Chemistry industry lobbies for extension of accelerated capital cost
allowance

OTTAWA, Oct. 20 /CNW/ - Leaders of Canada's chemistry industry will be on Parliament Hill today to lobby for an extension of a tax measure they say is critical to the survival of Canadian manufacturers.

Chemistry Industry Association of Canada members are calling for a five-year extension of the accelerated capital cost allowance (ACCA) for new machinery and equipment, first introduced in the 2007 federal budget. Unlike a tax cut, the ACCA allows businesses to defer the taxes they pay at the beginning of a project - when cash flow is most urgently needed - until a later date.

"A five-year extension of the ACCA is critical for Canadian manufacturers," says Richard Paton, President of the Chemistry Industry Association of Canada.

"Investing in new machinery and equipment will make our manufacturers more productive and competitive, will foster innovation and reduce emissions, and will ultimately make our manufacturing sector more sustainable."

The current ACCA - which is only available to businesses once new machinery or equipment is installed - will expire at the end of 2011.

"That time frame is simply too short for many manufacturers to benefit," says Paton.

"Most large-scale manufacturing projects take around five years from the initial planning and approvals stage, to the point where the machinery or equipment is installed. So without a five-year time frame, the ACCA is failing to ensure that big projects - and the large number of jobs that they promise - get off the ground." 

As the voice of the chemistry industry, Canada's third largest manufacturing sector, the Chemistry Industry Association of Canada is part of a coalition of groups that strongly supports a five-year extension of the accelerated capital cost allowance.

For further information:

Sarah Mayes
Manager, Public Affairs
[phone] ext. 239