THE ACCA: A TAX CHANGE THAT’S A WIN-WIN FOR CANADA AND THE BUSINESS OF CHEMISTRY
Canada’s chemistry industry applauds the federal government’s extension of the accelerated capital cost allowance (ACCA) – a measure that the industry believes is critical to attracting renewed investment throughout the chemistry value-chain, from bio-based start-up companies to world-class petrochemical producers.
Unlike a tax cut, the ACCA allows businesses to defer the taxes that they pay at the beginning of a project until a later date. Since revenue drops significantly while new facilities are built or machinery is installed, the ACCA provides businesses with the cash they require to make those badly needed investments.
First introduced in the 2007 federal budget, the ACCA for new machinery and equipment was set to expire at the end of 2011. However, today, Finance Minister Jim Flaherty announced its extension until the end of 2013.
“This is great news for both Canadian manufacturers and the Canadian economy,” says Richard Paton, President of the Chemistry Industry Association of Canada (CIAC).
“Manufacturing was hit hard during the recession and still faces challenges with a high dollar and a slow recovery. But the ACCA will attract new investment to Canada, create jobs, foster innovation, and make our manufacturers more competitive and productive, which will have a multiplier effect throughout the Canadian economy.”
As the voice of Canada’s chemistry industry, Canada’s third largest manufacturing sector, the Chemistry Industry Association of Canada is part of a coalition of manufacturers that strongly supports the extension of the accelerated capital cost allowance.
For more information:
Vice-President, External Relations
Chemistry Industry Association of Canada