The Fall Federal Economic & Fiscal Update Includes New and Expanded Incentive Programs
The Deputy Prime Minister and Minister of Finance, Chrystia Freeland, delivered the federal government’s fall Economic and Fiscal Update on Tuesday, December 14, 2021. In addition to the update on the government’s finances and the economic outlook, the Minister also announced increases to several existing grant programs, and as well introduced several new incentives for businesses, communities, and individuals.
- An additional $70M over three years (in addition to the existing $150M) for improvements in ventilation in public and community buildings through the Covid Resilience Stream of Investing in Canada Infrastructure Program
- An additional $30M over three years for the Community Healthy Communities Initiative to support communities adapting public spaces for social distancing and outdoor gatherings
- A new $60M Canada Performing Arts Workers Resilience Fund administered by Heritage Canada in 2022-23 to fund and assist live performance workers through new and enhanced sector led initiatives
- A new 25% refundable Small Business Air Quality Improvement Tax Credit on eligible purchases made by small business for improvements to air quality. The credit will apply to purchases up to $10K per location to $50K maximum from September 2021 to December 31, 2022, for upgrades of mechanical heating, ventilation, and air conditioning (HVAC) systems and the purchase of standalone devices designed to filter air using high efficiency particulate air (HEPA) filters
- Support of $100M for farmers and $200M for medium and small businesses by giving back proceeds of carbon tax in jurisdictions where it applies (Alberta, Saskatchewan, Manitoba, and Ontario) with farmers eligible to receive this support from a refundable tax credit that will be available for 2021 and 2022 and with details around the support for medium and small business to be released in the 2022 Federal Budget, and
- An increase in the flat rate simplified Home Office Expense Tax Deduction from $400 to $500.
The update also highlighted changes to Covid support measures announced earlier in the fall including the Canada Recovery Caregiver Benefit, the Canada Lockdown Benefit, the Tourism and Hospitality Recovery Program, the Hardest Hit Recovery Program, and the Local Lockdown Program. A number of these programs were pending the passage of legislation currently before Parliament.
The Finance Minister also announced an extension of the Highly Affected Sector Credit Availability Program to March 31, 2022. This program was to expire on December 31st.
Further information on the fall Economic and Fiscal Update can be found at: Economic and Fiscal Update 2021 (budget.gc.ca)