OTTAWA—The federal budget released June 6 formalized the extension of the Accelerated Capital Cost Allowance (ACCA), which is good news for the industry, said the Canadian Printing Industries Association (CPIA).

According to a release today from the CPIA, the budget calls for the ACCA to be extended until Dec. 31, 2013, "and could save Canadian manufacturers some $650 million over the next five years if it were to extend that long." The CPIA said it will continue its push to make the ACCA permanent.

The ACCA provides an accelerated rate of write-off for certain capital expenditures on manufacturing equipment.

"This is an important provision allowing printers to properly reflect the realistic lifespan of their equipment and we are very pleased that it will continue for the next two years," said CPIA president Bob Elliott.