Ontario matches feds’ tax perk for businesses on capital investments
Ontario is matching the federal government’s recent move to give businesses a tax break on capital investments.
Finance Minister Peter Bethlenfalvy made the announcement ahead of Thursday’s fall economic statement.
Last year, Prime Minister Mark Carney and the federal government allowed businesses to immediately deduct 100 per cent of the cost of some investments, such as machinery, equipment and technology, which applied to about 15 per cent of the investment in capital costs.
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Last month, Carney updated the measure, allowing two thirds of assets to qualify.
Bethlenfalvy says Ontario’s measures would provide about $8 billion in relief that will be a boon to the country over the long term by attracting more businesses to the province.
He says this brings Ontario’s marginal effective tax rate to 3.6 per cent.
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