Stay Ahead With Sussex: Latest Federal Updates & Analysis
This afternoon, Deputy Prime Minister Freeland tabled a Notice of Ways and Means in the House of Commons to introduce the Fall Economic Statement Implementation Act, 2023. The tabling of the notice means that the legislation will begin its progress through both the House of Commons and the Senate. The proposed omnibus bill includes legislation to enact measures from both the Fall Economic Statement introduced on November 21, and the 2023 Federal Budget that was introduced back in March. Below is a summary of legislative measures featured in the proposed bill.
01. Government Introduces Legislation Enabling the Clean Technology and CCUS Investment Tax Credits
Clean Technology and CCUS Investment Tax Credits, and Labour Requirements
The Bill includes legislative changes to the Income Tax Act to enact the Clean Technology Investment Tax Credit, the Carbon Capture Utilization & Storage Investment Tax Credit, and their corresponding labour requirements. In the coming days, Sussex will review the legislation and explanatory notes and provide support to clients on clarifying questions.
The effective date for the labour requirements is the date that a Notice of Ways and Means Motion for the enabling legislation is first tabled, which is today.
Housing-Related
On Housing, the legislation will make two substantive changes:
- Remove the GST on new rental home construction, and
- Officially incorporate the federal functions on housing with infrastructure, creating the new Department of Housing, Infrastructure and Communities.
Other measures
Other measures proposed in the legislation include:
- Amend the Competition Act and the Competition Tribunal Act to alter the powers of the Commissioner of Competition, give consumers the so-called “right-to-repair”, amend the review process for proposed mergers, and the expand the reach of the Competition Tribunal,
- Remove the GST and HST on psychotherapy and counselling therapy services,
- Create a 15-week shareable EI adoption benefit,
- Develop a tobacco cost recovery framework,
- Double the rural top-up on the pollution price rebate,
- Establish a stand-alone Canada Water Agency to oversee freshwater management in Canada,
- Allow for the implementation of a Digital Services Tax, and
- Excessive Interest and Financing Expenses Limitation.
Noticeably absent from the legislation is the proposed promises to tackle short-term lending services such as Airbnb, and measures to address so called “junk fees”, including non-sufficient fund fees charged by banks and investigating international mobile roaming rates charged by telecom companies.
Legislative Process - What’s Next?
The proposed bill is likely to be one of the government’s top legislative priorities. It is expected that the bill will pass, given the Confidence and Supply Agreement that is in place between the governing Liberals and the New Democratic Party. The timing of passage of the legislation is uncertain, though the government is expected to take measures to expedite its progress in both the House of Commons and the Senate given that the House of Commons is scheduled to break for the holidays on December 15th.
It is likely that the legislation will carry over into the new year, when parliament resumes in late January, and thereon pass into law by mid-to-late February at the earliest.
02. Canada Infrastructure Bank Launches New Indigenous Equity Initiative
Today, the CIB unveiled details of its Indigenous Equity Initiative, designed to support First Nation, Métis and Inuit communities in purchasing equity ownership stakes in infrastructure projects within their traditional territories that the CIB is also investing in.
Equity loans to Indigenous communities is part of the CIB’s commitment to invest at least $1 billion in Indigenous infrastructure.
The Indigenous Equity Initiative will:
- Accelerate transformative infrastructure projects across Canada which are in the public interest;
- Fill a market gap by providing access to capital currently unavailable for most Indigenous communities.
- Be another step toward to the federal objective of reconciliation and economic inclusion of Indigenous communities and peoples.
- Indigenous equity participation across CIB’s five priority sectors is expected to involve projects such as clean electricity transmission, battery storage, electricity generation and infrastructure to support critical mineral development.
Equity loans will range between $5 and $100 million, offering up to 90% of Indigenous equity interest. Furthermore, repayment periods will be targeted at 15 years at minimum Government of Canada interest rates.
