ON MARCH 19, 2019 THE HONOURABLE BILL MORNEAU, MINISTER OF FINANCE, PRESENTED THE 2019 FEDERAL BUDGET, “INVESTING IN THE MIDDLE CLASS”, TO THE HOUSE OF COMMONS.
Election year budgets often include various tax credits & enhancements aimed at specific groups of voters. This budget is no different with tax changes aimed at: individuals & companies looking at zero emission vehicles, farmers & fishers transitioning their businesses to the next generation, and those trying to enter the housing market for the first time.
Some highlights include:
A. Personal Income Tax
- Enhancements for first-time home buyers, including larger RRSP withdrawals and shared equity mortgages through CMHC.
- Introduction of the $250 per year refundable Canada Training Credit.
- Introduction of additional types of investments that can be made in registered tax-sheltered plans.
- $5,000 rebate for the purchase of electric or hydrogen fuel cell vehicles.
- Interest relief on student loans.
B. Business Income Tax
- Full immediate write-off for certain zero-emission vehicles.
- Further protection for farmers and fishers from the rules which prevent the multiplication of the small business deduction.
- Increased ability of private businesses with income greater than $500,000 to claim the 35% refundable Scientific Research & Experimental Development (SRED) investment tax credit.
C. Sales and Excise Tax
- GST/HST relief on human ova and in vitro embryos, and multidisciplinary health care services.
- Revisions to GST on various cannabis products.
D. Other Budget Expenditures
- Various other expenditures such as investments in rural internet and EI and CPP service delivery.
Government’s fiscal position includes the following projected surplus/deficit:
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