The Forecast, Issue 4

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Tax Implications of Climate Change

High fuel costs and increased public awareness of climate change are pushing all levels of government to create new taxes and incentives for green energy options. To date, both the federal and provincial governments have used the income tax system to encourage investment and development in energy efficiency and greenhouse gas emission reduction programs.

In this newsletter, we take a closer look at two of these key climate change-related tax incentive programs — Canadian Renewable and Conservation Expenses (CRCE) and provincial carbon taxes — and examine how they work and the benefits they provide to consumers and businesses.