Post by
1student on Apr 17, 2024 2:57am
Terrabonne, Quebec Property Purchase Gets A 10% Tax Credit
The Government of Canada budget released yesterday also provides for a 10% tax credit for the cost of buildings used for key parts of the electric-vehicle supply chain over the next 10 years and a 15% tax credit over the same period for eligible investments in new equipment or refurbishments for clean electricity.
This would mean that the would be constructed 8,000 tonnes per annum SiGTM anode additive material, SPCG "BAM" and graphene enhanced anode material manufacturing facility property purchase would be eligible for a 10% tax credit as well.
I expect this newly introduced 10% tax credit would now make it possible for Investissement Quebec, as an example, to upfront loan NanoXplore an amount of capital equal to 10% of the cost of any tax credit eligible purchased property.
In terms of applicable tax credits, I expect every little bit helps NanoXplore with the various costs relating to it's 5 year strategic business development investment plan.
I do, however, doubt that the delay in finally locking down that awaited for roughly $150 Million NanoXplore credit facility would have been due to NanoXplore representatives necessarily waiting for this particular 10% tax credit for eligible property purchases being officially made available following yesterday's budget release.
It's as previously suggested, the $150 Million NanoXplore credit facility needing to be secured would be contingent upon increased graphene manufacturing capacity offtake purchase agreements being secured and/or graphene enhanced SMC product offtake purchase agreements and/or SiGTM anode additive material, SPCG "BAM" and/or graphene enhanced anode material offtake purchase agreements first being locked down.
We note that during the previous quarterly conference call, company representatives suggested that the back half of the this calendar year may, again "may" bring forth potential and prerequisite materials offtake purchase agreements needed to allow for a GO Final Investment Decision or "GO FID" to be announced.
To reiterate, if there are no bonafide and bankable products offtake purchase agreements being locked down, along with the mandatory accompanying partners/customers capital investments or capital financing being provisioned for the proposed building and operation of that 16,000 tpa graphene manufacturing and various graphene enhanced BAM manufacturing facility of course, there would be no "GO FID".
No "GO FID" would mean there would be no need for a $150 Million NanoXplore credit facility being secured anytime soon.
As is historically typical of NanoXplore officers and directors, it's the bait and then make you wait, wait and wait some more (perhaps nearest to an entire year) before any tangible deliverable suggested could be attained.