New Brunswick Provincial Budget

The New Brunswick provincial budget was delivered on February 4. The budget reduces the deficit but a balanced budget is not expected until 2017. The budget promised a 3% increase in social assistance rates beginning in April.

Small Business Investor Tax Credit

The only income tax change announced was to the Small Business Investor Tax Credit. The current credit of 15% of eligible investments of up to $500,000 will become available to corporations and trusts effective for the 2014 taxation year. The range of eligible investments will also be expanded to include a registered community economic development fund.

Other Tax Changes

Like most provinces, provincial brackets and most personal amounts are indexed annually. The indexation factor for New Brunswick for 2014 is 1.009 (i.e. an increase of 0.9%). The basic personal amount in New Brunswick is $9,472 for 2014 – the largest in the Atlantic provinces but still below average for most provinces.

The change in the gross-up for small business dividends announced in the 2013 federal budget means a consequential increase in the provincial tax on such dividends because the NB dividend tax credit is tied to the federal dividend tax credit. New Brunswick has not announced any changes to their dividend tax credit.