tax rate on new business investment in the G7, significantly lower than that of the United States”. (Re: Government of Canada).

Also included in the announcement was some positive news for farmers: a $25 million, 5-year investment to support Canadian agriculture and agri-food exporters, including plans to support new agricultural market access and the transportation of goods.

“[The incentive] puts more money in the pockets of farmers (and) quicker, and also down the chain and the line, the manufacturers, everything. It does a lot for the economy all the way and keeps the farmer on the cutting edge with top-notch equipment”, said MacAulay. (Re: The Guardian).