On March 25, 2021, Labi Kousoulis, Minister of Finance and Treasury Board, presented Nova Scotia’s 2021–22 budget. Continuing the trend across Canada, this year’s budget provides for increased spending on healthcare and long-term care, including various measures related to the COVID-19 pandemic.
The budget also contains a broad array of measures designed to stimulate economic recovery, address climate change, improve education, raise the level of provincial income assistance, create affordable housing, support the hospitality and tourism industry, and promote equity and inclusiveness. With an estimated deficit approaching $585 million, the province doesn’t expect to return to a balanced budget until 2024–25.
No new taxes or increases to existing taxes or fees are included in the budget. However, a few significant tax measures have been extended.
Income Tax Measures
Equity Tax Credit Extended
The province has decided to extend the Equity Tax Credit for investments in Community Economic Development Investment Funds for a 10-year period. This personal income tax credit provides an individual with a 35% credit for investments up to $50,000 in eligible shares in a taxation year. However, the shares must be held for a five-year period. Rollover credits at reduced rates are also available when shares are held for an additional five or 10 years. The tax credit was previously set to expire next February.
Property Tax Measures
The budget documents indicate that the Small Business Real Property Tax Rebate Program will be extended, and Part 2 of the Tourism Accommodations Real Property Tax Rebate Program will be implemented. Both property tax rebate programs were originally introduced to help businesses that have been disproportionately affected by the pandemic.
Further information on the 2021–22 Nova Scotia budget may be found on the province’s website at: https://novascotia.ca/budget
If you have questions about how any of the changes proposed in recent Canadian provincial budgets might impact your organization, please do not hesitate to call the Ryan TaxDirect® line at 1.800.667.1600.