To hit environment goals, feds should create ‘super’ tax credit, report says
OTTAWA — A government-struck expert panel is calling for new “super-deduction” tax credits as a carrot for Canadians to park their retirement savings in climate-conscious investments.
The report this morning to Finance Minister Bill Morneau says the government should let people deduct more than 100 per cent of retirement contributions they put into investments such as bonds that help reduce greenhouse-gas emissions.
The panel expects the deduction would be an incentive for the many Canadians who don’t max out their retirement-savings allowances and tax-free savings account contributions, and those who do should have extra space for green investments.
The ideas are in a broader vision of regulatory changes the panel prescribes for combining Canada’s environmental goals and economic growth.
Businesses should be required to disclose more about the financial risks climate changes pose to their bottom lines, the report says, and pension plans to show how climate-related issues are considered in their investments.
But the panel says the government must set a plan that extends to the middle of the century, outlining investments that need to be made to hit emission goals and the cost of a carbon tax for years to come so businesses and investors have predictability.
The Canadian Press