CVW CleanTech Inc V.CVW

Could Today's Budget be catalyst for CVW?

[James72]

Below is an except from KPMG's Budget Preview. My read is the the highlighted sections are potentially very good for CVW. Just because it is in their preview doesn't insure that they will make the final cut and be included in the Budget. But it does mean they have been floated publically and the odds of making it into the Budget are likely pretty high. CVW has previously indicated that the financial models for their project show a mid 40% IRR. The changes listed below would only raise rate. My quick estimate is likely by another 10-15%. Let's see what this afternoon brings.

have been The green transition

Last year, the federal budget announced a range of funding programs and tax measures to advance Canada’s transition to a clean economy and support businesses on their path to decarbonization. The Canadian government has committed to the country achieving carbon neutrality by 2050, which was reflected in the Fall Economic Statement and is expected to continue as a theme of this year’s budget announcements.

Draft legislative proposals to implement the Clean Hydrogen Investment Tax Credit (CHITC), designed to help support the costs of projects that produce clean hydrogen, and the Clean Technology Manufacturing Investment Tax Credit (CTMITC), an incentive to help with the capital cost of clean technology manufacturing equipment and the extraction, processing or recycling of critical minerals, were released for comment in December 2023. The budget could provide an opportunity for the government to announce changes to these proposals in response to any comments it may have received prior to the consultation period closure on February 5, 2024. Depending on the extent of any further changes, legislation to enact one or both of these measures could be included in an implementation bill introduced shortly after the budget.

Bill C-59, which was introduced in Parliament late last year, included legislation to implement a number of other previously proposed clean economy tax credits:

74%

74% Of Canadian SMBs acknowledge that taxes are an effective tool for driving the green economy*

• Carbon Capture, Utilization and Storage Investment Tax Credit (CCUSITC): This refundable tax credit applies to a suite of technologies that capture carbon dioxide (CO2) emissions—a key factor in climate change—to either store the CO2 or use it in industrial processes. Canadian businesses that invest capital in the development and operation of carbon capture would be able to offset some of these costs with refundable tax credits of up to 60 per cent.
• Clean Technology Investment Tax Credit (CTITC): A refundable tax credit for up to 30% of the capital costs incurred after March 27, 2023 on certain eligible clean technology equipment, including those used for electricity generation and storage, low-carbon heating, and certain zero-emission vehicles. Applicable also to Real Estate Investment Trusts (REITs), this incentive can help improve accessibility to energy-efficient housing.
• Critical Mineral Exploration Tax Credit (CMETC): This refundable tax credit is intended to incentivize investment in exploration for minerals, which are critical for developing clean technologies such as solar panels and wind turbines. In Bill C-59 new measures were announced to expand eligible materials to include lithium from brines.
   

An additional incentive to keep an eye out for in future but is not expected to be advanced in the upcoming budget, is the Clean Electricity Investment Tax Credit (CEITC). The government has previously stated that it intends to launch consultations this summer on draft legislation to implement the CEITC and is targeting the Fall 2024 for the introduction of legislation in Parliament.

 

 

[Arvid77]

So many incentives and subsidies available for a project like this now, that the potential return:risk ratio just gets better and better. I am thinking, and betting, that as someone makes the commitment in the next year.