The federal government is increasing the capital gains tax on companies. The budget increases the inclusion rate on capital gains from one-half to two-thirds, which is expected to increase government revenue by nearly $20 billion over the next five years. CME states that this is the last thing the Canadian economy needs, especially in light of Canada’s investment and productivity growth woes. Such measures would deter investment at a time when businesses are striving to boost competitiveness and innovation within the industry and across the economy.CME is pleased to see the budget propose additional measures to help the manufacturing sector remain competitive during the transition to a clean economy, including the expansion of the Clean Technology Manufacturing investment tax credit to include critical minerals production and the introduction of a new 10 percent Electric Vehicle Supply Chain investment tax credit. The association adds that the government needs to accelerate the rollout of these measures to clear up uncertainty and encourage vital investments in the economy.The association adds that Budget 2024 proposed several supports that will help boost innovation and growth in Canada’s manufacturing sector, including several measures which CME has advocated for. These include:Providing $600 million over four years, and $150 million per year ongoing, for future enhancements to the Scientific Research & Experimental Development tax credit, an essential step if the modernization of the program is to be successful.Targeted Artificial Intelligence (AI) support of $2.4 billion, including $200 million over five years to, among other things, accelerate AI adoption in critical sectors, including manufacturing.Support for modular and prefabricated manufacturing, including $500 million for an Apartment Construction Loan Program to provide low-cost financing for new apartments that use, among other things, prefabricated homebuilding techniques. (ICE TORONTO)

Fonte notizia: https://www.canadianmanufacturing.com/