HALIFAX (CP) -- Premier Darrell Dexter has formally announced a new tax credit for manufacturers and processors, a pledge the NDP made during the recent election campaign.

Dexter made the announcement today at a breakfast meeting of business leaders.

The initiative offers a 10 percent credit to businesses in the manufacturing and processing sector that are investing in machinery and equipment.

Dexter says the government is still working on the application process but the program will begin in January.

The tax credit is expected to cost the province about $25 million.

Dorothy Rice, head of the Nova Scotia wing of the Canadian Manufacturers and Exporters Association, says the credit will help businesses boost productivity and create jobs.