OTTAWA, Ont. – Funds from the federal carbon tax are now available to cover up to 25% of the cost of selected energy-saving projects in Ontario, Saskatchewan, Manitoba, and New Brunswick.
The news comes as Environment and Climate Change Canada opens the Climate Action Incentive Fund’s (CAIF) project stream to businesses with fewer than 500 employees.
Between $20,000 and $250,000 is available for eligible projects including clean transportation, switching fuels, and building retrofits, among other projects. But the funds are available on a first-come, first-served basis for a maximum of 90 days.
A total of $106.7 million will be available during 2019-20. Ontario will receive most of it, accounting for $72.4 million.
The federal government imposed carbon taxes on the four provinces on April 1, when the jurisdictions failed to include carbon pricing plans of their own. Ontario’s highest court recently ruled that the carbon pricing system was constitutionally sound, dealing a blow to an ongoing challenge by the province’s Progressive Conservative government.
Federal Climate Action Incentive Fund details can be found here.
Investments through the Climate Action Incentive Fund may also be eligible for the accelerated capital cost allowance that allows businesses to immediately write off the full price of specified clean-energy equipment, the Canadian Trucking Alliance says.
Incentives for aerodynamic devices and other technologies to reduce greenhouse gases are expected in coming months.