Members of Chemistry Industry Association of Canada are calling for a 5 year extension of the accelerated capital cost allowance (ACCA) for new machinery and equipment. The ACCA was first introduced in the 2007 federal budget. ACCA allows businesses to defer the taxes they pay at the beginning of a project (when cash flow is most urgently needed) until a later date. Leaders of the industry opine that this tax is critical to the survival of Canadian manufacturers as fresh investments in new machinery and equipment will make our manufacturers more productive and competitive, will foster innovation and reduce emissions, and will ultimately make our manufacturing sector more sustainable.
The current ACCA - which is only available to businesses once new machinery or equipment is installed - will expire at the end of 2011.