February 8, 2019 – Victoria, British Columbia – Department of Finance Canada
Canada's economy is strong and growing, with more jobs and opportunities for the middle class and people working hard to join it. However, more needs to be done to ensure that every Canadian has a real and fair chance at success.
Finance Minister Bill Morneau today spoke with members of the Greater Victoria Chamber of Commerce in Victoria, British Columbia, highlighting Canada's economic strength and the Government's continued efforts to build an economy that works for everyone.
Minister Morneau also welcomed the entry of Freedom Mobile, a subsidiary of Shaw Communications, into the Victoria market. This investment will give consumers in Victoria greater choice and more affordable options on vital cellular services. Shaw Communications' 2019 expansion plan takes advantage of the newly announced Accelerated Investment Incentive, introduced in the Government's most recent Fall Economic Statement and supports the Government's commitment to providing competition and choice for Canadians when it comes to telecommunications services.
By allowing businesses to write off a larger share of their costs in the year an investment is made, the Accelerated Investment Incentive makes it more attractive for businesses of all sizes to invest in assets that help drive business growth and create more good, well-paying jobs for middle class Canadians.
"In our Fall Economic Statement, we laid out a plan to grow the economy by investing in middle class jobs, helping Canadian businesses compete, and continuing to deliver real progress for the middle class. Today's investment will help bring next-generation digital technology and broadband service to more Canadians, including those living in rural communities. It's proof that our plan to support business investment is paying off, creating more jobs and opportunities for Canadians to succeed."
– Bill Morneau, Minister of Finance
Quick facts
The Government cut the small business tax rate to 10 per cent, effective January 1, 2018, and as of January 1, 2019, further reduced it to 9 per cent.
During the past three years, hard-working Canadians have created more than 800,000 new jobs, pushing the unemployment rate to its lowest level in over 40 years.
Under the Accelerated Investment Incentive, capital investments will generally be eligible for a first-year deduction for depreciation equal to up to three times the amount that would otherwise apply in the year an asset is put in use.
Tripling the current first-year rate will allow businesses to recover the initial cost of their investment more quickly—reducing risk and providing businesses in Canada with a true incentive to make capital investments.
The Accelerated Investment Incentive will apply to all tangible capital assets, including long-lived investments like buildings.
The Accelerated Investment Incentive will also apply to intangible capital assets, such as patents and other intellectual property.
