Ottawa cuts business investment tax rate to 6.4%, lowest in G7
“The effect is straightforward. When you invest in Canada, you can deduct substantially more of that investment immediately,” Prime Minister Mark Carney told the summit, according to Reuters.
Newly eligible property includes oil and gas pipelines, mining property, fibre-optic cable, software, research and development, computer equipment, aircraft and vehicles, patents, rail track, bridges, and roads.
Immediate expensing, which Ottawa is making permanent, allows the full cost of an asset to be written off in the year it becomes available for use, rather than deducted over years under the capital cost allowance system.
The Canadian Press, citing a government backgrounder, put the fiscal cost at $36bn over five years.
The Prime Minister’s Office said the summit produced close to $500bn in new investment commitments.
