Manufacturing highlights from the 2013 federal budget

Federal Finance Minister Jim Flaherty tabled his 2013 budget last week. Here’s a look at some policies that could directly impact plastics manufacturers.

• Another two-year extension of the temporary accelerated capital cost allowance for new investment in machinery and equipment will total $1.4 billion for Canada’s manufacturers and processors from 2014 to 2018.

• The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) gets a five-year, $920 million renewal starting April 1, 2014. The budget earmarks $200 million from that money for a new Advanced Manufacturing Fund in Ontario, also stretching five years and starting on April 1, 2014.

• The Strategic Aerospace and Defence Initiative will get close to $1 billion over five years. Of that money, $110 million over four years, beginning in 2014, will fund an Aerospace Technology Demonstration Program. The program will get $55 million annually thereafter.

• The temporary Hiring Credit for Small Business will be extended for one year and expanded at a cost of $225 million.

• The Lifetime Capital Gains Exemption will increase to $800,000 and is indexed to inflation. This $110 million, five year commitment is aimed at supporting small business owners, farmers and fishermen.

• The 2013 Budget commits to continued red tape reduction and small business service reductions, as well as reviewing and updating the Code of Conduct for the Credit and Debit Card Industry in Canada.

• Approximately $121 million over two years will go to the National Research Council to help the growth of innovative businesses in Canada. Small and medium-sized enterprises will get help accessing research and business development services at universities, colleges and other non-profit research institutions with a $20 million, three year program.