The Government of Canada wants Canadians to invest in a healthier environment, a more stable energy future and a more competitive economy. In order to achieve these goals, two specific taxation measures are available to encourage investments in energy efficiency and renewable energy projects:

• Class 43.1 in Schedule II of the Income Tax Act allows taxpayers an accelerated write-off of certain equipment that is designed to produce energy in a more efficient way or to produce energy from alternative renewable sources.

• Canadian Renewable and Conservation Expenses (CRCE) is a category of fully deductible expenditures associated with the start-up of renewable energy and energy conservation projects for which at least 50 percent of the capital costs of the property would be described in Class 43.1.