What Does a Minority Carney Government Mean for Clean Economy ITCs?

Are ITCs at Risk? Not Exactly—But There Are Strings Attached

The Liberals have made it clear: they’re committed to “securing Canada’s energy and electricity sovereignty,” and investment tax credits remain a cornerstone of that strategy. Their platform specifically highlights advancing Canada’s six ITCs, with a few notable enhancements:

1. Clean Technology ITC – This ITC will likely be expanded to include electricity/heat systems powered by waste biomass, with further clarification on eligible activities. Some early-stage planning work would be explicitly excluded.

2. Clean Electricity ITC – This ITC, which would be available for non-taxable corporations, Crown corporations, and pension funds,  is central to a proposed nation-building project: a pan-Canadian East-West electricity grid as well as repowers.

3. Clean Technology Manufacturing ITC – This ITC could be expanded to include critical mineral mine development expenses at brownfield sites and broaden the list of priority critical minerals. 

But in a Minority Parliament, Collaboration Is RequiredNone of this moves forward without support from other parties. The most aligned partner is the NDP, which has been broadly supportive of clean energy ITCs—but with a twist. Their campaign has emphasized workers’ rights, union jobs, and training partnerships. Expect them to push for:

✅ More stringent Labour requirements

✅ Stricter enforcement and clearer compliance expectations

✅ Greater emphasis on job creation through union-led initiatives

This reinforces the importance of a well-developed Labour requirements strategy—especially for developers and investors counting on ITC eligibility.

Takeaway

ITCs aren’t going anywhere—but under a minority government, expect greater scrutiny, more complex negotiations, and a renewed focus on labour standards. The NDP remains the most likely partner to support this clean economy agenda. However, given their experience in the last Liberal minority government—where they cooperated closely but saw little political reward and lost seats—they may take a tougher stance this time around. Developers and investors should be prepared for more assertive demands around Labour requirements and ensure they have a robust ITC compliance and workforce strategy in place.

We will continue to monitor and report on any new developments related to Clean Economy ITCs.

At LCAB, we specialize in helping companies manage the ITC's Labour requirements proactively, ensuring documentation is in order before the review begins. If you want to minimize non-compliance risk and accelerate your ITC recovery, please don’t hesitate to reach out or book time with us.