2017 Provincial Budget Roundup: Part 2

This is the second in the Provincial Budget Roundup series. This week, we present a brief summary of the tax provisions from the western and prairie provinces:

BC (Feb 21)

• BC introduced Volunteer Firefighter/Search and Rescue tax credit for 2017
• The Education Tax Credit is eliminated for 2017 and subsequent years
• The small business corporate tax rate decreased from 2.5% to 2.0% as of April 1, 2017; this will result in a consequential reduction in the small business dividend tax credit rate
• Medical Services Premiums, which are paid separately from the tax return, will be eliminated starting in 2018 for families with income below $120,000

Alberta (Mar 16)

• The budget announced that the small business dividend tax rate will be adjusted but did not specify the rate or whether the rate will be different from the revised rates introduced in Bill 10 last year
• The capital investment tax credit was extended to 2018
• The budget did not mention the Education Tax Credit

Saskatchewan (Mar 22)

• Education and Tuition credits are eliminated for 2017 and subsequent years
• Employee Tool tax credit eliminated
• Indexation of personal amounts is suspended
• LSVCC (Labour-Sponsored Venture Capital Corporation) tax credit rate reduced from 20% to 15%
• Low-income tax credit increased by $100 per adult, plus $40 per child
• Personal tax rates will be reduced by 0.5% effective July 1, 2017, and again July 1, 2019
• The general corporate tax rate will be reduced by 0.5% effective July 1, 2017, and again July 1, 2019
• The capital tax on large corporations is being increased
• The PST rate rose from 5% to 6% effective March 23, 2017
• The PST exemptions for children’s clothing, restaurant meals and snack foods, insurance premiums, construction services, etc. was removed
• Education property taxes will increase (Referring to the portion of property taxes that goes towards education.)
• The tax exemption on bulk purchases of gasoline and diesel fuel was eliminated
• Tobacco and Alcohol taxes will increase

Manitoba (April 11)

• The Tuition Fee Income Tax Rebate will be capped at 10% of eligible tuition fees to a maximum of $500 in 2017 (this was previously $2500); it will be eliminated completely in 2018 and all unclaimed rebates will lapse
• The Tuition Fee Income Tax Rebate Advance was immediately cancelled for terms that begin after April 2017
• The Tuition Fee and Education Amounts will stay untouched in Manitoba, as will the Children’s Arts and Cultural Tax Credit and the Fitness Tax Credit; the federal government eliminated these in the March 22, 2017, budget
• The Primary Caregiver Tax Credit will be capped at $1400 starting in 2017; retroactive claims will be disallowed for years prior to 2017
• The Political Contributions Tax Credit will increase starting in the 2018 tax year; the maximum contribution will rise from $1,275 to $2,325, which computes to a maximum credit of $1000
• Indexing factors for personal amounts and tax brackets are set at 1.5%, 1.8%, 2.0% and 2.0% respectively from 2017 to 2020
• Research and Development Tax Credit was reduced for expenditures after April 11, 2017, to a rate of 15% from 20%
• The Manufacturing Investment Tax Credit was reduced from 2% to 1% on qualified property acquired after April 11, 2017
• The Corporate Capital Tax Deduction on small financial institutions was eliminated for fiscal years ending after April 30, 2017
• The Mineral Exploration Tax Credit was extended until December 31, 2020
• The Book Publishing Tax Credit was extended to December 31, 2018
• The Interactive Digital Media Tax Credit was extended to December 31, 2022
• Tax Credits that were immediately eliminated:
  • Co-operative Development Tax Credit
  • Odour Control Tax Credit
  • Nutrient Management Tax Credit
  • Riparian Tax Credit
  • Neighbourhood Alive Tax Credit
  • Data Processing Investment Tax Credit

For a detailed report on the Manitoba provincial budget see Manitoba Budget Hints at Tax Reform.

©2017 Knowledge Bureau Inc. All Rights Reserved.

Refer a Friend	Research	Calculators	Course Trials