CIAC pleased to see measures in the Fall Economic Statement to enhance Canada’s investment competitiveness 

December 17, 2024

The Chemistry Industry Association of Canada (CIAC) is pleased to see several measures in yesterday’s 2024 Fall Economic Statement that have long been sought by CIAC to enhance Canada’s investment competitiveness in the sector.  

“The announcements made yesterday address long-standing competitiveness issues,” said Bob Masterson, President and CEO of CIAC. 

“CIAC has advocated for reform of these programs in its 2021, 2022, 2023 and 2024 Pre-Budget Submissions to the Standing Committee on Finance and in specific consultations earlier this year. It is important to note that each of these measures only comes to fruition with investment capital which is exactly what Canada needs. These are all steps in the right direction enhancing Canada’s investment competitiveness, and additionally, could help mitigate potential investment flight should proposed tariffs under a new U.S. administration become reality.” 

Specifically, CIAC is pleased with the following measures:  

  • Recapitalizing and reforming the Scientific Research and Experimental Development (SR&ED) program with an additional $1.9 billion over 6 years and significant amendments; 
  • Extending the Accelerated Investment Incentive through 2033, as well as immediate expensing for manufacturing or processing machinery and equipment, clean energy generation and energy conservation equipment and zero emission vehicles; 
  • Extending the Clean Hydrogen ITC credit to Methane Pyrolysis. By making methane pyrolysis eligible for the Clean Hydrogen investment tax credit, which covers between 15 per cent and 40 per cent of the cost of purchasing and installing eligible equipment used in clean hydrogen production, Canada could become a leader in this technology. 

Many of these measures, while positive, require enabling legislation to take effect. CIAC will continue to work with the federal government to ensure that these measures take effect to enhance the competitiveness of Canada’s chemistry and plastics sector.