Canada extends assistance for manufacturing and processing sector
January 19, 2010 By Manufacturing AUTOMATION
Federal Finance Minister Jim Flaherty has extended the 50-percent straight-line accelerated capital cost allowance (CCA) rate for investments in manufacturing or processing machinery and equipment in 2010 and 2011, as set out in Canada’s Economic Action Plan.
“This measure will help businesses in the manufacturing and processing sector to restructure and retool,” Flaherty said. “In so doing, it will help them to better meet current economic challenges, boost productivity and position themselves for long-term success.”
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Canadian manufacturers and processors are already benefiting from the temporary 50-percent straight-line accelerated CCA rate measures announced in the 2007 and 2008 budgets. Businesses making eligible investments in 2010 and 2011 in manufacturing or processing machinery and equipment will benefit from the two-year extension of this accelerated CCA rate.
The two-year extension of the CCA rate is expected to provide $320 million in tax relief to Canadian businesses in 2011 to ’12, and $990 million in total over the period 2011 to ’12 to 2013 to ’14.