The Department of Finance in Canada recently published draft legislative proposals concerning the clean technology investment tax credit (ITC) and the clean hydrogen ITC to stimulate investments in clean energy initiatives. The clean technology ITC rules, part of the Fall Economic Statement Implementation Act, 2023, are set to include additional equipment related to systems that generate electricity or heat from waste biomass. Technical amendments are proposed to offer further clarity and expansion of the clean hydrogen ITC introduced under the Budget Implementation Act, 2024. These updates reflect the government's efforts to incentivize capital investment in clean energy properties and advance sustainable practices. The clean technology ITC encourages investment in clean energy properties in Canada and is applicable to qualifying taxpayers making eligible investments between 2023 and 2035. The proposed amendments include defining preliminary work activities and implementing restrictions on certain expenditures to compute the clean technology ITC. Also, adjustments are suggested to prevent double claims for incentives and ensure that the ITC is not available for properties claiming other clean economy tax credits. The legislative proposals from the 2023 Fall Economic Statement will extend the clean technology ITC to include equipment facilitating electricity or heat generation from waste biomass. Waste biomass electricity generation equipment and heat generation equipment will be eligible for the ITC, aiming to further promote sustainable energy practices and investments in clean technology. Overall, these updates reflect a positive sentiment towards enhancing the clean technology and hydrogen ITC frameworks, underlining the government's commitment to fostering clean energy investments, supporting sustainable development, and driving economic growth through targeted tax incentives and policy adjustments.