Canadian Budget Measures Enacted

by Mike Godfrey, Tax-News.com, Washington

20 December 2011

Canadian Finance Minister Jim Flaherty has announced that several tax measures announced as part of the 2011 Budget in June have received Royal Assent.

The Keeping Canada’s Economy & Jobs Growing Act was enacted on December 16 and provides for a number of tax breaks designed to promote job creation and economic growth.

The Act puts into place a temporary Hiring Credit for Small Business to encourage additional hiring, and extends the accelerated capital cost allowance treatment for investments in manufacturing and processing machinery and equipment for two years to support the manufacturing and processing sector.

The legislation also expands tax support for clean energy generation to encourage green investments and extends the Mineral Exploration Tax Credit for flow-through share investors by one year to support Canada’s mining sector. Customs tariffs are also simplified to facilitate trade and help ease the administrative burden on businesses.

“As Canadians prepare for the holiday season, they can be assured our government remains focused on what matters to them, creating jobs and promoting economic growth,” said Flaherty.

“The measures in this Act will help support the strongest job growth in the G-7, with nearly 600,000 net new jobs created since July 2009. And as we prepare next year’s budget, we are listening closely, consulting with Canadians across the country to better prepare the next steps to secure our future prosperity in these difficult economic times," he added.

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