Federal Budget

In Brief 

On March 28, 2023, the Deputy Prime Minister and Minister of Finance, Chrystia Freeland, presented the government’s budget.

The budget:

  • Introduces a refundable investment tax credit for certain clean hydrogen equipment
  • Expands the refundable investment tax credit for clean technology equipment to include certain geothermal energy systems
  • Announces a public consultation on a refundable investment tax credit for certain clean electricity systems and equipment
  • Announces proposed labour requirements that would apply to the clean hydrogen, clean technology and clean electricity investment tax credits
  • Introduces a refundable investment tax credit for certain clean technology manufacturing and processing equipment
  • Expands the eligible activities and extends the phase out period for the reduced tax rates that apply to zero‑emission technology manufacturing and processing income
  • Provides design and implementation details for the 2% tax on the net value of share repurchases by public corporations that was announced in the 2022 Fall Economic Statement
  • Announces a consultation on specific proposals to strengthen the general anti-avoidance rule (GAAR)
  • Amends the alternative minimum tax (AMT) to better target the AMT to high-income individuals
  • Amends the rules introduced by Bill C-208 that facilitate certain intergenerational business transfers, to ensure that they apply only when a genuine intergenerational business transfer occurs
  • Introduces rules to define and facilitate the use of Employee Ownership Trusts to acquire and hold shares of a business

Full Budget: