With inflation at its highest level in decades, rising interest rates and fears of an economic recession, EY professionals anticipate that this year’s 2023 federal budget will focus on delivering incentives that spur sustainable and long-term growth, while reassuring Canadians that their interests are being prioritized.
The EY Tax Alert outlines topics for discussion, which may include key themes such as:
- Sustainability: possible investment tax credits for clean technologies, including clean hydrogen and carbon capture, utilization and storage (CCUS) to help Canada transition to a greener economy, reduce its carbon footprint and meet its climate goals. In addition to further details around the Canada Growth Fund, which aims to attract private capital investment.
- Innovation: further details on the Canadian Innovation and Investment Agency along with a review of the Scientific Research & Experimental Development (SR&ED) tax credit and potential adoption of a patent box regime that could encourage greater investment in research and development.
- Talent: Canada’s response to the US Inflation Reduction Act (IRA) offering generous tax incentives for clean technology investments, which poses a risk of losing skilled talent and capital to the US.
Fred O'Riordan, National Tax Policy Leader, EY Canada and Stéphane Leblanc, Tax Partner, EY Private will be attending the budget lock up on March 28 and are able to provide direct insights on the federal budget and its impact on Canadian citizens and businesses. They will also be hosting a webcast that evening at 6:30 pm EDT to share insights into what was covered. Register for the event here.
Additionally, EY business subject matter experts are available to provide insights.
To learn more about the Canadian federal, provincial and territorial budgets or explore EY's Tax Alerts, click here.
To engage a spokesperson, or for more information, please contact Nicolette Addesa, firstname.lastname@example.org, 416-941-3336.