Bill C-262 proposes an amendment to the Income Tax Act to introduce a tax credit for corporations involved in the capture, utilization, or storage of greenhouse gases. The bill defines key terms such as "greenhouse gas" (specifically carbon monoxide and carbon dioxide), "qualifying corporation" (those primarily engaged in capturing, utilizing, or storing greenhouse gases), "storage project" (geological sites like deep saline aquifers or depleted oil reservoirs used for greenhouse gas storage), and "utilized" (various methods of fixing, converting, or using greenhouse gases commercially).
The tax credit is calculated by multiplying the quantity of greenhouse gas captured and utilized or stored (in tonnes) by the amount specified in Schedule 4 of the Greenhouse Gas Pollution Pricing Act for the relevant calendar year. The bill also addresses situations where one corporation captures the greenhouse gas and another utilizes or stores it, allowing the Minister to divide the tax credit between them under certain conditions.
This amendment aims to incentivize businesses to invest in technologies and projects that reduce greenhouse gas emissions through capture, utilization, and permanent storage. The changes apply to taxation years ending after 2020.
Taxation
This bill introduces a new tax credit for qualifying corporations involved in capturing, utilizing, or storing greenhouse gases. The tax credit is calculated based on the quantity of greenhouse gas captured and either utilized or stored permanently. This is intended to reduce the amount of taxes that these corporations would have to pay.
Climate
This bill promotes climate action by offering a tax credit to corporations that capture and utilize or store greenhouse gases like carbon monoxide and carbon dioxide. This encourages reducing these gasses from the environment.
Environmental Protection
The bill aims to protect the environment by incentivizing companies to capture, utilize, or store greenhouse gases. It supports projects like injecting greenhouse gasses into deep saline aquifers or depleted oil reservoirs for storage.
Energy
The bill mentions the use of depleted oil reservoirs for the purpose of enhanced oil recovery while storing greenhouse gases. This suggests a potential intersection with the energy sector by using captured greenhouse gasses in the oil production process.