The BC government introduced its economic recovery plan, which provides the following incentives for businesses and professionals.
Here is a summary.
- BC PST Rebate on Machinery & Equipment Effective September 17, 2020, eligible businesses will receive a 100% PST rebate on select M&E purchases. This program will run for one year, ending on September 30, 2021Items covered by the CCA classes eligible for the rebate include, but are not limited to: most machinery, equipment, appliances, tools and furniture, computer hardware and software, etc.
- Increased Employment Incentive (IEI)
- Refundable tax credit based on an employer’s payroll;
- Available to employers who increase their employment of low- to middle-income employees in the last quarter of 2020 and to employers who retain employees they hired in August and September
- The IEI will go to practices who hire back employees or who restore work hours/wages that were reduced as a result of COVID-19
- Benefit is also available to practices that increase employment even if they may not have been negatively impacted by COVID-19
- The credit will be calculated as 15% of the increase in eligible salaries and wages in the fourth quarter of 2020 (October – December) compared to the previous quarter (July – September)
- Eligible salaries and wages include remuneration up to $1,129.33 per week per employee
The application period for the credit will begin in March 2021.
BC Small & Medium Business Recovery Grant
Eligible businesses include those with between 2 and 149 employees that have seen a COVID-related revenue reduction of at least 70% and continue to have revenues below 50% of pre-COVID levels
- One time grant amounts ranging from $10,000 to a maximum of $30,000
Feel free to consult with us on which incentives might apply to your practice.
