British Columbia's Bill 6, which includes a measure to introduce the new Clean Buildings Tax Credit, received Royal Assent on June 2, 2022. Bill 6 also includes measures to extend certain other corporate tax credits and introduces new PST requirements for marketplace facilitators, among other changes. These measures were announced in British Columbia's 2022 budget, which was delivered on February 22, 2022. In addition, British Columbia amended regulations to temporarily increase the budget for the Small Business Venture Capital Tax Credit on May 24, 2022.
The corporate income tax measures in Bill 6 are considered enacted for U.S. GAAP purposes as of June 2, 2022 (the date the bill received Royal Assent). These changes were considered substantively enacted for IFRS and Accounting Standards for Private Enterprise (ASPE) purposes on February 22, 2022 (the date the bill received first reading), as British Columbia has a majority government.
British Columbia introduced in its 2022 budget a temporary Clean Buildings Tax Credit for retrofits that improve the energy efficiency of certain prescribed buildings and multi-unit residential buildings with four or more dwellings. This credit provides a refundable tax credit of 5% of eligible expenditures made before April 1, 2025, and under a contract entered into after February 22, 2022.
Bill 6 also includes changes to corporate tax credits, including to:
- Extend the Scientific Research and Experimental Development Tax Credit to August 31, 2027 (from August 31, 2022)
- Extend training tax credits to the end of 2024 (from end of 2022)
- Extend the Shipbuilding and Ship Repair Industry Tax Credit to the end of 2024 (from end of 2022).
Bill 6 also includes several other tax changes, including introducing new PST registration, collection and remittance obligations for marketplace facilitators, effective July 1, 2022.
British Columbia also amended regulations to temporarily increase the budget for the Small Business Venture Capital Tax Credit (personal and corporate) to $41 million (from $38.5 million), effective for the 2022 to 2024 years, with this increase allocated to investments in clean technology businesses.
For more information, contact your KPMG adviser.
Information is current to June 6, 2022. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500