On February 19th, 2019, British Columbia Finance Minister, Carole James, announced the 2019 British Columbia Budget. No changes were made to the existing personal and corporate tax rates. Highlights of the Budget are summarized below.
Income Tax Measures
B.C. Child Opportunity Benefit Announced
Effective October 1, 2020, the new B.C. Child Opportunity Benefit will be combined with the early childhood tax benefit into a single new benefit, and will support families with children under the age of 18. The early childhood tax benefit previously only applied to children under the age of 6, and this new refundable tax credit could provide families with the following benefits.
Up to $1,600 per year for families with one child
Up to $2,600 per year for families with two children
Up to $3,400 per year for families with three children
The new benefit is reduced at a rate of 4% of family net income over $25,000 until it is equivalent to $700 for the first child, $680 for the second child, and $660 for each subsequent child under the age of 18. The new benefit is phased out at a rate of 4% of family net income over $80,000. The Province will index both the $25,000 and $80,000 thresholds to inflation in subsequent years. The net family income level for the benefit to completely phase out is $97,500 for a family with one child and $114,500 of family net income for a family with two children.
Climate Action Tax Credit Enhanced
The existing Climate Action Tax Credit has been enhanced with following changes:
Single-parent families will continue to receive the adult amount for the first child in the family.
Small Business Venture Capital Tax Credit Program Enhanced
The Budget proposes to enhance the Small Business Venture Capital Tax Credit program with several changes, which are listed below.
Training Tax Credits Extended
The Training Tax Credits for both employees and apprentices are extended for one year to the end of 2019.
Farmers’ Food Donation Tax Credit Extended
The Farmers’ Food Donation Tax Credit is extended for one year to the end of 2020.
Shipbuilding and Ship Repair Industry Tax Credit Extended
The Shipbuilding and Ship Repair Industry Tax Credit is extended for three years to the end of 2022.
Pension Tax Credit Expanded
Effective for 2015 and subsequent tax years, the Pension Tax Credit is expanded to apply in respect of certain retirement income security benefits paid to veterans.
Calculation of Tax on Split Income Adjusted
Effective for 2018 and subsequent tax years, the Disability Tax Credit can be applied in calculating the tax on split income.
Calculation of Medical Expense Tax Credit Adjusted
Effective for 2018 and subsequent tax years, split income can be included in the income threshold for calculating the Medical Expense Tax Credit.
Mining Flow-Through Share Tax Credit
The Mining Flow-Through Share Tax Credit is made permanent, effective January 1, 2019
Mining Exploration Tax Credit
The Mining Exploration Tax Credit is made permanent upon royal assent of enacting legislation.
Provincial Sales Tax Measures
Designation of Clarify Tax Collection, Remittance and Reporting Obligations for Sales and Leases Involving Agency Authorized
Effective on royal assent, the Provincial Sales Tax Act is amended to authorize a designation to streamline tax collection, reporting and remittance requirements for sales or leases involving agency. The following changes are included in the Budget.
For more information on the 2019 British Columbia Budget, please visit the Government of British Columbia website: