Liberals move forward to cut taxes for clean businesses

A re-elected Liberal government will cut taxes in half for companies that produce zero-emission technologies, which will create jobs, grow Canadian businesses, and help us get to net-zero.

In the coming years, the market for clean technology is expected to exceed $2.5 trillion by 2022. Canada will lead the way and achieve the ambitious goal of net-zero emissions by 2050.

“Today’s announcement will help release the potential of our engineers and entrepreneurs. As one of North America’s biggest tech hubs, Toronto is full of people with great ideas. This a huge opportunity and should be taken as huge encouragement to all the zero-emission innovators hoping to find a market for their ideas,” said Adam Vaughan.

A re-elected Liberal government will make Canada the most attractive place to start, and grow, a business that produces zero-emission technology. We will:

  • Cut corporate taxes in half for companies that develop technologies or manufacture products that have zero emissions;
    • The corporate taxes for small clean tech businesses will be cut from 9 per cent to 4.5 per cent, and the larger clean tech companies will see their taxes drop from 15 percent to 7.5 per cent.
  • Continue to lead by example and ensure all federal buildings run on clean electricity by 2022; and
  • Leverage the purchasing power of the federal government to further drive clean technology adoption, by strengthening existing green procurement policies.

This builds on a strong Liberal record of encouraging businesses to invest in sustainability and create jobs, including:

  • Allowing businesses to immediately write-off the full cost of installing clean energy equipment; and
  • Investing in the first ever completely electric mine, as well as the first zero-emissions aluminum smelter.

“From electric cars to renewable power, we’ve made huge leaps in what’s possible when it comes to protecting our air, our water, and our future,” said Justin Trudeau. “While Conservatives want to make polluting free again, we’re looking forward — to the next generation of clean technology, built right here by Canadians.”

Backgrounder: Cutting Taxes for Clean Tech Businesses