Rate Reduction for Zero-Emission Technology Manufacturers

Published: May 20, 2021
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Abstract

The corporate income tax (CIT) rate on eligible zero-emission technology manufacturing and processing activities will be reduced in half. This will reduce the CIT rate on small businesses from 9 to 4.5 per cent and the general CIT rate from 15 to 7.5 per cent. The rate reduction will apply to taxation years that begin after 2021 and before 2031 (gradually phasing out between 2029 and 2031). Eligible activities will include:

  • manufacturing of solar, wind or water energy conversion equipment;
  • manufacturing of geothermal energy equipment;
  • manufacturing of equipment for a ground source heat pump system;
  • manufacturing of electrical energy storage equipment used for storage of renewable energy;
  • manufacturing of zero-emission vehicles;
  • manufacturing of batteries and fuel cells for zero-emission vehicles;
  • manufacturing of electric vehicle charging systems and hydrogen refuelling stations for vehicles;
  • manufacturing of equipment used for the production of hydrogen by electrolysis of water;
  • production of hydrogen by electrolysis of water; and
  • production of solid, liquid or gaseous fuel from either carbon dioxide or specified waste material.