Our Conservative Government recognizes the vital role small businesses play in the economy and job creation – that’s why we are committed to helping them grow and succeed.

Economic Action Plan 2012 includes a number of key measures to support the growth of small businesses, such as:

  •  Extending the Hiring Credit for Small Business: A temporary credit of up to $1,000 against a small firm’s increase in its 2011 Employment Insurance (EI) premiums over those paid in 2012.  This temporary credit will help about 536,000 employers defray the costs of additional hiring.
  •  Increasing Direct Support for Business Innovation:
    •  $110 million per year to the National Research Council to double support to small businesses through the Industrial Research Assistance Program, and to expand the services provided to businesses through the programs Industrial Technology Advisors, including the introduction of a concierge service;
    •  $95 million over three years and $40 million per year ongoing to make the Canadian Innovation Commercialization Program permanent, in order to help Canadian businesses demonstrate their innovative products and services through federal procurement.
    •  $14 million to expand the Industrial Research and Development Internship program, in order to place more PhD students into practical research internships in businesses.
  •  Reducing Red Tape: implementing the ‘one-for-one’ rule and committing to develop a Red Tape Reduction action plan to reduce unnecessary and ineffective regulations, allowing small businesses to focus on growing and creating jobs.
  •  Reducing the Administrative Tax Burden on Small Business:
    •  Enhancing CRA’s secure My Business Account Portal
    • improving the business section on CRA’s website
    • doubling the thresholds for eligibility to use the GST/HST streamlined accounting methods
    • enhancing the predictability of the SR&ED tax incentive program
    • providing written responses to business enquiries by the CRA

We provided $20 million to support the Canadian Youth Business Foundation’s activities.  The Foundation works with young entrepreneurs to help them become the business leaders of tomorrow through mentorship, learning resources, and start-up financing.

Our Government also released a Code of Conduct for the Credit and Debit Card Industry in Canada to protect small businesses.

  •  The Canadian Federation of Independent Business has heralded the Code: “merchants have new powers under the Code that have helped them achieve tangible results in their dealings with the industry. This simply wouldn’t have happened without the Code.”

This builds on our Government’s significant action to reduce taxation for small businesses since 2006:

  •  We extended the accelerated Capital Cost Allowance for manufacturing and processing machinery and equipment to help manufacturers and processors make new investments in manufacturing and processing machinery and equipment.
  •  We increased the ‘small business limit’ to $500,000.  This refers to the amount of income earned by small businesses eligible for the reduced federal tax rate.
  •  We reduced the small business tax rate from 12 percent to 11 percent.
  •  We lowered the federal corporate income tax rate to 15 percent to help create jobs and economic growth for Canadian families and communities.
  •  We increased the Lifetime Capital Gains Exemption, which allows capital gains on qualifying small business shares to be realized tax-free, from $500,000 to $750,000.   The first time it has been increased since 1988.
  •  We helped small businesses invest in their companies through a temporary 100-per-cent capital cost allowance (CCA) rate for computers acquired after January 27, 2009 and before February 1, 2011.
  •  We eliminated the corporate surtax for all corporations in 2008.  While the elimination of the surtax benefits all corporations, it is of particular benefit to small business corporations since the surtax represented a larger proportion of their overall tax payable.


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