Businesses Prioritizing Sustainability with Cleantech Tax Credits
June 5th is World Environment Day and more than just a date on the calendar; it’s a call to take decisive steps toward sustainability. The responsibility to protect our planet does not lie solely with policymakers or environmental activists. Businesses are the backbone of our economy and have a pivotal role to play in this global effort. With the planet’s health hanging in the balance, it’s imperative that companies commit to greener practices and lead by example.
The Federal Push for Green Energy Investments
An encouraging trend is emerging in the business landscape: nearly 68.4% of Canadian businesses now have at least 1 green initiative in place. This movement is in sync with federal priorities, as the Canadian government continues to emphasize green energy as a cornerstone of its policy agenda. Recent data shows that a majority of Canadian businesses are seeking enhanced support and clear incentives to accelerate their transition to a sustainable future.
A recent KPMG survey reveals that nine out of ten Canadian business leaders urge the federal government to expedite the availability of green tax incentives and bolster support for climate financing. This urgency underscores the critical need for businesses to access financial aid to meet their environmental commitments and harness the economic opportunities of a green economy.
The Study: A Closer Look at Business Leaders’ Sentiments
The survey of 534 small- and medium-sized businesses (SMBs) highlights a strong demand for governmental support:
- 90% of business leaders advocate for fast-tracking all pending clean economy tax credits;
- 83% require more assistance to decarbonize their operations;
- 83% believe Canada must do more to compete with the U.S. in terms of climate policy funding and incentives; and
- 80% support federal incentives to attract foreign investments in clean technologies.
Financing the Transition to Net-Zero: Cleantech Tax Credits
According to the survey, nearly half of the business leaders are primarily relying on federal and provincial funding to finance their emissions reduction strategies. The federal government has introduced five major investment tax credits (ITCs) to alleviate the costs associated with climate initiatives. These ITCs cover investments in clean technology, clean hydrogen production, carbon capture, utilization, and storage (CCUS), clean technology manufacturing, and clean electricity.
The survey findings reveal a strong intention among businesses to utilize clean energy ITCs:
- 74% plan to leverage these tax credits.
- 36% are relying on ITCs to finance their decarbonization efforts.
- 38% seek more clarity regarding their eligibility for these credits.
- Only 7% have no plans to use the tax credits, while 19% are unsure about their eligibility.
Calling for More Federal Action
Challenges and Opportunities
Without swift and clear implementation of cleantech funding, Canadian businesses risk lagging behind their global counterparts. While some businesses are leading the decarbonization race, many SMBs face significant barriers, including upfront capital requirements and complexities in qualifying for incentives.
A Balanced Approach to Fiscal Policy
While businesses call for greater support for climate investments, they also stress the need for fiscal responsibility. Most leaders believe it is crucial for the federal government to maintain a sustainable fiscal path, reduce the deficit, and promote policies that foster business growth and innovation.
Access Cleantech Tax Credits & Funding for a Sustainable Future
Implementing environmentally friendly projects can be costly, but with the Canadian government prioritizing numerous cleantech funding programs, businesses have unprecedented opportunities to make a difference. World Environment Day serves as a powerful reminder that the time to act is now. By leveraging available tax credits and incentives, businesses can reduce their environmental impact, drive innovation, and position themselves as leaders in the green economy.
As Canada’s leading government grant writing service, we are here to help you navigate these opportunities. Explore our Cleantech Funding Directory today and discover how you can secure funding for your green initiatives.
The Canadian funding landscape is dynamic, with programs frequently changing and new opportunities arising. To secure cleantech funding, your business must plan and apply strategically. Download our free guide, When to Apply for Funding, to ensure your business applies at the optimal time and maximizes its chances of success.
