CIAC welcomes progress on long-awaited investment tax credits in 2024 Federal Budget 

April 17, 2024

The Chemistry Industry Association of Canada (CIAC) welcomed progress on long-awaited investment tax credits (ITCs) in 2024 Federal Budget on April 16. 

“There are five pathways to transition the global chemistry industry to low carbon – carbon capture utilization and storage, hydrogen, electrification, feedstock switching, and a circular economy for downstream products. Canada is one of two regions globally uniquely positioned to leverage these pathways,” said Bob Masterson, President and CEO of CIAC.  

“We need these ITCs passed into law to solidify Canada’s competitiveness and create sustainable, well-paying jobs. The suite of ITCs proposed by the federal government aligns very well with the new investment required in our sector to achieve industry and government’s low carbon ambition, and advancing the more than $30 billion in chemistry industry investment proposals previously announced.” 

The investment tax credits for EV supply chains, clean manufacturing and clean electricity included in Budget 2024 were all welcomed by the industry. CIAC is also pleased to see funding allocated to Natural Resources Canada, Finance Canada and the Canada Revenue Agency to deliver the ITCs once they are passed into law.  

CIAC is concerned with the more limited allocation ($191 million over five years) to Health Canada and Environment and Climate Change Canada to implement Canada’s chemical management plan (CMP).  

“Canada’s CMP is a global success story. The work package currently proposed is extensive and CIAC is calling on the government to ensure the program is adequately funded to meet its objectives,” said Masterson.  

All CIAC members are compelled to innovate for safer and greener products and processes, and work to continuously improve their environmental, health and safety performance through CIAC’s UN-recognized chemistry ESG initiative, Responsible Care®. Founded in Canada in 1985, the chemistry ESG is now practiced in 73 countries and by 96 of the 100 largest chemical producers in the world.