Canada Global (Web News) A new tax credit that the government is recommending in its forthcoming budget would allow manufacturers in Ontario to receive up to $2 million annually.
Private corporations under Canadian management having a physical presence in Ontario may claim the 10% refundable corporate income tax credit on eligible purchases of structures, machines, and equipment for manufacturing or processing.
The announcement was made on Wednesday in Oakville, Ontario, by Premier Doug Ford and his ministers of finance and economic development, one day before the budget is scheduled to be presented.
According to Ford, this new tax credit will support local manufacturers’ expansion, innovation, competitiveness, and—most importantly—ability to produce well-paying employment.
The cost of the Ontario Made Manufacturing Investment Tax Credit is estimated by the government to be $780 million over three years.
Up to $20 million in qualifying investments per year would be eligible for the tax credit.
The new tax credit is supported by Canadian Manufacturers & Exporters, according to its president and CEO.
Dennis Darby stated in a statement that “this new loan will go a long way to broadening our industrial strategy — providing dependable funding for key equipment purchases and greater productivity to support business growth.”