An article in 20/20 Magazine says that large manufacturing companies stand to lose the most out of the recent changes to the SR&ED program that were proposed by the 2012 federal budget. The new proposals will reduce the general investment tax credit rate, which applies to the majority of large corporations, from 20% to 15% by 2014, and remove capital expenditures from SR&ED eligibility by 2014.
Investment capital that multi-nationals have set aside for Canada may now go to other countries with more lucrative SR&ED programs. It will become increasingly difficult to convince multi-national manufacturing companies to open up operations in Canada.
