The first federal budget from Prime Minister Mark Carney’s Liberal government has been released, with finance minister François-Philippe Champagne promising “generational investment.”From a manufacturing perspective, the budget identified advanced manufacturing as a key pillar of this generational investment strategy. To boost productivity and attract investment, the government is introducing a set of enhanced tax incentives it is calling a productivity super-deduction, which will allow businesses to write off a larger share of their new capital investments right away.This initiative confirmed the government’s intention to move forward with all previously announced measures that allow businesses to write off the cost of their investments, including the reinstatement of the Accelerated Investment Incentive, a 100 per cent first-year write-off of manufacturing or processing machinery and equipment, the immediate expensing of productivity enhancing assets including patents, data network infrastructure and computers and more.To build on these measures, Budget 2025 also proposed the introduction of immediate expensing for manufacturing or processing buildings that are acquired on or after budget day that are used for manufacturing or processing before 2030. This measure would be phased out over a four-year period between 2030 and 2033.Key highlights of the budget for the plastics and chemistry sector include:Investment Incentives: Extension of the Accelerated Investment Incentive to 2030 and introduction of the Productivity Super Deduction to lower the cost of capital and spur new investment.Clean Technology and R&D: Enhancements to Carbon Capture, Utilization and Storage (CCUS) and Clean Hydrogen tax credits, alongside renewed commitments to reform the Scientific Research and Experimental Development (SR&ED) program.Critical Minerals Fund: $2 billion over five years to establish a Critical Minerals Sovereign Fund supporting strategic investments across Canada’s clean economy value chain.Climate Competitiveness: A review of industrial carbon pricing, an emphasis on carbon markets and CCUS technologies, and a more balanced approach to reducing emissions from oil and gas production.Anti-Greenwashing Provisions: Commitment to clarify recent Competition Act amendments to support credible business communications on environmental performance.The Ottawa-based Chemistry Industry Association of Canada (CIAC) said it “welcomed” the budget, which – it said – demonstrates “a renewed commitment by the Government of Canada to advancing economic growth, industrial innovation, and global competitiveness.” (ICE TORONTO)

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