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An analysis from Borden Ladner Gervais, Taxand Canada
Canada’s clean economy investment tax credits remain a key incentive supporting the country’s transition to net-zero emissions, helping to underpin the financial viability of projects ranging from renewable energy generation to battery storage and carbon capture.
Recent analysis from Borden Ladner Gervais highlights that businesses claiming these credits can access the full tax credit rate only if they meet specific labour requirements, including prevailing wage standards and apprenticeship commitments. Failure to do so can reduce the available tax credit by 10 percentage points, potentially impacting project economics and investment returns.
Steve Suarez from our Canadian member firm, Borden Ladner Gervais, also examines new guidance from the Canada Revenue Agency, which provides further clarity on how these labour requirements should be applied in practice.
As clean economy projects continue to attract significant investment, businesses are being encouraged to review their workforce arrangements, compliance processes and documentation carefully to ensure they remain eligible for the maximum level of support.
You can read the full analysis here.
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