Join the campaign
Send this letter to your elected officials to show your support for Canada’s skilled trades workforce.
Dear Chrystia Freeland, Deputy Prime Minister,
cc: Finance Canada Consultations
As a tradesperson, I have had concerns about the Canadian Government’s plans to transition the economy to a more sustainable one, worried that my job and the jobs of my fellow tradespeople could be at risk. But, I’m pleased that the Government is committed to supporting industry and good paying jobs like mine as this transition ramps up.
The Investment Tax Credits for various green technologies included in the 2022 Fall Economic Statement and 2023 Budget support not only employers/industry, but also workers like me.
To receive the Investment Tax Credits, employers will need to provide good labour conditions for workers – including adhering to the new definition of prevailing wage and apprenticeship requirements.
Budget 2023 includes one of the strongest definitions for prevailing wage Canada has ever had – a huge win for skilled tradespeople across the country. The definition would be based on union compensation including benefits and pension contributions determined through multiemployer collective bargaining. This definition supports all skilled trades workers – unionized or not – and ensures we will receive good compensation in return for the Canadian taxpayers’ financial support to employers.
To help workers like me and industry in transitioning to net zero, the Government should quickly follow through on implementing the Investment Tax Credits, the strong definition of Prevailing Wage, and the apprenticeship requirements which will help grow the industry.
Thank you,
Canada’s Building Trades Unions commends the Federal Government for the investment tax credits announced in the 2022 Fall Economic Statement and the 2023 Budget to support the transition to net zero.
However, with the passing of the Inflation Reduction Act in the United States, it has never been more important to pass the investment tax credits for green technologies to create jobs, support workers, and secure Canada’s place as a leader in clean technology.
A Strong Definition for Prevailing Wage
Budget 2023 included one of the strongest definitions for prevailing wage Canada has ever had – a huge win for skilled tradespeople across the country. To receive the Investment Tax Credits, employers will need to provide good labour conditions for workers – including adhering to the new definition of prevailing wage based on union compensation and apprenticeship requirements.
Apprenticeship
As per Budget 2023, at least ten per cent of the tradesperson hours worked on applicable projects must be performed by registered apprentices in the Red Seal trades.
This is an opportunity to introduce a new generation of Canadians to the Building Trades with its strong, middle-class wages and help grow our workforce to meet the demands of tomorrow.
Investment Tax Credits
Clean Technology
Will provide support to Canadian businesses in adopting clean technology such as geothermal energy systems and small modular reactors.
- 30% credit when labour requirements are met; 20% without
Clean Hydrogen
Levels of support will vary between 15 and 40% of eligible project costs, with the projects that produce the cleanest hydrogen receiving the highest levels of support.
- 40% maximum credit when labour requirements are met; 30% maximum without
Clean Electricity
Supports a broad base of clean electricity technologies and proponents to expand the capacity of Canada’s clean electricity grid.
- 15% credit when labour requirements are met; 5% without
Carbon Capture, Utilization, and Storage
CCUS is a suite of technologies that captures carbon dioxide (CO2 ) emissions to either store the CO2 or to use in other industrial processes, such as permanent mineralization in concrete;
- Between after 2021 and before 2031
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- 60% tax credit for carbon captured directly from ambient air when labour requirements are met, 50% without
- 50% tax credit for carbon captured from means other than directly from ambient air when labour requirements are met, 50% without
- 37.5% tax credit for qualified carbon transportation or storage expenditures when labour requirements are met, 27.5% without
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- After 2030 and before 2041
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- 30% tax credit for carbon captured directly from ambient air when labour requirements are met, 20% without
- 25% tax credit for carbon captured from means other than directly from ambient air when labour requirements are met, 15% without
- 18.75% tax credit for qualified carbon transportation or storage expenditures when labour requirements are met, 8.75% without
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