Leading companies recognize that social,
environmental, economic and ethical factors directly affect their business
strategy and success. According to PricewaterhouseCoopers (PwC), as
sustainability becomes an integral part of the executive agenda, organizations
need to find the right balance between generating profits and reducing the
impact of operations on the environment.
Now for the first time in Canada, PwC has brought to the marketplace a
clear, concise list of the credits and incentives that exist federally and
provincially across Canada.
“Going green is not an impossible task,” says Lana Paton, a PwC Tax
Partner with the firm’s Sustainable Business Solutions (SBS) practice. “Many
companies don’t realize that there are many federal and provincial incentives
that could help them go green, and even make money-critical in today’s
economy. While going green is not yet compulsory in Canada, it’s only a matter
of time before it is and those who make the right moves now will be those who
benefit today and in the future.”
For example, an eligible private Canadian company carrying out qualifying
scientific research and experimental development activities in Ontario may
qualify for tax credits and funding under the Industrial Research Assistance
Program (IRAP). Assuming such a company incurs $500,000 of eligible
expenditures in Ontario and receives the maximum IRAP funding, that company
can receive government incentives of nearly $320,000 under the two programs –
that’s 64% of the total eligible costs.
Some of the more notable federal incentives among those identified by PwC
Scientific Research and Experimental Development (SR&ED) Investment Tax
Credits: Designed to encourage development of new or improved products
and processes in Canada. While they may not realize it, many companies in
most industries already do conduct SR&ED. Can equal 20% of eligible
expenditures (for Canadian-controlled private corporations the credits
are 35% on up to $3 million of annual expenditures and are wholly or
partially refundable). Unused credits can be carried back three years or
carried forward 20. Additional credits may also be available
ecoENERGY for Renewable Heat: Incentives for installing solar space and
water heaters. $80,000 for solar air projects and $400,000 for solar hot
water projects with a corporate maximum of $2 million.
ecoENERGY for Renewable Power: Incentives for the supply of clean
electricity from renewable sources (i.e. wind, bio-mass, ocean energy
etc.) $0.01 kilowatt per hour. Maximum $80 million per project,
$256 million per recipient.
ecoENERGY for Retrofit incentive: Grants for companies that retrofit
industrial or commercial buildings, equipment, systems or processes that
improve energy conservation and efficiency. Up to 25% of eligible project
costs. Maximum $50,000 per industrial facility, $250,000 per corporation.
Industrial Research Assistance Program: Funding and mentoring for
Canadian companies to encourage innovative products, processes and
technology. Up to 50% of eligible project costs. Maximum of $175,000.
SD Tech Fund: Two rounds of funding annually to support the late stage
development and pre-commercial demonstration of new technologies that
will address clean technology solutions. Up to 50% of eligible costs per