Friday, March 24, 2023

dynaCERT and Galaxy Power Applaud the Canadian Clean Technology Tax Incentives of Budget 2022

dynaCERT Inc. and Galaxy Power Inc. (“Galaxy Power”) applaud the recently announced changes proposed in the Canadian Government’s Budget of April 7, 2022 (“Budget 2022”) regarding the creation of a 30% new Tax Credit for Investments in Clean Technology focused on net-zero technologies, battery storage and clean hydrogen, the new 30% Critical Mineral Exploration Tax Credit and certain other provisions relating to expanding clean technology tax incentives associated with flow through shares, including the expansion of Class 43.1 and 43.2 Canadian Renewal and Conservation Expense (“CRCE”) tax definitions, and certain new deductions (collectively the “Clean Tech Incentives”).

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Successful Consultative Meetings:

  • dynaCERT and Galaxy Power and their principals have been meeting for more than two (2) years with cabinet ministers, elected Members of Parliament, as well as senior officials within the government to advance, and assist with, the implementation of Clean
  • Technology tax deferrals and tax credits. dynaCERT and Galaxy Power have had face-to-face meetings, conversations and correspondence with political parties on all sides to help bring Clean Technology tax incentives to fruition.

Foreseeable Future Economic Benefit:

Budget 2022, and its corresponding proposals for Clean Tech Incentives, were endorsed by The Right Honourable Justin Trudeau, Canada’s Prime Minister and leader of the Liberal Party of Canada, The Honourable Chrystia Freeland, Canada’s Deputy Prime Minister and Minister of Finance, The Honourable Steven Guilbeault, Environment and Climate Change Minister, and The Honourable Omar Alghabra, Minister of Transport, among many other dignitaries.

Accordingly, Galaxy Power and dynaCERT welcomes the Clean Tech Incentives as lasting strong evidence of an obvious, clear, irrefutable and unequivocal “foreseeable future economic benefit” for all Canadians and to such Canadian participants such as dynaCERT and Galaxy Power.

Support for Continued Government Consultation:

dynaCERT and Galaxy Power continue to support the government’s openness in a consultative process on the design details of the tax matters in Clean Technology and see consultative measures as a rational and important step to continue to expand Clean Technology Flow Through Shares.

Clean Technology Incentives Reduce GHG’s:

The new Clean Tech Incentives can enhance the financial potential of fast-growing Clean Technology companies that foster Clean Technology in Canada to reduce global Greenhouse Gas Emissions (“GHG’s”).

Enhancing Growth of Canadian Companies:

Galaxy Power and dynaCERT believe that the Clean Tech Incentives in Budget 2022, along with the Budget 2021 proposed expanded Clean Technology Flow Through Share policy, when successfully implemented, can greatly enhance the much-needed financing capabilities of Clean Technology companies in Canada while at the same time contributing to the Canadian Government’s objectives of reducing Canadian GHG’s and enhancing rapid Canadian economic growth from coast to coast.

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