Canada's latest budget backs the cleantech sector, improves university infrastructure and supports researchers, but has frozen the small business tax rate at 10.5%.
The government of Canada has released its latest budget to the smiles and frowns of different sectors, Bloomberg has reported.
The budget did not mention increasing the amount of stock options startups and businesses can offer that are taxed as income, something Prime Minister Justin Trudeau’s liberal party mentioned while campaigning. The news is however positive for startups that will now not have to face losing employees over stock options.
The budget also set aside C$2bn ($1.5bn) over the coming three years to enable universities to renovate existing buildings and construct new ones. On top of this, the budget includes an additional C$95m per year for university researchers.
Also on the positive side of the budget, cleantech companies will find they have access to more funding as the government plans to allocate C$1bn over four years for the sector. Some of this additional capital will be funnelled into a government-run venture capital fund for the sector.
To back this cleantech funding, the budget also includes tax incentives for cleantech companies.
However, the good news is not shared by everyone. Small business owners have seen their tax rate, which was dropping under the previous government, become frozen at 10.5%. The original plan had been for the rate to hit 9% by 2019.