New Brunswick - 2009 Budget Synopsis

The 2009 NB budget was tabled March 17, 2009.

Personal Brackets and Rates

The budget introduced a plan to change from four provincial tax brackets to two by 2012 with rates of 9% for income below $37,893 and 12% for income above $37,873.

For 2009 the provincial rates are reduced as shown in the following table:

The phase-out rate for the low-income tax reduction is also reduced from 5% to 4% for 2009 and will be reduced to 3% for 2010 and subsequent years.

NB Tuition Rebate

The benefits available under the NB Tuition Rebate program will be doubled beginning in 2009. The annual limit will be increased from $2,000 to $4,000 and the lifetime limit will be increased from $10,000 to $20,000.

Low-Income Seniors' Benefit

The low-income seniors benefit will increase from $200 to $300 for 2009 and to $400 for 2010.

NB Labour-Sponsored Venture Capital Tax Credit

For shares purchased after March 17, 2009, the maximum qualifying investment will increase from $5,000 to $10,000 and the credit rate will be increased from 15% to 20%

NB Small Business Investor Tax Credit

For investments made after March 17, 2009, the annual maximum investment eligible for the credit will increase from $80,000 to $250,000.

Corporate Tax Rates

The general corporate income tax rate will be reduced from 13% to 12% effective July 1, 2009 and to 11% effective July 1, 2010, 10% effective July 1, 2011 and 8% effective July 1, 2012.

The small business limit will be increased from $400,000 to $500,000, effective January 1, 2009.