Prime Minister Stephen Harper is promising to help Canadian manufacturers with a 10-year tax incentive.
It is intended to boost productivity-enhancing investment, he announced at Valiant Machine &Tool Inc., in Windsor on Thursday morning.
“The ten-year tax incentive highlighted today will provide manufacturers with the support they need to continue generating jobs and economic growth across the country,” says Harper.
Economic Action Plan 2015 proposes to provide an accelerated capital cost allowance at a rate of 50 per cent on a declining-balance basis for machinery and equipment used in manufacturing and processing.
The government says it 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.
“If Canada is to stay strong, it must make things,” says Harper.
An accelerated capital cost allowance was first introduced in 2007 to encourage investment in machinery and equipment used in manufacturing and processing. That measure will expire at the end of 2015.
The new plan proposes to support investment over the next 10 years.
Diane Finley, Minister of Public Works and Government Services, Lisa Raitt, Minister of Transport and Essex MP Jeff Watson were on hand for the announcement.
