Last week the new provincial government published its first budget. Here are the most important initiatives for the business.
1. Introduction of Ontario Job Creation Investment Incentive. This is not a direct government funding program but an immediate write-off for eligible manufacturing and processing machinery and equipment and clean energy equipment. It is coupled with the Accelerated Investment Incentive for most other assets.
The purpose of these incentives is to facilitate capital investments. The immediate or accelerated write-off will help Ontario businesses reduce provincial tax. Talk to your accountant about these initiatives.
2. Launch of the Ontario Automotive Modernization Program (OAMP) to assist automotive parts suppliers adopt technology and become more productive, innovative and export-focused
3. Enhancing Ontario’s Autonomous Vehicle Innovation Network (AVIN) and launch of a “wintertech” stream to test mobility products and services in severe winter weather conditions.
4. Northern Ontario funding program will remove the requirement that applicants must be looking for recent university or college graduates. Program candidates will now include new entrants into the workforce, those transitioning to a new career, the unemployed and underemployed.
5. The budget confirmed the commitment to the Canadian Agricultural Partnership.
6. The Ontario Interactive Digital Media Tax Credit. Companies under the Digital Games stream can apply for tax credit certification annually, rather than having to apply separately for each product they complete.
This spring, the Province will also be launching a micro-credentials pilot, which will create new, responsive training programs to help people develop the kind of in-demand skills that employers are seeking.
All other provincial funding programs will be reviewed during this fiscal year, and we expect more information later in 2019.