Geothermal receives tax and financial support in new budget legislation in Canada
The Canadian Geothermal Energy Association has been able to push certain federal policies to include budgetary mechanisms for geothermal projects in Canada.
The Canadian Geothermal Energy Association (CanGEA) informs on a policy victory in Ottawa. Bill C-63, A second Act to implement certain provisions of the budget tabled in Parliament on March 22, 2017 and other measures has received royal assent and is now law. CanGEA’s Federal government outreach efforts proved fruitful in that:
- Accelerated capital cost allowance has been extended to a broader range of geothermal projects and expenses
(including eligibility for transmission equipment expenses)
- The range of geothermal energy project expenses that are eligible as Canadian renewable and conservation expenses, which can be fully deducted in the year incurred
- Geothermal projects can claim exploration wells and flow-through shares for all project types as well as other heat transfer equipment
The changes above represent major policy victories for CanGEA in 2017, as they are a direct result of CanGEA’s federal government outreach efforts.
Disclaimer: the author is a board member on the board of CanGEA