For years, the Tourism Industry Association of Canada (TIAC) has advocated for tax incentives that give tourism businesses better access to the capital they need to grow. Measures included in the Government of Canada’s proposed Productivity Mega Deduction represent a significant step forward in that national advocacy.
The new incentive would allow tourism businesses to immediately expense a wider range of eligible investments, including certain vehicles, infrastructure and technology. This could help businesses modernize, expand and remain competitive.
The measure is particularly relevant in the Yukon, where tourism businesses face high costs when purchasing equipment, adopting new technology and investing in their operations. Allowing eligible investments to be deducted in the year they become available for use could reduce taxes owing and help businesses retain more cash for continued investment.
However, TIAC has also made clear that its work is not finished. Real estate is a primary asset for many tourism businesses, including accommodations and attractions, but most buildings and real estate are not included in the new incentive. TIAC will continue advocating for their inclusion in future tax measures.
TIA Yukon is pleased to share this progress from our national partner. Investment in tourism is an investment in Canadian businesses, communities and the strength of Canada as a place to live, work and visit.
