Global Cost Advantage
Bluewater Energy Park steam and electrical cost savings combined with the favourable cost of doing business in Ontario add up to a distinct global business advantage. A comprehensive study of international business costs by KPMG in 2006 reported that Canada's costs are the most competitive of the G7 countries (U.S., U.K., France, Germany, Italy, Japan and Canada).
Ontario's combined (provincial and federal) general corporate income tax rate is almost 4 percentage points below the U.S. average and our payroll taxes are the lowest of the G7 nations. And employee health care benefits cost Ontario manufacturers about half as much as their U.S. counterparts - 6.8% versus 13.2% of wages. In Ontario, most services such as doctor's fees, tests and hospital stays are paid through the public health system. Ontario innovation costs are low and R&D talent is plentiful in the region around the Bluewater Energy Park. More industrial and university-based R&D is performed in Ontario than anywhere else in Canada. Leading-edge research is conducted in virtually every area of IT, advanced manufacturing and life sciences. We have incubators, research parks and technology transfer offices within just a few minutes of the Park entrance. The Ontario government has committed close to $1.4 billion over four years to support research and commercialization at our universities, colleges, hospitals and research institutes.
And the Ontario R&D tax incentive program is one of the most generous in the world. When tax credits are factored in, the after-tax cost of $100 in R&D spending can be reduced to less than $41.