Environment and Climate Change Canada (ECCC) announced the opening of the Project Stream of the Climate Action Incentive Fund (CAIF) in which small-and-medium-sized enterprises in Ontario, Saskatchewan, Manitoba, and New Brunswick – the four provinces where the federal price on pollution applies – could be eligible to receive up to 25 percent of their costs for energy saving projects.
Funding will range between $20,000 and $250,000. Program details can be found on ECCC’s website.
Eligible projects include building retrofits, improved industrial processes, cleaner transportation, retrofits, fuel switching, and other projects. Funds will be made available on a first-come, first-serve basis, with the application period being open until funding is exhausted or for a maximum of 90 days. Under the Climate Action Incentive Fund, small-and-medium-sized businesses are defined as businesses with fewer than 500 employees.
Funds available through the CAIF in 2019-2020 will come to a total of $106.7 million, based on the percentage of carbon revenues collected within each province:
- $72.4 million in Ontario
- $21.3 million in Saskatchewan
- $9.3 million in Manitoba
- $3.7 million in New Brunswick
Applicants can consult the applicant guide to prepare their proposal and submit it through the online application tool. Applicants will be notified of the decision after approximately 25 business days upon receipt of their application.
An annual pre-budget request by CTA, the Government of Canada implemented changes to accelerated capital costs that allow businesses to immediately write-off the full cost specified clean-energy equipment. Investments eligible for Climate Action Incentive Fund may also be eligible for the accelerated capital cost allowance.
More information regarding the rebate stream of the program, which will include incentives for aerodynamic devices and GHG reducing technologies, will be released in the coming months.