The leader of Canada’s Liberal party has announced new green tax incentives and rebates that will affect the forestry sector. $400 million will be allocated over four years for Emissions Reduction Credits. The credits will be delivered as refundable tax credits, meaning that farmers and forestry companies will get credits for emissions reduction whatever their income. Liberal party leader Stéphane Dion aims to demonstrate commitment to the needs of rural Canadians and the forestry sector.
Two supporters of the initiatives are Liberal Forestry Caucus Chair Roger Valley and Federal Economic Development Initiative for Northern Ontario Critic Ken Boshcoff.
Mr. Valley said: “When Mr. Dion first announced the Liberal green shift plan, he said our party would be open and responsive to the concerns of Canadians. Over the course of the summer, we heard from the forestry industry and we have responded appropriately with a package of added measures that will help specific industries, including forestry, reduce their reliance on fossil fuels and invest in alternatives.
“In advance of a cap and trade system, the Emissions Reduction Credits will encourage and reward industries such as forestry that are achieving verified reductions in non-energy-related greenhouse gas emissions.”
Mr. Boshcoff also spoke out in support of the announcement, describing the incentives and rebates as reflections of the Liberal party’s commitment to act on the desires of the Canadian people, many of whom are involved in the forestry industry: “Our plan for the economy and the environment sits in sharp contrast to the Harper Conservatives, who have no plan at all,” he said. Boshcoff added that this announcement represents the first of several commitments in the upcoming federal election campaign to help Canadians who live in Northern and rural communities.
Also included in the Liberal green shift plan is a $1.7 billion accelerated capital cost allowance rate on investments in green technologies. The Liberal party also intends to make the Science, Research and Experimental Development (SR&ED) Tax credit refundable. Thus it hopes to ensure that all companies, not only those who are earning a profit in the short-term, are rewarded for innovation.
Rural Canadians will also benefit from significant income tax reductions and other tax benefits included in the Liberal green shift plan, such as a $150 annual Green Rural Credit for every rural Canadian, regardless of whether they pay taxes.
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