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September 24, 2020
2020-2309

British Columbia announces tax incentives as part of its economic recovery plan

The Government of British Columbia (BC) released on September 17, Stronger BC for Everyone: BC's Economic Recovery Plan, outlining a number of measures to address the economic impact of COVID-19. For businesses, the plan includes two new tax initiatives:

  • Rebate of 100% Provincial Sales Tax (PST) paid by eligible businesses between September 17, 2020 and September 30, 2021 on select machinery and equipment
  • Employment incentive in the form of a 15% refundable tax credit for eligible employers who create new jobs or increase their payroll for existing low- or medium-income employees during the last quarter of 2020

The BC legislative assembly has been dissolved pending the snap provincial election on October 24, and no bill has yet been introduced to implement the proposed tax incentives.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Full text of Tax Alert

 

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