Recommendations:

• Extend the full 100% Accelerated Capital Cost Allowance with no phase-out until 2030 and make it permanent to offset the damage of the COVID-19 pandemic;
• Work with the provinces to maximize the impact of investment support programs by ending the taxation of investment support programs;
• Reform the SR&ED program to help foster R&D in Canada by raising the investment tax credit to 20% from the current 15% and eliminating or substantially raising the upper limit for taxable capital phase out range from the current $50 million, reinstating capital expenditure eligibility that was phased out beginning January 1, 2013; and eliminating the 20% disallowance on arm’s-length consulting payments;
• Establish the Plastic Technology Innovation Fund (PTIF) with an initial allocation of $200 million, operated by Natural Resources Canada to further research and development of groundbreaking plastic technology applications in Canada.