2015-2016 Federal Budget highlights that relate to the life sciences industry:
- Reduction of the small business tax rate from 11% to 9% (reduction of 0.5% per year for 4 years starting on January 1, 2016)
- For companies purchasing manufacturing and processing machinery and equipment, an extension of the accelerated capital cost allowance rate
- $1.33B of new funding over the next six years through the Canada Foundation for Innovation (CFI) to support the research infrastructure at Canadian universities, colleges and research hospitals
- $46M in 2016/2017 and ongoing to the granting councils, including NSERC, SSHRC, CIHR and the Research Support Fund
- $119.2M over the next two years to support the NRC IRAP program
- $56.4M over four years starting in 2016/2017 to support 6,000 industrial research internships for graduate students through the Mitacs Accelerate program
- $14M investment in Futurpreneur Canada over two years to help an estimated 2,700 young entrepreneurs access financing and programs to help them build business and create jobs
- $50M over five years to create an export market development program assist small- and medium-sized enterprises as they explore and pursue new export opportunities
- $42M over five years to create the Canadian Centre for Aging and Brain Health Innovation (CC-ABHI) in partnership with the Baycrest Foundation and about 40 other partners which will be dedicated to the development, validation, commercialization and adoption of brain health and seniors care products and services
- Changes to Canada's intellectual property framework.
It is important to remember that this is a pre election budget with many initiative announcements being planned for post election. In other words, subject to change!