rebate for Ontario
manufacturers and resource companies|
The final round of the
McGuinty government's capital tax rebate cheques for Ontario manufacturers and
resource companies is being delivered this month.
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
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
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.
“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,” said Premier Dalton McGuinty.
“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,” said Ian Howcroft, Vice President of the Ontario Division
for Canadian Manufacturers & Exporters.