No changes were made to corporate tax rates. The combined Federal and British Columbia corporate tax rate for the first $500,0000 of active business income remains at 11% for 2019 and years going forward. Income over $500,000 remains taxed at 27%.
- Capital Gains Inclusion Rate
No changes were made to the capital gains inclusion rate.
- Accelerated Capital Cost Allowance (CCA)
The budget confirms the previously announced accelerated CCA initiatives. Certain manufacturing and processing machinery and equipment, and clean energy equipment, acquired after November 20, 2018 is 100% deductible in the year of acquisition.
The budget introduces a new temporary enhanced CCA rate of 100% for qualifying zero-emission vehicles acquired on or after March 19, 2019. Qualifying vehicles will include electric battery, plug-in hybrid or hydrogen fuel cell vehicles, including light-medium and heavy-duty vehicles purchased by a business. The 100% deduction will be available for vehicles purchased between March 19, 2019 and January 1, 2024.
- Scientific Research and Experimental Development Program (SR&ED)
The use of taxable income as a factor in determining the amount of SR&ED credits is proposed to be eliminated. This will allow small Canadian Controlled Private Corporations to potentially benefit from the enhanced refundable SR&ED credit regardless of their taxable income.