What’s In The Big April 30 Tax Bill – Register by May 15 to Decipher What’s New

Last week , on the tax filing deadline of April 30, 2024, the Federal Government tabled a 663-page Notice of Ways and Means Motion to introduce many of the provisions of the April 16 Federal Budget.   Included in the Bill, the Budget Implementation Act, 2024, No. 1 were the following provisions; check out how they impact filing at the virtual CE Savvy Summit on May 22 – earn 15 CE Credits, too :

• The $60,000 RRSP Home Buyers’ Plan – maximum withdrawals for a first time home buyer from their RRSP on a tax free basis to be increased from the previous maximum of $35,000.  A temporary provision adds three years to the grace period before which repayments to an RRSP are required.  Missed payments must be added to income. 
• Denial of Tax Deductions on Non-Compliant Short-Term Rentals. Income must of course be reported.
• Doubling of the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit from $3,000 to $6,000.
• Enhanced Canadian Journalism Labour Tax Credit.  The annual labour cost limit is increasing from $55,000 to $85,000 per employee, and temporarily increasing the tax credit rate from 25 per cent to 35 per cent.
• Delayed Launch of the Canada Disability Benefit.  Previously slated to begin in 2024, the payments are not proposed to begin in July 2025, which will be disappointing to disabled people and their families.
• Auto – Enrollment into the RESP-Canada Learning Bond will be introduced.
• The Canada Student Loan Forgiveness program. Extended to pharmacists, dentists, dental hygienists, midwives, early childhood educators, teachers, social workers, personal support workers, physiotherapists, and psychologists who choose to work in rural and remote communities, in addition to doctors and nurses.
• Extension of the Ban to prohibit foreign buyers of Canadian homes,  until January 1, 2027.
• Two new investment tax credits. The 30 per cent Clean Technology Manufacturing investment tax credit; and, the up to 40 per cent Clean Hydrogen investment tax credit.
• Launching the Canada Carbon Rebate for Small Businesses.  Other changes:
  • Extending the 15 per cent Mineral Exploration Tax Credit for one year.
  • Advancing Employee Ownership Trusts
  • Implementing a 15 per cent Global Minimum Tax.

What about the Capital Gains Increases?  Uncertainty has not been quelled around the significant tax planning required around the capital gains inclusion rate increase - rising from 50% to 66 2/3%. The numbers will tell that story!  Join us on May 22 for a comprehensive virtual course on investment, retirement, trust and estate planning at the CE Savvy Summit.  Register by May 15 for early registration savings.