March 15, 2019 – Ottawa, Ontario – 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.
As part of that, Finance Minister Bill Morneau and Minister of Rural Economic Development Bernadette Jordan welcome the expansion of Xplornet Communications’ national broadband network. This investment will help Xplornet deliver high-speed internet services in rural and remote communities on the same timeline as in Canada’s largest cities.
Xplornet’s expansion takes advantage of the new Accelerated Investment Incentive, introduced in the Government’s most recent Fall Economic Statement. By allowing businesses to write off a larger share of their costs in the year an investment is made, the 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.
“Our government laid out a plan to grow the economy by investing in middle class jobs and helping Canadian businesses compete. Today’s investment is proof that our plan is working. This expansion will not only help grow Canada’s economy, but will also help bring broadband service to more Canadians, including those living in rural communities.”
– Bill Morneau, Minister of Finance
“The reality is that Canadians need reliable, affordable high-speed internet if they want a fair shot at succeeding and innovating in today’s economy. Too many Canadians, especially those living in rural and remote communities, don’t have that access. By helping businesses grow, especially rural Canadian businesses like Xplornet, we’re connecting more people to the modern, digital economy.”
– Bernadette Jordan, Minister of Rural Economic Development
“Thanks to the Accelerated Investment Incentive for telecommunications equipment, announced in the 2018 Fall Economic Statement, Xplornet will be able to accelerate our $500 million investment to provide 5G services to rural Canadians. The result will mean that by the end of next year, Xplornet will be providing 5G services to rural Canadians. We are grateful to the Government of Canada for their continued support of rural broadband.”
– Allison Lenehan, President and CEO, Xplornet
Xplornet will invest $500 million over the next five years to deploy a combination of fibre to the home and fixed wireless technology across Canada, an investment supported by the Government of Canada’s Accelerated Investment Incentive.
Under the Accelerated Investment Incentive, capital investments are generally 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—reducing risk and providing businesses in Canada with a true incentive to make capital investments.
The Accelerated Investment Incentive applies to all tangible capital assets, including long-lived investments like buildings.
The Accelerated Investment Incentive also applies to intangible capital assets, such as patents and other intellectual property.
In addition to the Accelerated Investment Incentive, the 2018 Fall Economic Statement announced immediate expensing of machinery and equipment used in manufacturing and processing, as well as specified clean energy equipment. Taken together, these measures will enhance business confidence in Canada.
During the past three years, hard-working Canadians have created more than 900,000 new jobs, pushing the unemployment rate to 40-year lows.