Some changes affecting businesses
In its budget brought down on March 22, the Government of Canada announced several interesting measures for international corporations with establishments in Québec.
Business Growth and Innovation
- As of 2017–2018, up to $800 million will be made available over four years to support innovation networks and clusters. This innovation program will be presented in the course of the year.
- An additional $50 million will be dedicated to the Industrial Research Assistance Program (IRAP) in 2016–2017 to support innovative, growth-oriented SMBs by providing them with advisory services and funding for their research projects.
- As of 2016–2017, $50 million will be paid to the National Optics Institute over five years from Canada Economic Development for Québec Regions.
- As of 2018–2019, $20 million will be provided over eight years to create two additional Canada Excellence Research Chairs in fields related to clean and sustainable technology.
Tax Support for Clean Energy
The income tax system encourages businesses to invest in clean energy generation and energy efficiency equipment by providing accelerated capital cost allowance (CCA) rates. Budget 2016 proposes to expand eligibility for accelerated CCA in two important emerging areas: electric vehicle charging and electrical energy storage.
Tariff Relief for Manufacturers
- The government will eliminate tariffs on about a dozen manufacturing inputs to enhance the competitiveness of manufacturing companies at home and abroad.
- The government announced its intention to launch public consultations on eliminating tariffs on food manufacturing ingredients other than supply-managed products. Eliminating tariffs on imported ingredients will support investment and job creation in this important sector by strengthening the competitiveness of Canadian agri-food processors in domestic and foreign markets.
Read more on the Federal Budget