The Federal government presented the Fall Economic Update last week. You‘ve probably heard major announcements in the news. But I wanted first to read over 100 of pages of the document, to make sure you get the most accurate summary of the changes in the Federal funding programs for businesses. Here is our analysis, which, hopefully, makes more sense to you compared to the mainstream media buzz.
1) The cost of machinery and equipment will be eligible for a full tax write-off the year it is put in use in the business. It doesn’t appear that there is an application procedure to be allowed to use immediate expensing. Waiting for CRA instructions on that. Get Started
The Federal government renewed the funding for Yves Landry Foundation’s AIME Initiative, a successful incentive program for skills training. The program pays 50% of the training cost, including labour, up to up to $100,000 in non-repayable funding. The applications are accepted on a continuous basis but the funding can be depleted fast. Only the manufacturers employing over 10 employees in Southern Ontario can apply.
The money can be spent on developing new engineering skills, training in the use of new software, hardware or advanced production equipment, retraining to embrace new technologies, new manufacturing methods, processes or techniques (e.g. lean manufacturing, quality & supply chain management, etc). Get Started