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:
- 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;
- include the manufacturing of air-source heat pumps used for space or water heating as an eligible zero-emission technology manufacturing or processing activity; and
- review the Income Tax Act (Canada)'s scientific research and experimental development (SR&ED) program.
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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