(Christopher Donville, Josh Wingrove and Rebecca Penty – Bloomberg)
Canada is giving tax breaks to liquefied natural gas projects in an effort to spur multibillion-dollar investments that so far haven’t gone past proposals.
Over the next decade, under the draft regulations, companies making capital spending in LNG megaprojects will be able to deduct costs more quickly, allowing them to defer some tax payments and recover their investments sooner.
The new capital cost allowance rate would be 30% for equipment used in gas liquefaction, up from 8%, and 10% for buildings, from 6% previously, Prime Minister Stephen Harper said in Surrey, British Columbia, on Thursday. Click here to read more.