The BC government released the 2024 Budget on February 22, 2024. The budget did not include any changes to the B.C. corporate or personal income tax rates, which remain as follows and as of January 1, 2024:

Some of the relevant highlights are noted below:

Corporate and Personal Income Tax:

• The budget extends the Training Tax Credit to the end of 2027 for employers and to the end of 2025 for individuals.
• Effective starting February 23, 2024, oil and gas expenditures will no longer qualify for the Mining Exploration Tax Credit.
• The budget amends the Interactive Digital Media Tax Credit to add gambling with currency to the list of ineligible products.
• The budget introduces a new income tax targeting home flipping activity in British Columbia. Effective for residential real estate sold on or after January 1, 2025, the tax will impose a 20% tax on properties sold within 365 days of purchase, and will incrementally decline to zero between 366 and 730 days. Exemptions will apply for certain life circumstances that were motivating factors for the sale, such as divorce, separation, death, disability, illness, relocation for work, and insolvency.
• The budget introduces the B.C. Family Benefit Bonus. This measure provides a 25% increase to the annual benefit amount and a 25% increase to the income threshold upon which the B.C. Family Benefit is calculated. This measure is effective from July 1, 2024 and will be removed following the end of the 12-month period.
• Increase of the annual Climate Action Tax Credit to $504 for an adult, $252 for a spouse or common-law partner, and $126 per child, effective July 1, 2024. The budget also increases the income threshold from $39,115 to $41,071 for individuals, and from $50,170 to $57,288 for families, at which point the tax credit reduction begins.

Provincial Sales Tax:

• The budget reduces the ability to claim PST refunds where persons, acting as end purchaser of goods, intend to export and re-sell the goods outside of British Columbia. This change is effective on July 1, 2024.
• The budget clarifies that projects using solar energy, wind, tides, air, or water for the purpose of manufacturing clean energy will qualify for the production and equipment exemption, effective February 23, 2024.

Other Tax Changes:

• The Employer Health Tax full exemption has increased from $500,000 to $1 million. For employers with B.C. renumeration between $1 million and $1.5 million, the tax rate has increased from 2.925% to 5.850%. The tax rate for businesses with payrolls above $1.5M are subject to the same 1.95% rate as before. The changes will be effective starting from January 1, 2024. 
• The budget increases the fair market value ceiling of qualifying properties for the Property Transfer Tax exemption from $500,000 to $835,000 for first-time home buyers, effective April 1, 2024. For qualifying real estate acquisition with a fair market value of between $835,000 and $860,000, a partial exemption is available. The budget also increases the fair market value threshold for a full exemption for qualifying newly built homes from $750,000 to $1.1 million, effective April 1, 2024. The phase out range starts at $1,150,000, with a complete reduction at $1.15 million for qualifying purchases.
• The budget extends the reporting requirement of the Speculation and Vacancy Tax to persons who possess a residential property under a registered lease, effective January 1, 2024. Registered leaseholders will be required to declare for purposes of the Speculation and Vacancy Tax in 2025.

Full details of the Budget can be viewed here.

For more information on how any of the proposed changes may impact your business or you, contact your Rise Advisor.

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