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Archived - Tax Expenditures and Evaluations - 2005: 5
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Annex A
Provincial-Territorial and Federal Statutory Tax Rates
(Projected for 2010, %)
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| Province/Territory | General Corporate Income Tax Rate |
Manufacturing and Processing Income Tax Rate |
Capital Tax Rate |
R&D Tax Credit Rate (Current and Capital Expenditures)2 |
Applicable Federal Atlantic Investment Tax Credit |
Manufacturing and Processing Investment Tax Credit Rate |
Retail Sales Tax on Capital Goods |
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| Alberta | 11.5 | 11.5 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| British Columbia | 13.5 | 13.5 | 0.0 | 10.0 | 0.0 | 0.0 | 7.0 |
| Manitoba | 14.0 | 14.0 | 0.5 | 20.0 | 0.0 | 10.0 | 7.0 |
| New Brunswick | 13.0 | 13.0 | 0.3 | 15.0 | 10.0 | 0.0 | 0.0 |
| Newfoundland and Labrador | 14.0 | 5.0 | 0.0 | 15.0 | 10.0 | 0.0 | 0.0 |
| Northwest Territories | 14.0 | 14.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Nova Scotia | 16.0 | 16.0 | 0.2 | 15.0 | 10.0 | 0.0 | 0.0 |
| Nunavut | 12.0 | 12.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Ontario | 14.0 | 12.0 | 0.15 | 0.0 | 0.0 | 0.0 | 8.0 |
| Prince Edward Island | 16.0 | 16.0 | 0.0 | 35.0 | 10.0 | 10.0 | 10.0 |
| Quebec | 11.9 | 11.9 | 0.3 | 17.53 | 0.05 | 0.0 | 0.06 |
| Saskatchewan | 17.0 | 10.0 | 0.6 | 15.0 | 0.0 | 7.0 | 7.0 |
| Yukon | 15.0 | 2.5 | 0.0 | 15.0 | 0.0 | 0.0 | 0.0 |
| Provincial-Territorial Weighted Average |
13.2 | 12.2 | 0.2 | 4.5 | 0.6 | 0.4 | 4.57 |
| Federal | 19.01 | 19.01 | 0.0 | 20.04 | - | - | 0.0 |
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1 As proposed in Budget 2005.2 The federal and provincial governments, except Quebec, allow immediate deductibility of R&D capital expenditures.3 Only labour expenditures are eligible for the credit.4 The federal government credit is applied to eligible expenditures less government assistance, including provincial scientific research and experimental development tax credits. The effective credit equals 20%*(1-provincial rate).5 Excludes the impact of the Atlantic investment tax credit in the Gaspé region.6 The only exceptions to the zero-tax status are road vehicles less than 3,000 kg. used by business in Quebec.7 Exemptions apply in each province for specific capital goods. The weighted average effective tax rate is 2.0% for Canada and 3.5% for the five provinces imposing retail sales taxes. |
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Annex B
US State and Federal Statutory Tax Rates (Projected for 2010, %)
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| R&D Tax Credit Rate | |||||||
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| US States | General Corporate Income Tax Rate |
Capital Tax Rate | Current and Labor Expenditures3 | Capital Expenditures | Investment Tax Credits Available4 | Retail Sales Tax on Capital Goods5 | |
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| Alabama | 6.5 | 0.0 | 0.0 | 0.0 | Yes | 4.0 | |
| Alaska | 9.4 | 0.0 | 0.0 | 0.0 | No | 0.0 | |
| Arizona | 7.0 | 0.0 | 20.0 | 0.0 | No | 5.6 | |
| Arkansas | 6.7 | 0.3 | 0.0 | 0.0 | No | 5.1 | |
| California | 8.8 | 0.0 | 15.0 | 0.0 | Yes | 6.5 | |
| Colorado | 4.6 | 0.0 | 0.0 | 0.0 | No | 2.9 | |
| Connecticut | 7.5 | 0.0 | 20.0 | 0.0 | Yes | 6.0 | |
| Delaware | 8.7 | 0.0252 | 10.0 | 0.0 | No | 0.0 | |
| District of Columbia | 10.0 | 0.0 | 0.0 | 0.0 | No | 5.8 | |
| Florida | 5.5 | 0.0 | 0.0 | 0.0 | Yes | 6.0 | |
| Georgia | 6.0 | 0.0 | 10.0 | 0.0 | Yes | 4.0 | |
| Hawaii | 6.4 | 0.0 | 20.0 | 0.0 | No | 4.0 | |
| Idaho | 7.6 | 0.0 | 5.0 | 0.0 | Yes | 5.0 | |
| Illinois | 7.3 | 0.152 | 6.5 | 0.0 | Yes | 6.3 | |
| Indiana | 8.5 | 0.0 | 10.0 | 0.0 | No | 6.0 | |
| Iowa | 12.0 | 0.0 | 6.5 | 0.0 | Yes | 5.0 | |
| Kansas | 4.1 | 0.0 | 6.5 | 0.0 | Yes | 5.3 | |
| Kentucky | 8.3 | 0.21 | 0.0 | 5.0 | No | 6.0 | |
| Louisiana | 8.0 | 0.3 | 8.0 | 0.0 | No | 4.0 | |
| Maine | 8.9 | 0.0 | 5.0 | 0.0 | No | 5.0 | |
| Maryland | 7.0 | 0.0 | 10.0 | 0.0 | No | 5.0 | |
| Massachusetts | 9.5 | 0.26 | 10.0 | 0.0 | Yes | 5.0 | |
| Michigan | 1.9 | 0.0 | 0.0 | 0.0 | Yes | 6.0 | |
| Minnesota | 9.8 | 0.0 | 2.5 | 0.0 | No | 6.5 | |
| Mississippi | 5.0 | 0.25 | 0.0 | 0.0 | No | 7.0 | |
| Missouri | 6.3 | 0.03 | 0.0 | 0.0 | No | 4.2 | |
| Montana | 6.8 | 0.0 | 5.0 | 0.0 | No | 0.0 | |
| Nebraska | 7.8 | 0.0 | 0.0 | 0.0 | No | 5.5 | |
| Nevada | 0.0 | 0.0 | 0.0 | 0.0 | No | 6.5 | |
| New Hampshire | 8.5 | 0.0 | 0.0 | 0.0 | No | 0.0 | |
| New Jersey | 9.0 | 0.0 | 10.0 | 0.0 | Yes | 6.0 | |
| New Mexico | 7.6 | 0.0 | 0.0 | 0.0 | No | 5.0 | |
| New York | 7.5 | 0.1782 | 0.0 | 0.0 | Yes | 4.3 | |
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| R&D Tax Credit Rate | |||||||
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| US States | General Corporate Income Tax Rate |
Capital Tax Rate | Current and Labor Expenditures3 | Capital Expenditures | Investment Tax Credits Available4 | Retail Sales Tax on Capital Goods5 | |
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| North Carolina | 6.9 | 0.15 | 5.0 | 0.0 | Yes | 4.5 | |
| North Dakota | 7.0 | 0.0 | 4.0 | 0.0 | No | 5.0 | |
| Ohio | 8.5 | 0.0 | 7.0 | 0.0 | No | 5.0 | |
| Oklahoma | 6.0 | 0.125 | 0.0 | 0.0 | Yes | 4.5 | |
| Oregon | 6.6 | 0.0 | 0.0 | 0.0 | No | 0.0 | |
| Pennsylvania | 10.0 | 0.0 | 10.0 | 0.0 | No | 6.0 | |
| Rhode Island | 9.0 | 0.0 | 16.9 | 0.0 | Yes | 7.0 | |
| South Carolina | 5.0 | 0.1 | 5.0 | 0.0 | No | 5.0 | |
| South Dakota | 0.0 | 0.0 | 0.0 | 0.0 | No | 4.0 | |
| Tennessee | 6.5 | 0.25 | 0.0 | 0.0 | Yes | 7.0 | |
| Texas | 4.5 | 0.0 | 5.0 | 0.0 | No | 6.3 | |
| Utah | 5.0 | 0.0 | 6.0 | 6.0 | No | 4.8 | |
| Vermont | 9.8 | 0.0 | 10.0 | 0.0 | Yes | 6.0 | |
| Virginia | 6.0 | 0.0 | 0.0 | 0.0 | No | 3.5 | |
| Washington | 0.0 | 0.0 | 0.0 | 0.0 | No | 6.5 | |
| West Virginia | 9.0 | 0.72 | 10.0 | 0.0 | Yes | 6.0 | |
| Wisconsin | 7.9 | 0.0 | 5.0 | 5.0 | No | 5.0 | |
| Wyoming | 0.0 | 0.02 | 0.0 | 0.0 | No | 4.0 | |
| State Weighted Average | 6.9 | 0.052 | 6.7 | 0.1 | - | 5.4 | |
| Federal1 | 33.4 | 0.0 | 20.0 | 0.0 | No | 0.0 | |
| Combined Statutory Rate (Including Federal Deductibility of State Taxes)6 | 38.0 | ||||||
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1 A rate reduction of 3.15% pts for manufacturing and processing industries from the general rate of 35% is effective 2009. 2 Taxable capital is defined as total equity invested instead of total assets.3 The federal and most state tax credits apply to scientific research and experimental development expenditures in excess of a firm-specific base amount.4 Excluding within-state regional development investment tax credits.5 Exemptions apply in each state for specific capital goods. The weighted average effective rate is 2.8%.6 Federal corporate taxes are deductible in Alabama, Iowa, Louisiana, Missouri and North Dakota. |
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Annex C
METRs on Tangible Assets for the 50 US States and District of Columbia (Projected for 2010, %)
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| Manufacturing | All Sectors |
Manufacturing | All Sectors |
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| East North Central | Pacific | ||||
| Illinois | 33.0 | 36.8 | Alaska | 29.7 | 29.8 |
| Indiana | 33.6 | 37.2 | California | 19.3 | 33.3 |
| Michigan | 33.8 | 37.6 | Hawaii | 35.5 | 35.5 |
| Ohio | 32.9 | 35.9 | Oregon | 28.0 | 28.1 |
| Wisconsin | 32.5 | 35.5 | Washington | 29.4 | 33.7 |
| East North Central | 33.2 | 36.5 | Pacific | 22.5 | 32.7 |
| East South Central | South Atlantic | ||||
| Alabama | 29.5 | 31.8 | Delaware | 29.4 | 29.5 |
| Kentucky | 35.7 | 38.9 | District of Columbia | 40.1 | 39.9 |
| Mississippi | 35.2 | 39.1 | Florida | 38.1 | 37.9 |
| Tennessee | 34.4 | 38.4 | Georgia | 23.0 | 29.4 |
| East South Central | 33.8 | 36.9 | Maryland | 32.0 | 35.2 |
| North Carolina | 25.2 | 31.7 | |||
| Middle Atlantic | South Carolina | 32.1 | 34.1 | ||
| New Jersey | 30.5 | 36.2 | Virginia | 30.4 | 31.9 |
| New York | 20.1 | 30.4 | West Virginia | 29.7 | 38.3 |
| Pennsylvania | 34.4 | 37.9 | South Atlantic | 29.2 | 33.0 |
| Middle Atlantic | 29.6 | 34.9 | |||
| West North Central | |||||
| Mountain | Iowa | 1.0 | 6.2 | ||
| Arizona | 32.5 | 35.9 | Kansas | 28.3 | 32.0 |
| Colorado | 29.1 | 31.2 | Minnesota | 34.4 | 38.1 |
| Idaho | 27.0 | 30.9 | Missouri | 30.7 | 33.3 |
| Montana | 28.1 | 28.2 | Nebraska | 38.7 | 38.5 |
| Nevada | 36.8 | 36.8 | North Dakota | 30.2 | 33.0 |
| New Mexico | 37.8 | 37.7 | South Dakota | 32.4 | 32.5 |
| Utah | 30.8 | 33.9 | West North Central | 28.0 | 31.7 |
| Wyoming | 27.7 | 30.7 | |||
| Mountain | 31.2 | 33.4 | West South Central | ||
| Arkansas | 35.3 | 38.2 | |||
| New England | Louisiana | 32.9 | 35.5 | ||
| Connecticut | 23.9 | 29.6 | Oklahoma | 31.9 | 33.7 |
| Maine | 33.1 | 36.2 | Texas | 31.6 | 35.6 |
| Massachusetts | 29.6 | 36.6 | West South Central | 32.3 | 35.5 |
| New Hampshire | 29.1 | 29.2 | |||
| Rhode Island | 10.2 | 31.2 | US | 30.4 | 34.5 |
| Vermont | 21.5 | 25.9 | |||
| New England | 27.5 | 33.5 | |||
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