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|Canada is a rich environment for green investments.|
|(cc) C. Barabanov|
Leading companies recognize that social, environmental, economic and ethical factors directly affect their business strategy and success. According to PricewaterhouseCoopers, as sustainability becomes an integral part of the executive agenda, organizations need to find the right balance between generating profits and reducing the impact of operations on the environment.
Now for the first time in Canada, PwC has brought to the marketplace a clear, concise list of the credits and incentives that exist federally and provincially across Canada.
“Going green is not an impossible task,” says Lana Paton, a PwC Tax partner with the firm’s Sustainable Business Solutions (SBS) practice. “Many companies don’t realize that there are many federal and provincial incentives that could help them go green, and even make money-critical in today’s economy. While going green is not yet compulsory in Canada, it’s only a matter of time before it is and those who make the right moves now will be those who benefit today and in the future.”
For example, an eligible private Canadian company carrying out qualifying scientific research and experimental development activities in Ontario may qualify for tax credits and funding under the Industrial Research Assistance Program (IRAP). Assuming such a company incurs $500,000 of eligible expenditures in Ontario and receives the maximum IRAP funding, that company can receive government incentives of nearly $320,000 under the two programs — that’s 64% of the total eligible costs.
Some of the more notable federal incentives among those identified by PwC include:
Scientific Research and Experimental Development (SR&ED) Investment Tax Credits: Designed to encourage development of new or improved products and processes in Canada. While they may not realize it, many companies in most industries already do conduct SR&ED. Can equal 20% of eligible expenditures (for Canadian-controlled private corporations the credits are 35% on up to $3 million of annual expenditures and are wholly or partially refundable). Unused credits can be carried back three years or carried forward 20. Additional credits may also be available provincially.
ecoENERGY for Renewable Heat: Incentives for installing solar space and water heaters. $80,000 for solar air projects and $400,000 for solar hot water projects with a corporate maximum of $2 million.
ecoENERGY for Renewable Power: Incentives for the supply of clean electricity from renewable sources (i.e. wind, bio-mass, ocean energy etc.) $0.01 kilowatt per hour. Maximum $80 million per project, $256 million per recipient.
ecoENERGY for Retrofit incentive: Grants for companies that retrofit industrial or commercial buildings, equipment, systems or processes that improve energy conservation and efficiency. Up to 25% of eligible project costs. Maximum $50,000 per industrial facility, $250,000 per corporation.
Industrial Research Assistance Program: Funding and mentoring for Canadian companies to encourage innovative products, processes and technology. Up to 50% of eligible project costs. Maximum of $175,000.
SD Tech Fund: Two rounds of funding annually to support the late stage development and pre-commercial demonstration of new technologies that will address clean technology solutions. Up to 50% of eligible costs per project.
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 155,000 people in 153 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. In Canada, PricewaterhouseCoopers LLP and its related entities have more than 5,200 partners and staff in offices across the country.