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Interestingly, last year, Canada introduced tax credits to support the clean energy technology sector [1]. Its "total over $60 billion over the coming ten years
by abdullahkhalids 3y ago
Interestingly, last year, Canada introduced tax credits to support the clean energy technology sector [1]. Its "total over $60 billion over the coming ten years" [1]. But there is also some actual money in the same package.
So I wonder, what the thinking of the government is in deciding when tax credits and when direct subsidy.
[1] https://www.canada.ca/en/environment-climate-change/news/2023/04/minister-guilbeault-highlights-the-big-five-new-clean-investment-tax-credits-in-budget-2023-to-support-sustainable-made-in-canada-clean-economy.html https://www.canada.ca/en/environment-climate-change/news/202...
- depereo 3y agoTax cuts are used more often when the government wants to see more private investment into an industry. Not really an issue with 'AI' right now. Direct subsidy is more common when the government wants to see a particular outcome; then they can more easily steer those funds to realize it.