Canada extends federal tax credits to waste biomass harnessed for energy
The tax credits are already in place for other designated clean technologies.
The Statement said that, during the course of production, industries such as forestry and agriculture generate organic by-products, like leftover wood chips and crop residues, which can be used to generate affordable energy.
The government therefore proposed to expand eligibility for the 30% Clean Technology investment tax credit.
It is available for businesses investing in eligibile property that is acquired and becomes available for use on or after 21 November.
A 15% Clean Electricity investment tax credit is in place for larger systems that can facilitate inter-provincial/territorial transmission.
The labour requirements to pay prevailing wages and provide apprenticeship training opportunities will apply to the expanded investment tax credits.
"Turning waste biomass into electricity and heat is, on a lifecycle basis, a carbon-neutral energy solution, with potential to be carbon-negative when combined with carbon capture, utilisation, and storage, while providing new opportunities for major Canadian industries," said the Statement.