The Trudeau government’s fall economic update held out funding programs to assist low-income Canadians, move workers to jobs in a net-zero economy, and to encourage businesses to adopt green energy systems and equipment.
As well, the fiscal update showed the deficit for 2022-23 is now expected to come in at $36.4 billion (a $16.4-billion improvement over Budget 2022’s projection). The federal government is projecting a return to surplus ($4.5 billion) in 2027-28.
The statement, released November 3 by Finance Minister Chrystia Freeland, puts more than $1 billion into programs for job and skills training. Some $250 million will target training and skills upgrading to prepare workers for jobs in a low-carbon economy.
Another $800 million will go to assisting young people to find jobs, including employment and skills supports program to assist those facing barriers to employment; summer job placements; and, a pilot program for work placements for First Nations youth.
Among the funding programs to encourage a green economy and the uptake of clean energy systems and equipment is an investment tax credit for clean technologies. The refundable tax credit proposed would be equal to 30% of the capital cost of investments in electricity generation and storage systems, low-carbon heat equipment and industrial zero-emission vehicles and related charging or refueling equipment such as hydrogen or electric heavy-duty equipment used in mining or construction.
The government’s news release noted that: companies that “adhere to certain labour conditions will be eligible for the full 30 per cent credit, while those that do not will only be eligible for a credit of 20 per cent.
The credit takes effect with the tabling of Budget 2023, phasing out as of 2032 and ending Jan. 1, 2035.