Canada’s Economic Update : what’s in for the industry ?
New tax incentive for the manufacturing and processing sector
To help the industry maintain its competitive position, the government proposes important changes to Canada’s tax system. It’s the manufacturing and processing sector that is more likely to be affected by the U.S. tax reform, put in place in 2017.
One measure stands out for this sector. The machinery and equipment used in Canada for the manufacturing and processing of goods will be eligible for immediate expenses. The cost of machinery and equipment is therefore eligible for a full tax write-off the year it is put in use in the business.
In short, it means that the cost for the machinery and equipment will be deductible the same year it is being used by the company.
Change is now for business
The Fall Economic Statement 2018 offers a variety of changes to support Canadian business investment. Finance Minister Bill Morneau also hopes to keep the country’s economy growing with those changes.
Changes taking place now :
- Allowing businesses to write off the full cost of specified clean energy equipment.
- Introducing the Accelerated Investment Incentive, an accelerated capital cost allowance (i.e., larger deduction for depreciation) for businesses of all sizes.
How will that help ?
The goal of the larger deduction is to give business the ability to invest now in assets. It is also hoped by the government that those changes will free up capital that could, then, be used to create more jobs.
IDCAM offers a wide variety of services to help your business get ahead of the compettition. Among the services ourteam of engineers and engineering technicians can provide, you will find mechanical design for your new production line or the integration for your workforce of a protection system, as well as industrial automation and robotics.
Only time will tell if Canadians business benefits from this new tax changes. The competition is fierce among the industry.
Business often thrives to make ends meet, especially in the highly competitive sector, such as the manufacturing and processing sector.