Bill C-59, which recently received royal assent in Canada, brings forth new measures to support the development of Carbon Capture Utilization and Storage (CCUS) projects in the country. Among these measures is the Carbon Capture Utilization and Storage Income Tax Credit (CCUS-ITC), designed to incentivize investment in expanding CCUS capacity across Canada. The CCUS-ITC targets Canadian taxable corporations that engage in qualified CCUS expenditures for projects supporting a CCUS process, subject to stringent eligibility requirements. The CCUS-ITC offers different credit rates based on the type of CCUS project and the year of expenditure, with reductions in rates after 2030 to encourage early action. Eligible expenditures primarily cover costs incurred before the commercial operation start date of the CCUS project, with limitations on post-operation expenditures. Furthermore, the initiative mandates that CCUS projects must adhere to labor standards and regulatory requirements, with potential clawback provisions if CO2 use targets are not met. The establishment of the CCUS-ITC signals a significant step towards bolstering the economic viability of CCUS projects in Canada and aligns with the country's goals of reducing greenhouse gas emissions. Overall, Bill C-59 and the CCUS-ITC underscore the government's commitment to supporting sustainable energy practices and advancing environmental objectives. However, readers are advised that this overview is not exhaustive of all legal aspects, and consultation with legal professionals is recommended for specific guidance.