Canadian Finance Minister Jim Flaherty (Photo credit: Wikipedia)

The Honourable Jim Flaherty, Minister of Finance, today introduced the Economic Action Plan 2013 Act, No. 1. The Act proposes to legislate key elements of Economic Action Plan 2013, including tax relief for investments in new manufacturing machinery and equipment, and indexing the Gas Tax Fund to offer stable, predictable funding for municipal infrastructure.

“While Canada has fared better than most in the aftermath of the worst recession in a generation, the global economy remains very challenging,” said Minister Flaherty. “Through the Economic Action Plan 2013 Act, No. 1 the Harper Government remains squarely focused on what’s important to Canadians, creating jobs and economic growth—while keeping taxes low and balancing the budget by 2015.”
Measures in the Economic Action Plan 2013 Act, No. 1 advance economic progress and prosperity by:
BUILDING A STRONGER ECONOMY AND PROMOTING JOB GROWTH:

Extending for two years the temporary accelerated capital cost allowance for new investments in machinery and equipment by Canadian manufacturers.
Indexing Gas Tax Fund payments to better support job-creating infrastructure in municipalities across Canada.
Reforming the Temporary Foreign Worker Program to ensure that Canadians are given the first crack at available jobs.
Extending for one year the Mineral Exploration Tax Credit for flow-through share investors.
Modernizing the Investment Canada Act as announced in December 2012 to clarify the treatment of proposed investments in Canada by foreign state-owned enterprises and the timeline for national security reviews.
Providing $165 million in multi-year support for genomics research through Genome Canada.
Providing $18 million to the Canadian Youth Business Foundation to help young entrepreneurs grow their firms.
Providing $5 million in 2013–14 to Indspire for post-secondary scholarships and bursaries for First Nations and Inuit students.

SUPPORTING CANADIAN FAMILIES AND COMMUNITIES:

Promoting adoption by enhancing the Adoption Expense Tax Credit to better recognize the costs of adopting a child.
Introducing a new, temporary First-Time Donor’s Super Credit for first-time claimants of the Charitable Donations Tax Credit to encourage all young Canadians to donate to charity.
Expanding tax relief for home care services to better meet the health care needs of Canadians.
Removing tariffs on imports of baby clothing and certain sports and athletic equipment.
Providing $56 million in total transfer protection payments to Manitoba and New Brunswick.
Providing $30 million in 2013–14 to support the construction of new housing in Nunavut.
Investing $20 million in the Nature Conservancy of Canada to continue to conserve ecologically sensitive land.
Providing $3 million to the Pallium Foundation of Canada to support training in palliative care for front-line health care providers.
Committing $3 million to the Canadian National Institute for the Blind to expand library services for the blind and partially sighted.
Supporting veterans and their families by no longer deducting veterans’ disability benefits when calculating other select benefits.
Streamlining the process for approving tax relief for Canadian Armed Forces members and police officers.

RESPECTING CANADIAN TAXPAYERS’ DOLLARS:

Improving the fairness of the tax system.
Eliminating duplication.
Taking steps to align employee compensation offered by Crown corporations with what is available to federal employees.

“Canada’s Economic Action Plan 2013 advances a solid vision that has a proven track record,” said Minister Flaherty. “This is an intentional, consistent plan for jobs, growth and long-term prosperity that we have implemented with firm commitment.”
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