Bridging the Energy Retrofit Gap through

Federal Tax Policy Revisions

Retrofit Gap

Expectations

• >100% economic enhancement in tax shield for energy efficiency retrofit spending

• >125,000 tonnes eCO2/yr reduction in Toronto (based on TowerWise case studies)

Strategy

• Effective Coalition• “Skin in the game”• Led by Canadian Federation of Apartment Associations

• Deliver “aligned” tax policy recommendations with embedded audit verification mechanism

• Ongoing dialogue with Finance and NRCan• Marketplace communications

Coalition Message

• Jobs, Jobs, Jobs• Tax Policy more effective than grant programs

• eg grant “free riders” and red tape• Critical to achieving Canada’s GHG emissions

reduction moving targets• Federal Government needs to synergize

marketplace decisions

Jobs

Draft Income Tax Recommendations• Expand 100% deductible Canadian Renewable and

Conservation Expense (“CRCE”) definition• % Deductible function of third-party verified energy

savings in excess of threshold• Ensure renounceable into CRCE flow-through shares• Monitoring US analogies - 179D 100% deductions,

1603 grants in lieu of tax credits and Feb 2011 Obama’s BBI (eg deductions converted to tax credits)

Please Sign-Up

• Tom Routley 416 575 2846, tom.routley@greenfogbusters.com• John Dickie 613 235 0101, president@cfaa-fcapi.org