Newfoundland and Labrador - 2009 Budget
The 2009 Newfoundland and Labrador budget was delivered on March 26, 2009.
Low income earners and small businesses were the main beneficiaries of the NL Budget released for 2009.
Low-Income Reduction Program
The budget announced income threshold amounts under the Low-Income Reduction program, introduced in 2005, has been increased for both individuals and families. For individuals the income threshold was increased to $15,911 and for families the threshold increased to $26,625.
Dividend Tax Credit
The dividend tax credit rate on eligible dividends was increased to 9.75% from 6.65% to keep the rate in line with that of other provinces.
LSVCC
Effective April 1, 2009, the provincial tax credit rate for an investment in a registered LSVCC will be increased from 15% to 20% of the amount invested, subject to a maximum annual investment limit of $10,000 (previous limit $5,000). This would be in addition to the 15% Federal income tax credit.
Small Business Threshold and Rate
Effective January 1, 2009 the small business threshold has been increased to $500,000 from $400,000, and the small business tax rate is 5% to this limit.
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