Harper highlights budget business incentive

BRAMPTON, Ont. -- Prime Minister Stephen Harper pledged Wednesday to re-introduce an incentive for businesses to invest in new equipment that was included in last week's dead-on-arrival budget.

If re-elected, the Tories would offer a two-year extension of the capital cost allowance, which is currently set to expire at the end of the year.

The program allows businesses to accelerate the timing of their capital cost deductions by 50%, deferring taxation and improving financial return on investments in new equipment and machinery.

According to Conservative Party estimates, the two-year extension of the program will save Canadian manufacturers more than $600 million in 2012-2013, and an estimated $2.5 billion over the next five years.

The Canadian Manufacturers and Exporters issued a release to say the lobby group is in favour of the extension, which remains a top priority in the industry.

Harper made the announcement at an auto parts mold manufacturer. The Tories have now travelled to this voter-rich and ethnically diverse Toronto suburb twice in just four days. The Tories are clearly hoping to capitalize on Immigration Minister Jason Kenney's inroads into immigrant communities, and also Julian Fantino's win in a byelection late last year in Vaughan, a riding just north of Toronto.

The Tories are looking to defeat Liberal incumbent Ruby Dhalla, who won a squeaker in 2008 in Brampton-Springdale.

They are also targeting several other Liberal ridings in the area.

Later Wednesday, Harper is expected to travel to Montreal for a rally before heading to the East Coast for the next leg of the campaign.

bryn.weese@sunmedia.ca