On 21 June 2019, Canada’s corporate income tax measures as included in three federal bills are deemed to be substantially enacted. The summary corporate tax measures are following:
- Increasing 15% tax credit for mineral exploration
- Introduce the accelerated investment incentive
- Introducing an immediate write-off of the full cost of capital machinery and equipment used in the manufacturing and processing of goods and the full cost of specified clean energy equipment
- Introduce a temporary enhanced first-year capital cost allowance of 100% for zero-emission vehicles (new Classes 54 and 55)
- Repeal the use of a CCPC’s taxable income as a factor when determining its annual eligible expenditure limit under the enhanced SR&ED tax credit, and
- Exclude from “specified corporate income” from sales of farming products or fishing catches of farming and fishing businesses to arm’s length purchaser corporations
- Increasing tax advantage for electric vehicle charging stations and electrical energy storage equipment.
