In his first Budget as Finance Minister, Eric Girard has increased spending by 5% but still has tabled a Budget with a surplus of $2.5 billion. Although there are no tax reductions, there are some tax related points of interest.
The tax credit for experienced workers will have a new name – The tax credit for career extension. The age for eligibility will be lowered to 60 effective for 2019. The 15% credit will be available on $10,000 ($11,000 for 65 and over) of work income in excess of $5,000.
A gradual elimination of the additional contribution or surcharge for childcare over four years, starting in 2019. Currently when a family’s income exceeds $52,220, there is an additional amount charged on the personal tax return.
A standardization of school taxes across the province starting with the 2019-2020 tax year, with full implementation by July 2021.
Extension of the rebates for the purchase of new electric vehicles through March of 2021 and a broadening of the program to include used all-electric vehicles. Rebates on eligible vehicles with a MSRP over $60,000 will be eliminated however after March 2020.
Business and Corporate Taxes
Introduction of a refundable tax credit for the retention of experienced workers. The credit could be as much as $1,250 for each worker aged 60 to 64 and as much as $1,875 for each worker 65 and over.
The refundable credit for restaurants and hotels will be modified to include paid days of leave to fulfill family obligations or for health reasons. These changes will bring the credit calculation in line with the changes in the Act respecting labour standards.
If you would like to discuss any of these measures in further detail, please give us a call.