| 1. |
Leadership in niche markets
Ontario's well-established aerospace industry includes world leaders with global product mandates, top-of-the-line suppliers and a broad range of advanced manufacturing support services.
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| 2. |
Top ranked R&D tax incentives
Canada's R&D tax incentive program is widely recognized as one of the most generous in the world. The after-tax cost of a $100 R&D expenditure can be reduced to approximately $56 – or less than $37 for small businesses.
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| 3. |
Business taxes slashed
As part of a fundamental shift in tax policy, Ontario has dramatically cut business taxes covering capital, sales and corporate income taxes.
With a total combined provincial and federal (15 per cent) corporate income tax rate of 26.5 per cent, Ontario's combined general federal-provincial CIT rate is lower than the average of G8 and G20 countries and lower than the average federal-state CIT rate in the United States.
These tax initiatives are in addition to Harmonized Sales Tax (HST) input tax credits, capital tax elimination, Business Education Tax (BET) rate reductions and savings from a single corporate tax administration.
These comprehensive tax reforms position Ontario as one of the most attractive jurisdictions in the industrialized world for new investment. |
| 4. |
Green materials research
Scientists at universities, colleges and other publicly funded research centres across Ontario are helping companies develop lighter, stronger, more efficient next generation products using advanced polymers, bio-composites and super conductive materials. |
| 5. |
An exceptional workforce
Ontario has one of the best educated workforces in the G7. Our network of 20 universities and 24 colleges offer aerospace-specific programs ranging from Ph.D.-level studies in Toronto and Ottawa to technology-focused programs at colleges across the province.
More than 150 languages are spoken in Ontario, creating a “people” resource that supports global sourcing, sales and partnerships. |
| 6. |
Efficient transportation infrastructure
Our transportation systems can help move products quickly and efficiently across the continent and around the world.
Toronto's Pearson International Airport is Canada's busiest, with 79 airlines offering direct service to 27 Canadian, 42 U.S. and 84 international destinations.
We're a 2-hour flight from major U.S. centres such as New York, Washington, Atlanta and Chicago. |
| 7. |
Streamlined government systems
We have embraced e-government, launched a comprehensive tax reform program and are rationalizing our regulatory system. Our goal is to reduce the regulatory burden on business by 25% within two years.
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| 8. |
Competitive business costs
Aerospace manufacturing costs are lower in Canada than in France, the U.K., the Netherlands, Italy, Germany or Japan according to a comprehensive comparison of international business costs by KPMG that was released in 2010.
According to the same study, Toronto, Ontario is a lower cost location for aerospace manufacturing than many large aerospace clusters in the US, including Atlanta, Seattle, Dallas, Phoenix and Wichita.
Plus, in Ontario, more costs qualify for R&D tax incentives, which can further lower your costs:
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Ontario |
United States |
| Wages and salaries |
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√ |
| Capital equipment |
√ |
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| Materials |
√ |
√ |
| Overhead |
√ |
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| Contract expenses |
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65% - 75% | |
| 9. |
NAFTA hub for manufacturing
Ontario is part of the US$16 trillion+ NAFTA marketplace. Our companies enjoy secure access to U.S. and Mexican markets, including government procurement programs, through the North American Free Trade Agreement.
Special trade agreements – defence development and production sharing agreements – and specific exemptions under U.S. International Traffic in Arms Regulation (ITAR) provide access to U.S. military projects. |
| 10. |
Top-ranked location for investment
Canada ranks #1 in the G7 as the best place to invest and do business through to 2013. |
