AEM Responds to the 2026 Ontario Economic Outlook and Fiscal Review

OTTAWA, ON – In response to the measures announced in the Government of Ontario's 2026 Economic Outlook and Fiscal Review, Association of Equipment Manufacturers (AEM) Senior Vice President of Government and Industry Relations Kip Eideberg released the following statement: 

"AEM welcomes measures outlined in Ontario’s 2026 Economic Outlook and Fiscal Review to support business investment and strengthen critical infrastructure amid continued economic uncertainty and rising costs for manufacturers. 

"Ontario’s new income tax relief measures are a decisive and necessary step that will give equipment manufacturers and their suppliers the ability to immediately deduct 100 per cent of the cost of eligible investments, including machinery, equipment, and technology, helping them remain competitive. These measures follow a similar expansion of capital cost allowances by the federal government that were introduced in the 2025 federal government and would equal more than $8 billion in relief over the next five years at the provincial level. 

"AEM also strongly supports the decision to parallel recent federal enhancements to the Scientific Research and Experimental Development tax incentive program by restoring capital expenditures as eligible expenditures under the Ontario Research and Development Tax Credit and the Ontario Innovation Tax Credit. The ability to immediately claim capital expenditures on equipment, certain labour costs and support R&D activity are critical incentives to foster continued innovation and commercial growth. 

"AEM is also encouraged by the federal cost matching of Ontario’s up to $1 billion investment in essential road infrastructure. This funding will support critical mineral development in the Ring of Fire and advance road infrastructure vital to Ontario’s economy and its growing position as a central hub of the global mining industry.  

“The growing alignment between federal and provincial measures to support manufacturers is encouraging. As trade pressures evolve, Ontario should continue working with Ottawa to ensure that pro-growth and tariff-relief programs are timely, accessible, and responsive to manufacturers’ priorities. AEM looks forward to working with the Ontario government to ensure these measures deliver results for equipment manufacturers across the province."