The Canadian Hydrogen Association (CHA) Welcomes the Passing of the 2024 Federal Budget Implementation Act
TORONTO, ON, June 20, 2024 – The Canadian Hydrogen Association (CHA) welcomes the Royal Assent of the 2024 Federal Budget Implementation Act, a legislation that introduces essential investment incentives to ensure Canada’s commitment to reaching net-zero targets and remaining competitive in the global clean energy space.
The 2024 Federal Budget Implementation Act includes a “a refundable tax credit to qualifying businesses for investments in certain clean hydrogen projects.” This now officially enacts the Clean Hydrogen Investment Tax Credit (ITC), which was first announced in the 2022 Fall Economic Statement. The ITC is now accessible, providing crucial support to businesses that are pioneering clean hydrogen innovations and projects. The Act also includes incentives for investments in clean technology manufacturing, bolstering the broader clean energy framework in Canada.
“We are pleased with the passing of the 2024 Federal Budget Implementation Act, which represents a positive step forward for the clean hydrogen industry in Canada.” said Ivette Vera-Perez, President and CEO of the Canadian Hydrogen Association. The introduction of the Clean Hydrogen Investment Tax Credit will provide valuable financial support to advance the deployment of clean hydrogen projects. This progress reflects the collective efforts of the Canadian Hydrogen Association and our members. We will continue to collaborate with the Government of Canada to support the industry as a whole and promote all pathways to clean hydrogen. This incentive highlights Canada’s commitment to a sustainable energy future and reinforces our role in the global clean energy transition.”
The CHA’s tax advisory partner, Deloitte, has also released a statement and has pledged to continue monitoring the evolution of the legislation as the government continues its analysis of the consultations and the representations made by various groups with respect to the Clean Economy ITC legislation.
The introduction of the Clean Hydrogen ITC is poised to bring about considerable advancements in the deployment of hydrogen technologies. Key anticipated benefits include:
- Economic Stimulation: The Clean Hydrogen ITC is expected to drive significant economic growth and enhance the competitiveness of Canadian businesses in the global market. As of 2024, there are over 80 low-carbon hydrogen projects in various stages of development in Canada, representing an economic opportunity of more than $100 billion in potential investment.
- Job Creation: The implementation of this tax credit is expected to create numerous high-quality jobs across various sectors, including manufacturing, research and development, and project management, contributing to the overall prosperity of Canadian communities.
- Greenhouse Gas (GHG) Emissions Reduction: By promoting the adoption of clean hydrogen projects, the ITC will significantly reduce greenhouse gas emissions, supporting Canada’s efforts to meet its net-zero targets and combat climate change.
About the Canadian Hydrogen Association (CHA)
The Canadian Hydrogen Association (CHA) is a national, non-profit association that represents industry, academia, end-users and other stakeholders in Canada’s hydrogen sector. As the Voice of the Sector, the CHA’s mission is to strengthen Canadian leadership, raise awareness of the benefits of clean hydrogen and hydrogen technologies, and accelerate the adoption of its members’ products and services to help create a prosperous low-carbon world. The CHA supports nearly 200 members across Canada and provincial affiliates in British Columbia, Alberta and Ontario. You can also follow CHA on LinkedIn, X (@PoweringNow) or visit www.canadah2.ca to learn more information.
