Investment Tax Credits for Clean Hydrogen and Clean Technologies

Canada’s Building Trades Unions commends the Canadian Government for committing to implementing financial incentives for investments in clean technologies and hydrogen tied to good jobs to reach our net-zero goals. In order to remain competitive with the United States’ Inflation Reduction Act, it is necessary for Canada to respond strategically and strongly to ensure we maximize opportunity for Canadian industry and Canadian workers. The announcement made in the Fall Economic Statement was a step in the right direction and Budget 2023 provides us with the opportunity to further strengthen these tax credits to ensure they are tied to good labour conditions to maximize benefits for the greater economy. 

Increasing Credits

The investment tax credits need to be strengthened to remain competitive with the United States’ tax credits (which are increased by five times when prevailing wage and apprenticeship requirements are met) and to genuinely incentivize good labour conditions including strong wages and apprenticeship opportunities.  

Defining Prevailing Wage

As committed to in the Fall Economic Statement, eligibility of the investment tax credit is dependent on meeting prevailing wage requirements. If the Government is to forgo tax revenue in the form of investment tax credits, the definition of prevailing wage needs to be clearly defined to ensure the maximum benefits for Canadians.

Apprenticeship and Diversity

Investment Tax Credits must be tied to the creation of apprenticeship opportunities and focused on diversifying the skilled trades. Apprenticeships ensure the longevity of the industry by increasing entrants into the sector. 

The Canadian Government has an unmatched opportunity to define parameters for use of these tax credits that will not only set Canada on the course to net-zero but also utilize the transition to clean technology as a nation building exercise that puts Canadians first. 

These recommendations are intended to minimize negative impacts of the transition to net-zero on workers, communities, and our economy. See the full submission here.

Labour Mobility Tax Deduction for Tradespeople
Labour Mobility Tax Deduction for Tradespeople

After over two decades of advocacy, tax fairness is now a reality for tradespeople across Canada.

Reform Employment Insurance
Reform Employment Insurance

We actively advocate for changes to legislation and programs, including EI, to support the workforce.

Grants and Financial Support for Apprentices

Click here to view our document on provincial supports that are available for apprentices.

2023 Pre-Budget Submission

Canada’s Building Trades Unions have submitted recommendations for the 2023 federal budget, which you can read here.

Building Connections