Finance Committee on Jan. 26th, 2026

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you, Madam Chair, and happy new year to you.

Ladies and gentlemen, thank you for being here today.

I'll start with the extension of the carbon capture tax credit. The Bloc Québécois has very clearly stated its position on this: We are against fossil fuel subsidies. Regardless of what the government says, tax credits for carbon capture are veiled fossil fuel subsidies. We clearly understand this government's identity: It's an oil and gas government.

I'd like to know exactly how much this measure will cost between now and 2035.

[Maximilian Baylor]

To be clear, I have to say that Bill C‑15 talks about an extension. Full rates applied until 2030, and then rates fell 50% from 2031 to 2040. The change announced in the budget is to say that from 2031 to 2035—

[Jean-Denis Garon, Bloc, Mirabel, QC]

Can you give me the amount?

[Maximilian Baylor]

Yes. It's $3 billion for 2030 to 2035.

I just wanted to give you some background: The reason it's not in the budget is that it's off the tax horizon. Off the tax horizon, we're talking about $3 billion over five years.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Perfect.

Unlike other people, I've read the budget, so that's fine.

I'd like to know whether the tax credit will apply to enhanced oil recovery, that is to say, when oil is used to make more oil. Will it apply?

[Maximilian Baylor]

Not under the current legislation, no.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Okay, so it doesn't apply yet.

In the document produced by the department, it says that 20 to 40 projects could benefit from the measure and that up to 10 more could benefit from its extension.

Do you have a list of projects that's available to parliamentarians?

[Maximilian Baylor]

We don't have a project list per se. We base ourselves somewhat on what we perceive potentially. At the end of the day, in terms of knowing which projects are carried out, obviously, we'll have to wait and see.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Therefore, in the budget document, you don't even have any potential projects. You could have said there were 5, 20, 30 or 40. You lick your finger, raise it in the air and say it's going to be 10, is that it?

[Maximilian Baylor]

No. It's based more on anticipated projects, not potential ones.

[Jean-Denis Garon, Bloc, Mirabel, QC]

So you don't have a list.

[Maximilian Baylor]

Yes, we have—

[Jean-Denis Garon, Bloc, Mirabel, QC]

These are anticipated potential projects, but you don't have a list.

[Maximilian Baylor]

We have a list. I'm sorry, I may have misspoken. I'm simply trying to make the distinction that just because we base ourselves on a list of potential projects, that doesn't mean those projects will see the light of day. That's the nuance.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Would it be possible for you to send the committee the list of potential projects? Of course, we're all aware that they may not all see the light of day and that the government isn't carrying them out, but could you send that list to the committee?

[Maximilian Baylor]

I don't have it here with me, but I'll see what we can do.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Thank you, Madam Chair. Please follow up on that.

I want to come back to Mr. Leitão's question, a very good one about the clean electricity tax credit.

I'd like to know whether discussions have begun with Hydro‑Québec on this subject and whether this tax credit will apply to planned investments by Hydro‑Québec, such as its plans to build new dams. Hydro‑Québec has released a recent version of its strategic plan. Will Hydro‑Québec's new dams be eligible for the tax credit?

[Maximilian Baylor]

That's the idea, generally speaking. To answer your question and the previous one, I'd say that the purpose of the clean electricity investment tax credit is that Crown corporations, including Hydro‑Québec, be eligible for it.

[Jean-Denis Garon, Bloc, Mirabel, QC]

With all due respect, Mr. Baylor, if my wife asks me if I love her and I tell her that's the idea, generally speaking, she's going to be worried.

Is that a yes or a no?

[Maximilian Baylor]

As long as the investments are eligible, the answer is yes, absolutely.

[Jean-Denis Garon, Bloc, Mirabel, QC]

So, are new Hydro‑Québec dams eligible? Have you discussed this with Hydro‑Québec?

[Maximilian Baylor]

We expect they will be, yes. Investments in Hydro‑Québec dam projects are generally eligible, so we expect Hydro‑Québec will be eligible for this tax credit on those investments.

To answer your question about discussions with Hydro‑Québec, I would say that we've had discussions with Hydro‑Québec. It took part in the consultations, so its opinion is reflected in this.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Do you have an idea of the order of magnitude of the dollar amounts that could be granted to Hydro‑Québec under this tax credit, given the projects that were announced in the strategic plan?

[Maximilian Baylor]

I don't have the figure here in front of me for Hydro‑Québec specifically. In the budget, there's a number corresponding to the total dollar amount we expect to pay out for this tax credit. Some of that would go to Hydro‑Québec.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Do you have a breakdown by province?