Prime Minister Stephen Harper today highlighted the Government of Canada’s plan to provide manufacturers with a ten-year tax incentive to boost productivity-enhancing investment. He was joined by Diane Finley, Minister of Public Works and Government Services, Lisa Raitt, Minister of Transport, and Jeff Watson, Member of Parliament for Essex.
Economic Action Plan 2015 proposes to provide an accelerated capital cost allowance (CCA) at a rate of 50 per cent on a declining-balance basis for machinery and equipment used in manufacturing and processing. This is a substantially faster write-off than the standard 30 per cent rate, allowing businesses to defer taxes and recover the cost of their capital investments more rapidly. The measure will apply to capital assets acquired after 2015 and before 2026.
This incentive will provide concrete, long-term support, enabling Canadian manufacturers to plan the investments that are needed to compete in a global economy. New investments will help position them to meet both present and future economic challenges, while creating jobs and growth. The ten-year term will provide businesses with more planning certainty for larger, long-term projects.
This initiative is one of many measures that the Government has taken to create an environment that enables Canadian manufacturers to prosper. Other examples include the Red Tape Reduction Action Plan, the Venture Capital Action Plan, concluding negotiations for the Canada-European Union Trade Agreement, and concluding negotiations and implementing legislation for the entry into force of the Canada-Korea Free Trade Agreement.
