A re-elected Liberal government would slash corporate taxes in half for companies that develop and manufacture zero-emissions technologies.
The party announced on Tuesday that it would lower corporate taxes on qualifying businesses over the next three years.
Under the proposal, the corporate tax rate for qualifying small clean-tech businesses would be cut from 9% to 4.5%, and large clean-tech businesses would see their taxes cut from 15% to 7.5%.
According to a backgrounder provided by the party, qualifying businesses could include renewable energy manufacturers, producers of renewable fuels, manufacturers of zero-emissions vehicles and carbon sequestration companies, among others.
The Liberals said they would determine the eligibility of companies through a “science-based process” in collaboration with experts such as the Standards Council of Canada, the National Research Council and Sustainable Technology Development Canada.
The party estimated the plan would cost approximately $15 million in 2020-2021 and rise to approximately $67 million by 2023-2024.
In addition to cutting taxes for clean-tech businesses, the Liberals committed to strengthening the federal government’s existing green procurement policies to give these companies “a reliable customer that they can work with.”
The party also said it would require that all federal buildings be powered by green electricity by 2022 — three years sooner than its previous goal of 2025.
The proposals are part of the Liberals’ promise to get Canada to net-zero emissions by the year 2050.