McGuinty government improves manufacturers' competitiveness, promotes clean energy



    More than $400 million in tax relief for Ontario manufacturers

    THUNDER BAY, ON, April 20 /CNW/ - Finance Minister Greg Sorbara announced
today that Ontario is proposing to parallel the corporate income tax
incentives in the 2007 federal budget that benefit manufacturing and support
clean energy generation.
    "These measures will provide more than $400 million in Ontario tax relief
over the next three years to manufacturers," Sorbara said. "For Ontarians,
this translates into a more vibrant province and competitive economy."
    The Ontario government will parallel tax incentives in the 2007 federal
budget for:
    
    -  manufacturing and processing machinery and equipment;
    -  computers, buildings and pipelines; and
    -  clean energy generation.

    "Paralleling these measures is consistent with Ontario's goals to
encourage business investment and support corporate tax harmonization,"
Sorbara said. "The tax relief generated from these measures will foster new
jobs and economic growth in communities throughout the province, while also
spurring investment in green technologies."
    These measures build on other investments the government is making to
support manufacturers and other businesses in Ontario, which include
accelerating the elimination of the capital tax and cutting high Business
Education Tax rates by $540 million.

    Disponible en français

                 For more information visit www.fin.gov.on.ca



    Backgrounder
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             IMPROVING COMPETITIVENESS FOR ONTARIO MANUFACTURERS

    Subject to federal implementation, Ontario proposes to parallel the
corporate income tax initiatives relating to capital cost allowance announced
in the 2007 federal budget. Measures that will benefit the manufacturing
sector include:
    -  A new temporary tax incentive for manufacturing and processing
       machinery and equipment acquired after March 18, 2007 and before
       January 1, 2009;
    -  Extending accelerated capital cost allowance (CCA) rates for a broader
       range of clean energy generation assets acquired after March 18, 2007;
       and
    -  Increasing the CCA rates for the following assets acquired after
       March 18, 2007:
           -  buildings used for manufacturing and processing,
           -  other non-residential buildings,
           -  computers,
           -  natural gas pipelines, and
           -  liquefied natural gas facilities.

    Paralleling these federal measures will enhance Ontario's competitive
position and provide manufacturers with more than $400 million in Ontario tax
relief over the next three years.
    To support Ontario's manufacturing sector, the 2007 Ontario Budget
proposed:
    -  The creation of a new Ontario Manufacturing Council that would provide
       regular updates to the Minister of Economic Development and Trade on
       the state of this sector;
    -  Lowering the investment project size threshold for loan applications
       to enable more small and medium-sized businesses to participate in the
       Advanced Manufacturing Investment Strategy to create and retain jobs;
    -  Extending the Apprenticeship Training Tax Credit to eligible
       apprentices who start employment before January 1, 2012, and adding
       six more eligible trades;
    -  Accelerating the elimination of the capital tax to July 1, 2010; and
    -  When fully phased-in, reducing high Business Education Tax rates by
       $540 million, benefiting more than 500,000 businesses in 321
       municipalities across the province.


    Disponible en français

                 For more information visit www.fin.gov.on.ca
    





For further information:

For further information: Michael Arbour, Minister's Office, (416)
325-4138; Scott Blodgett, Ministry of Finance, (416) 325-0324; Trina Melatti,
Minister's Office, (416) 325-4685

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