- News Release 2009-112 -

Archived - Backgrounder

The Government has now committed 97 per cent of the 2009–10 stimulus funding in the Economic Action Plan. Funds have been committed to more than 12,000 projects across the country, of which about 8,000 have begun. 

Projects committed include:

• Over 6,700 provincial, territorial and municipal infrastructure projects.
• 1,150 projects to repair and renovate federal buildings across the country.
• 536 projects to improve infrastructure at colleges and universities.
• About 1,800 social housing projects.

Tax Relief for Individuals and Families

Canada's Economic Action Plan is providing tax relief of more than $20 billion over 2008–09 and the next five fiscal years.

• Canadians have been seeing the benefits of income tax reductions on their pay stubs since April 2009.
• Increased child benefits started to flow in July 2009, providing up to $436 a year for a family with two children.
• The temporary Home Renovation Tax Credit will provide up to $1,350 in tax assistance per family in support of home renovations and improvements.
• Low-income working Canadians are expected to receive benefits of up to $925 per year to single individuals and up to $1,680 per year to couples and single parents under the enhanced Working Income Tax Benefit when they file their 2009 tax returns.

Tax Relief for Canadian Businesses

The Economic Action Plan builds on the Government's record of creating a tax advantage for Canadian businesses. Key measures include:

• Extension of the temporary accelerated capital cost allowance rate to help manufacturers and processors invest in new machinery and equipment.
• An increase to $500,000 in the amount of small business income eligible for the reduced federal income tax rate.
• Extension of the temporary Mineral Exploration Tax Credit for an additional year to support mineral exploration activity.

Helping the Unemployed

The Economic Action Plan provides significant support for Canadian workers who have lost their jobs or may face layoffs.

• The Employment Insurance (EI) program is providing an additional $5.8 billion in EI benefits this year.
• More than 395,000 workers are receiving up to an additional $2,235 in benefits.
• Enhanced EI work-sharing agreements are now supporting more than 167,000 individuals.
• Extended EI benefits of up to 20 weeks are available for long-tenured workers through the Career Transition Assistance initiative for longer-term training.
• The Government introduced the Fairness for the Self-Employed Act, which would extend EI special benefits, including maternity, parental, sickness and compassionate care benefits, to the self-employed.

Training and EI Support for More Canadian Workers

 Training measures are also in place to support Canadian workers and prepare them for the future.

• More than 90,000 Canadians are receiving training through funds flowing to provinces and territories.
• Investments are flowing for 58 projects aimed at supporting older workers.
• Almost 10,000 of the $2,000 Apprenticeship Completion Grants have been awarded.
• Skills development and employment opportunities for Aboriginal Canadians have been identified across the country.

Building Infrastructure

Investing in infrastructure helps create and preserve jobs. Since the release of Canada's Economic Action Plan, the Government has committed more than $9 billion in federal funding towards over 6,700 provincial, territorial and municipal infrastructure projects worth over $25.8 billion.

Accelerate Existing Infrastructure Funding

 Canada's Economic Action Plan is taking action to speed up spending from the Building Canada plan. More than $2.8 billion has been committed to 96 large priority projects since January 2009.

New Provincial, Territorial and Municipal Infrastructure Initiatives

The Government has worked with its partners to identify shovel-ready projects and get funds flowing. To date, over $3.6 billion of the $4-billion Infrastructure Stimulus Fund has been committed to more than 3,200 projects.

$170 million in Recreational Infrastructure Canada funding has also been committed to build and refurbish recreational facilities across the country in 2009–10.

First Nations Infrastructure

$233 million in funding for infrastructure in First Nations has been committed for 2009–10. Projects for schools, safe water systems and health services infrastructure have begun.

Federal Infrastructure

Canada's Economic Action Plan is also supporting jobs by making investments in federal infrastructure, with 92 per cent of spending committed.

Supporting Home Ownership

The Economic Action Plan is helping Canadians invest in their homes by providing:

• Up to $1,350 in tax relief on eligible home renovations through the temporary Home Renovation Tax Credit.
• Up to $750 in tax relief on the purchase of a first home through the First-Time Home Buyers' Tax Credit.
• Greater access to Registered Retirement Savings Plan savings to purchase or build a first home through an increased $25,000 Home Buyers' Plan withdrawal limit.
• $300  million for the ecoENERGY Retrofit – Homes program. The program has experienced unprecedented demand since the Economic Action Plan was announced and has met its targets. In response, the Government is proposing to allocate an additional $205 million from the Clean Energy Fund to finance up to an additional 120,000 retrofits for Canadian homeowners.

Investments in Social Housing

Canada's Economic Action Plan is creating jobs through social housing construction and renovation.

• Agreements have been reached to deliver $650 million for renovation and retrofits of social housing, housing for low-income seniors, and the housing needs of persons with disabilities. This funding is being matched by the provinces and territories. More than 1,700 projects have begun.
• Projects have begun to build and renovate social housing in 300 First Nations communities.

Creating the Economy of Tomorrow

Canada's Economic Action Plan invests nearly $5 billion in science and technology initiatives.

• $2 billion has been committed for college and university infrastructure across Canada in 2009–10, with 372 projects having already begun.
• $36 million for Arctic research infrastructure has been committed.
• Over 90 per cent of the 2009–10 funding set aside to address deferred maintenance for about 70 projects at federal laboratories and scientific facilities across Canada has been committed.

Supporting Industries and Communities

Canada's Economic Action Plan provides approximately $14 billion to support adjustment and help create and protect jobs across Canada, including:

• About $460 million has been committed to nearly 1,000 projects under the Community Adjustment Fund.
• Over 60 per cent of the $206 million for the Federal Economic Development Agency for Southern Ontario in 2009–10 is already committed.
• The $100 million for the National Research Council's Industrial Research Assistance Program in 2009–10 to support innovative small and medium-sized businesses has been fully committed. 
• Over $44 million has been provided to 56 major Canadian events and festivals across Canada.

Improving Access to Financing

Strong financial conditions are vital for a sustained recovery in Canada and elsewhere in the world.

The Government has provided $135 billion in broad-based financing support to improve access to financing for Canadian households and businesses, all of it on a commercial basis to protect the taxpayer.

Average effective interest rates paid by households and businesses have fallen significantly below their level last year.

For more information on Canada's Economic Action Plan, visit www.actionplan.gc.ca or call
1-800-O-Canada (1-800-622-6232)
1-800-926-9105 (TTY)

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