Canada: New Tax Incentives To Advance Liquefied Natural Gas Projects
On February 19, 2015, the Canadian government announced new proposed tax incentives intended to encourage investment decisions with respect to liquefied natural gas (“LNG”) projects. The tax incentive takes the form of an enhanced rate of capital cost allowance (“CCA”, being the tax version of depreciation) of:
30% for equipment used in natural gas liquefaction; and
10% for buildings at a facility that liquefies natural gas,
in each case for capital assets acquired between February 19, 2015 […]