QUESTION PERIOD — Agriculture and Agri-Food
Clean Technology Investment Tax Credit
September 28, 2023
My question today is for the Government Representative in the Senate.
Senator Gold, I continue to be concerned about many ongoing issues that continue to create undue hardship in the agricultural sector. Recently, I met with Green Energy Trading Corporation to learn more about their attempts to positively impact sustainability efforts through the conversion of on-farm organic waste to renewable natural gas. That occurs using biodigesters, which are proven to be effective in the reduction of greenhouse gas emissions and the reduction of reliance on commercial fertilizers. Moreover, digesters create additional revenue, improve manure management and increase overall soil health.
Unfortunately, biodigesters are very costly, and, as we’ve heard in the Agriculture and Forestry Committee meetings, purchasing farm equipment is a multi-year investment. New sustainable innovations are not always feasible options, especially for small-scale farm operations, and the issue is that dairy farmers can’t secure financial loans to install biodigesters without using their farmland as equity. This creates yet another barrier to participate in sustainable agriculture programs and diversify their operations. Yet credits are not being extended to those who are actively trying to work on alternative solutions to help Canada meet our climate change goals.
Senator Gold, my question to you is this: Instead of taxing this important industry, will your government extend the clean technology investment tax credit to Canadian farmers who are actively trying to work on viable alternatives, such as biodigesters, to help Canada meet our climate change targets? Thank you.
Thank you for your question and your expressed interest in what are, in fact, the five clean investment tax credits in Budget 2023, all aiming to support green innovation in Canada. For the moment, the new clean technology tax credits are focused on clean energy, manufacturing, hydrogen and carbon capture.
In addition, Budget 2023 expanded the Clean Technology Investment Tax Credit — originally launched in 2022 — which was the subject of the government’s wide-ranging public consultations from August to earlier this month. More generally, I’ve been advised that the government is committed to tripling the funding available for clean technology on farms — including for renewable energy, precision agriculture and energy efficiency. I will certainly bring the suggestion on biodigesters to the attention of the appropriate minister.