03 Mar Canada’s PM extends zero-emissions tax deductions to mining sector: PDAC 2020
Canada’s Prime Minister Justin Trudeau announced yesterday that the government will extend business tax deductions for zero-emission vehicles and equipment to cover mining operations, in a declaration of his belief that the sector has a major role to play in the fight against climate change.
The announcement came in a speech at the annual Prospectors & Developers Association of Canada (PDAC) convention in Toronto. Trudeau told the assembled global mining industry that “a thriving mining industry and a thriving natural resource sector don’t have to be impediments to fighting climate change.”
“To produce high-density batteries and wind turbines, you need copper, nickel and cobalt,” he added. “To build a solar panel, you need 19 metals and minerals. Canada is home to 14 of them.”
Under the new proposals, vehicles would need to be available for use before 2024 to be eligible for an income tax deduction of 100%. The deduction allowance would decrease to 75% for 2024 and 2025 and 55% for 2026 and 2027.
Trudeau pledged to pursue net-zero emissions for Canada during his election campaign last year, promising to draft a plan to achieve it and to introduce legislation that would set out a series of interim targets.