Policy Updates

Canada Introduces New Tax Incentives for Green Technology

The Canadian government has announced new tax incentives aimed at promoting investment in green technology and sustainable practices.

By NomadicTax Research Team • 5 min read • October 23, 2025

In a bid to combat climate change and stimulate economic growth, the Canadian government has introduced a series of tax incentives for businesses investing in green technology. These incentives include a 30% investment tax credit for qualifying expenditures on renewable energy projects and enhanced deductions for research and development in sustainable practices. This policy is expected to significantly boost the green tech sector and align with Canada's commitment to reducing greenhouse gas emissions by 2030. Businesses are encouraged to explore these new opportunities to not only benefit from tax savings but also contribute to a more sustainable future.