Ontario proposes $8B tax break for business investment

Ontario proposes a tax measure that would let eligible businesses immediately write off the full cost of a wide range of capital investments. It is the provincial part of the federal Productivity Mega Deduction and would take effect following passage of federal legislation.

• Tax relief: More than $8 billion over five years, according to the province.
• Eligible investments: Examples include software, machinery and equipment, fibre-optic cable, aircraft, rail track, bridges and roads.
• Estimated impact: At least $11 billion in additional investment, $6 billion added to GDP and 30,000 jobs.

The proposal is part of Ontario’s multi-year Tax Action Plan.