Tax and climate change intersected in 6398316 Canada Inc. v R, 2021 TCC 17. The Tax Court denied scientific research and experimental development (SRED) tax credits to a corporation that built a passive house. The Court found that the corporation was experimenting with how to build such a house for less money. The Court held that building something more cost-effectively is not the kind of technical change for which SRED credits are available.
The feds might want to look at this decision and decide whether changes to the SRED program are needed because deploying climate solutions as cheaply as possible will be critical in the next 30 years.
