On April 7, 2022, Finance Minister (and Deputy Prime Minister) Chrystia Freeland tabled the Liberal Government's federal budget, A Plan to Grow Our Economy and Make Life More Affordable ("Budget 2022").
Among other things, Budget 2022 proposes to:
- introduce an investment tax credit for carbon capture, utilization, and storage, which would be refundable and available to businesses incurring eligible expenses beginning January 1, 2022;
- expand capital cost allowance Classes 43.1 and 43.2 to include air-source heat pumps that are used primarily for space or water heating; and
- include the manufacturing of air-source heat pumps used for space or water heating as an eligible zero-emission technology manufacturing or processing activity.
Budget 2022 also proposes to:
- provide all provisions of the Nisga'a Nation Taxation Agreement with the force of law by amending the Nisga'a Final Agreement Act (the "Final Agreement Act");
- amend the Final Agreement Act to provide for an income tax exemption to citizens of the Nisga'a Nation who receive amounts from a registered pension plan if the employment income to which the pension amounts are based was exempt from tax.
For a discussion of these tax measures and others in Budget 2022, please see McCarthy Tétrault's Budget 2022 Commentary. 2022 Canadian Federal Budget Commentary – Tax Measures | McCarthy Tétrault
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