News release: Budget 2024 advances key initiatives – but at a hefty price

Ottawa, Ontario, April 16, 2024 – Budget 2024, tabled today by the federal government, outlines several key initiatives that will strengthen the Canadian economy, including housing, decarbonization initiatives and small business supports. However, with a spending increase of nearly $53 billion over the next five years, it does so at the expense of fiscal sustainability and prudence. We are particularly concerned Budget 2024 does not leverage business as a driver of economic growth, at a time when productivity and economic stability is critical, but instead seeks to raises the capital gains taxes for Canadian businesses, risking investment in critical infrastructure and decarbonization.

“Several key measures announced in Budget 2024 are critical to address issues such as housing supply and affordability, the need to boost productivity, streamline the permitting process and advance economic reconciliation,” says Deborah Yedlin, CEO of the Calgary Chamber of Commerce. “However, the significant increase in spending is cause for concern, as we see the debt servicing burden continue to grow significantly.”

The Calgary Chamber of Commerce is encouraged to see:

• Housing affordability investments, including increasing funding to the Housing Accelerator Fund by $400 million over four years, making public lands available to affordable housing developments and investing $50 million over two years in new technologies such as modular construction, the use of 3D printing and panelized construction to improve the efficiency of building homes.  
• Decarbonization initiatives progressing through Investment Tax Credits, and the expansion of the Clean Electricity Tax Credit. 
• Initiatives to close Canada’s productivity gap by helping businesses invest in technology development and adoption, including $600 million for research and innovation through SR&ED, and an enhanced tax write-off for investments in productivity-enhancing assets.  
• Streamlined permitting timelines and transparency for major projects, including those under the Impact Assessment Act, by establishing a Federal Permitting Coordinator within the Privy Council Office’s Clean Growth Office. 
• Improved Foreign Credential Recognition and work-integrated learning, particularly for skilled trades, home builders and younger workers. 
• Economic reconciliation advanced through the Indigenous Loan Guarantee Program, making $5 billion in sector-agnostic loan guarantees available to Indigenous communities, as well as funding to support capacity-building and the Aboriginal Entrepreneurship Program.  
• The Canada Carbon Rebate, a refundable tax credit on fuel charges for small businesses, providing $2.5 billion in affordability relief to Canadian SMEs.  

Several measures announced in the Budget are directionally positive, but require further clarity and consultation, including:

• Carbon Contracts for Difference and investment tax credit eligibility requirements and agreements with provincial partners.  
• Planned improvements to carbon credit markets between provinces and territories, including for nuclear projects.   
• Additional tax credits, including details on Electric Vehicle Supply Chain tax credit. 

We look forward to continuing to work with the federal government to gain greater insights and clarity into the decisions outlined in the process and encourage continued consultation with our business community.

ABOUT THE CALGARY CHAMBER OF COMMERCE

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.

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For media inquiries related to the Calgary Chamber, please contact us at media@calgarychamber.com.