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British Columbia Tax Incentive and Rebate Programs

 

The provincial government has announced the following tax incentive and rebate programs:

 

BC Increased Employment Incentive

 

The Government of BC had previously announced a one-time tax credit of 15% for employers that increased their total eligible remuneration for eligible employees. This applies where the payroll increased in Q4 (October 1 – December 31, 2020) as compared to Q3 (July 1 – September 30, 2020).

 

Eligible employers consist of corporations, individuals, partnerships, and charities that have permanent establishments in BC. Eligible remuneration cannot exceed a weekly maximum of $1,129 per week. The incentive does not impact or reduce other wage subsidy programs (CEWS, tax credits, etc.).

 

The application deadline is December 31, 2021.

 

For more information and to apply, please visit: https://www2.gov.bc.ca/gov/content/covid-19/economic-recovery/increased-employment-incentive

 

 

BC PST Rebate on Select Machinery and Equipment

 

The Government of BC had also previously announced that eligible corporations can apply for a rebate of the PST paid on certain qualifying machinery and equipment that has been purchased between September 17, 2020 and September 30, 2021.

 

Eligible machinery and equipment are those that qualify for Capital Cost Allowance (CCA) according to the Income Tax Act for CCA classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 54, and 55 unless specifically excluded. Examples of qualifying machinery and equipment include: furniture and equipment, computer equipment and software, and machines and equipment. Some notable exceptions include all automobiles and vehicles unless they are zero emission vehicles.

 

Both PST paid on purchases and on capital lease payments (for payments during the period) qualify. If you have a capital lease, consideration should be given to convert this into a purchase/finance contract to qualify for the PST rebate on the full amount.

 

You can apply in two parts: one for the period from September 17, 2020 to March 31, 2021, and the second from April 1 to September 30, 2021. The application deadline is March 31, 2022.

 

For more information and to apply, please visit: https://www2.gov.bc.ca/gov/content/taxes/sales-taxes/pst/rebate-machinery-equipment