CPA Recommends Incentives, Tax Credits and Rebates

In its pre-budget brief to Federal Minister of Finance Bill Morneau, the Canadian Propane Association made a number of recommendations to create equal opportunity for propane, harness government grants for converting appliances to propane, and provide financial incentives for driving autogas vehicles.

"The propane industry has an important contribution to make in the fight against climate change, while at the same time creating jobs," noted CPA Executive Director Andrea Labelle in the brief. "Clean-burning propane has an important role to play in reducing greenhouse gases (GHGs). And it can do so without the huge capital investments required for other alternative fuels such as natural gas."

The CPA recommended the Federal Government:

• Ensure Canadians have real fuel choice. It is important that clean-burning propane be given an equal opportunity within the Federal Government as it develops environment and energy programs. This would include incentives to end users and as well as the propane industry’s participation in the development of federal level programs designed to reduce GHGs.
• Invest in a $200-million fund to assist homeowners, public institutions, and businesses in the conversion from fossil fuels, such as diesel and furnace oil, to propane.
• Invest in a $75-million fund specific to Indigenous and northern communities to assist in the conversion from fossil fuels to propane. The additional funding would recognize the higher cost burden faced by residents in these communities, making it easier for them to switch to clean-burning propane.
• Introduce a $5,000 tax credit per vehicle for converting commercial fleets from traditional fossil fuels to propane.
• Create a $50-million fund that would give 25,000 Canadians a $2,000 rebate towards the conversion of their vehicles from traditional fossil fuels to propane.