Prime Minister Announces Tax Incentive (GALLERY)

Canadian Prime Minister Stephen Harper makes an announcement at Valiant Machine & Tool in Windsor, May 14, 2015. (Photo by Mike Vlasveld)

The Harper government is promising tax incentives for manufacturers over the next ten years.

The tax incentive includes capital cost allowance at a rate of 50% on a declining-balance basis for machinery and equipment used in manufacturing.

Jay Myers of Canadian Manufacturers and Exporters says it essentially allows businesses to modernize their facilities, which helps the sector with recession recovery. “The type of companies that we’ve seen recovering are companies like Valiant (Machining & Tool) here (in Windsor). They’re very high tech, they’re very specialized and they’re going into new markets around the world. That’s the formula for success today in manufacturing.”

Myers believes this incentive could help to create hundreds of thousands of manufacturing jobs in Ontario alone over the next decade.