Capital tax refund benefits Ontario manufacturers
McGuinty Government Helping Companies Through Global Economic Challenges
The final round of the McGuinty government's capital tax rebate cheques for Ontario manufacturers and resource companies is being delivered this month.
Eliminating capital taxes helps Ontario manufacturers and resource companies get through the current economic challenges caused by high oil prices, a high dollar and a slumping American economy. The money saved can be used to buy high-tech equipment, retrain workers or invest in research and development.
The Premier made the announcement while touring Honeywell's Mississauga aerospace manufacturing facility. Honeywell will save approximately $764,000 this year because of the elimination of the capital tax. They plan to reinvest the money in research and development.
In Budget 2008, the capital tax for manufacturers and resource companies was eliminated retroactive to January 1, 2007. For all other companies, capital tax rates have been cut by 21 per cent retroactive to January 1, 2007, on the way to full elimination in 2010.
Strategic tax cuts that help business are part of the McGuinty government's five-point plan to strengthen the economy. When fully phased in, Ontario will provide almost $3 billion annually in corporate tax cuts to encourage investment, attract jobs and make sure businesses are able to compete and thrive.
- The capital tax refund for manufacturers and resource firms is returning $190 million to Ontario companies.
- Ontario's combined federal-provincial corporate income tax rate is lower than the combined federal-state corporate income tax rate in all 50 American states.
“We have the right plan for the times, one that builds a stronger Ontario by supporting families and business. By eliminating the capital tax retroactively, we can help forward-thinking manufacturers become more productive so they can create and retain jobs.”
“Eliminating the capital tax was a priority for CME. The Premier's action to eliminate this tax will help manufactures to make the investments necessary to move ahead in these very challenging times.”