Earth Day has us asking questions about cleantech tax credits

Plus: Canada risks falling behind in AI race.

Budget 2024 has passed but BetaKit is still exploring its implications. With the ongoing capital gains tax brouhaha, Josh Scott ran the numbers to explain how tech founders, funders, workers, and firms will be impacted by the changes. 

On the issue of tax changes, I’ve been digging through the new and not-so-new cleantech measures the Liberal government detailed in the budget. Net-new, there’s a proposed Electric Vehicle Supply Chain tax incentive, giving eligible companies a 10-percent credit if they invest in multiple different segments of the supply chain. That, along with more details on previously announced clean energy credits, seems to be Ottawa’s answer to the hundreds of billions US President Joe Biden earmarked nearly two years ago to supercharge his country’s clean energy manufacturing.

The credits, unveiled between Budget 2021 and Budget 2023, will be retroactive to their enforcement dates, with legislation expected to be introduced sometime between now and the next budget for all of them. “Passing the major economic investment tax credits into law will secure a cleaner, more prosperous future for Canadians today, and tomorrow,” the budget states.

Beyond the question of when they’ll actually get implemented, I have a bunch more for which I’m seeking answers. Will these credits meaningfully help Canadian tech companies scale? Or will they benefit international companies more, like with the $15-billion Honda EV investment we saw PM Justin Trudeau champion this week? Are they enough in comparison to the US’ whole-of-government approach? 

I’m looking for people to talk cleantech. My inbox is open: tell me who you want to hear from.

Thanks for reading on and ‘til next week, 

Bianca Bharti
Newsletter editor


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Funding, Acquisitions, and Layoffs


KW – Descartes Systems Group acquired Aerospace Software Developments
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The BetaKit Podcast


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“I think it would be a mistake if we make Canada even less competitive at such an incredibly important moment in time for us to embrace competition and productivity.”

Michael Katchen (Wealthsimple) and Daniel Eberhard (Koho) join BetaKit editor-in-chief Douglas Soltys for a wide-ranging conversation on Canada’s productivity, entrepreneurship, and competition crises. Financial innovation, open banking, Real-Time Rail, and capital gains taxes might also come up. Recorded live at INNOVATEwest.


B|K: The BetaKit Newsletter is powered by Osler

Osler releases multi-year study of 450+ Canadian VC and growth equity financings

Osler, Hoskin & Harcourt LLP has released its third annual study of 486 anonymized venture capital and growth equity financings from 2020–2023, valued at approximately US$8 billion, providing data and insights for founders, entrepreneurs, investors and advisors contemplating transactions this year and beyond.

Join members of Osler’s Emerging and High Growth Companies Group May 1, 2024, at 12 p.m. ET, for a special one-hour virtual event when they provide insights and analysis from this important report.

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Feature image courtesy Unsplash. Photo by Igor Kyryliuk.

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