Canada is falling dangerously behind its peers in business investment, research and development, digitalization, and the deployment of advanced technologies. Ongoing stagnation has muted Canada’s economic potential, dragging down productivity, and preventing the development of the modern manufacturing sector.
Bold, decisive action is needed to reverse this decline and position Canada to compete and succeed in a rapidly evolving global economy. That means reforming outdated procurement and R&D systems to aggressively drive innovation, build much-needed investments in trade-critical infrastructure, and deliver pro-growth tax reforms that unlock private sector capital and ambition.
To achieve desired levels of investment, CMC will seek improvements to Canada’s taxation system to support manufacturing and encourage growth. These changes should include:
- A 10 per cent refundable manufacturing investment tax credit for new buildings, machinery, equipment, and software by expanding the Atlantic Investment Tax Credit nationwide.
- A permanent extension of the Accelerated Investment Incentive, allowing manufacturers to immediately deduct the full cost of machinery and equipment.