Legislative Costing Notes - 2021-22

• Increasing the maximum number of weeks of employment insurance sickness benefits to 52 weeks from 15 weeks
  Mar 29, 2022 • LEG-2122-035-S
  Bill C-215 proposes to increase the maximum number of weeks for employment insurance sickness benefits due to a prescribed illness, injury, or quarantine to 52 weeks from 15 weeks. The extension is assumed to come into effect in summer 2022. The PBO estimates the net cost of the proposal to be $1,092 million in 2022-2023 which grows to $1,932 million in 2026-2027.
• Establishing the position of the Parliamentary Visual Artist Laureate
  Mar 3, 2022 • LEG-2122-034-M
  A parliamentarian requested that the Parliamentary Budget Office prepare a cost estimate of Bill S-202: *An Act to amend the Parliament of Canada Act* (Parliamentary Visual Artist Laureate). The bill would establish the position of the Parliamentary Visual Artist Laureate. The mandate and administrative structure is intended to be analogous to the existing Parliamentary Poet Laureate (PPL). The PBO estimates the annual ongoing fiscal impact to be $0.1 million per annum.
• Volunteer Firefighters and Search and Rescue Volunteers Tax Credit Enhancement
  Feb 28, 2022 • LEG-2122-033-S
  The proposed measure increases the tax credit for volunteer firefighters and search and rescue volunteers to $10,000 from $3,000 for individuals that have completed 200 hours of volunteer service in a calendar year. The measure applies to the 2022 and subsequent taxation years. The PBO estimates that the proposed measure will generate a 5-year cost of $171 million.
• Temporarily Expanding Eligibility for the Local Lockdown Program
  Feb 16, 2022 • LEG-2122-031-S
  The local lockdown program provides increased support under the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) programs for businesses whose activities are restricted by public health measures. As enacted in Bill C-2, the increased subsidy rates were applicable to businesses whose activities stopped due to a public health restriction that accounted for more than 25% of baseline revenues. A proposed Order in Council expands this measure between 19 December 2021 and 12 March 2022. Specifically, the measure is extended to all businesses with any location whose capacity has been reduced by 50% or more due to a public health measure, and whose activities restricted by the public health order account for at least 50% of the entity’s total qualifying baseline revenues. For this period, the threshold to qualify for the CEWS and CERS is revised to a 25% revenue reduction and subsidies are increased to be proportional to revenue declines up to a maximum of 75%. This costing focuses only on the period during which the expanded lockdown eligibility is in effect. We expect the Local Lockdown Program to cost an additional $885 million in subsidies under the CEWS and an additional $338 million under the CERS programs. This represents a net cost to the federal government of $1,058 million after accounting for incremental corporate income tax revenues.
• Canada Worker Lockdown Benefit (CWLB) under Expanded Eligibility
  Feb 16, 2022 • LEG-2122-032-S
  The Canada Worker Lockdown Benefit (CWLB) provides a taxable benefit of $300 per week to workers whose weekly income is at least 50% decreased compared to the previous year’s average due to a government-imposed COVID-19 lockdown. The worker must be in an area that is designated as a lockdown region for the week of application. Workers must have earned at least $5,000 in any of 2020, 2021 or the 12 months before their benefit claim. While receiving the CWLB, workers must not simultaneously be receiving employer-paid leave or certain other types of government benefits (such as the Canada Recovery Sickness Benefit or Employment Insurance). For the period of December 19, 2021 to March 12, 2022, the definition of “lockdown” for the purposes of the CWLB was expanded by the federal government. This costing will only focus on the period during which the expanded lockdown definition is in effect. Eligible workers can currently retroactively apply to the CWLB up to October 24, 2021, for which the original lockdown definition applies. However, only a very small number of workers resided in regions that met the original lockdown criteria from October 24 to December 18, 2021. Due to the small number of potential claimants and data limitations, the PBO did not calculate the cost of the CWLB before December 19, 2021. The PBO estimates that the total net cost of this measure will be $248 million. This includes a gross cost of $266 million and a cost recovery of $18 million.
• Making the Disability Tax Credit Refundable (Motion M-6, 44th Parliament)
  Feb 3, 2022 • LEG-2122-028-S
  Making the existing Disability Tax Credit (DTC) refundable within the meaning of the Income Tax Act. The applicable 2021 credit for adults is $8,662, with an additional $5,053 supplement for those under 18.
• Small Business Air Quality Improvement Tax Credit
  Feb 1, 2022 • LEG-2122-030-S
  Pursuant to Bill C-8, the Small Business Air Quality Improvement Tax Credit would provide a 25% refundable tax credit for installation or upgrade of ventilation and air filtration systems. Eligible claimants are sole proprietors and Canadian Controlled Private Corporations (CCPCs) with less than $15 million in taxable capital (or partnerships, where one of the partners is an eligible claimant). Entities can claim up to $10,000 in eligible expenses for each location, up to a maximum of 5 locations. The temporary tax credit would be available for qualifying expenditures made between September 1, 2021 and December 31, 2022.
• Enhancing the Eligible Educator School Supply Tax Credit
  Jan 31, 2022 • LEG-2122-026-S
  Pursuant to Bill C-8, the Eligible Educator School Supply Tax Credit rate will be increased from 15% to 25%. This rate will still apply to eligible teaching supplies expenses of up to $1,000 and the credit will remain refundable. The definition of eligible teaching supplies will be modified to include technological devices and the requirement that the supplies must be used in school will be waived. This measure would apply to the 2021 and subsequent taxation years.
• Underused Housing Tax Act
  Jan 31, 2022 • LEG-2122-027-S
  Pursuant to Bill C-8, the Underused Housing Tax Act would implement a 1 percent tax on the value of dwellings owned by non-resident, non-Canadians that are considered to be vacant or underused. Several exemptions apply. Notably, properties that are the primary place of residence for the owner, owners’ common-law partner or owners’ children. In addition, vacation/recreational properties are also excluded. The new measure will take effect on January 1, 2022.
• Canada Recovery Hiring Program (CRHP) as extended by Bill C-2
  Jan 31, 2022 • LEG-2122-029-S
  Providing eligible employers with a subsidy on the incremental remuneration paid to eligible employees between 6 June 2021 and 7 May 2022. Bill C-2 extended this program beyond its original end date of 20 November 2021 to instead end on 7 May 2022. Bill C-2 also increased the subsidy rate for October 24 to November 20th to 50%.
• Canada Emergency Wage Subsidy (CEWS) - as extended by Order in Council 2021-0882 & as further extended by Bill C-2
  Dec 9, 2021 • LEG-2122-025-S
  Providing a wage subsidy to employers with reduced revenues. Employers must choose between the Canada Recovery Hiring Program and this program. We expect that the extension of the Canada Emergency Wage Subsidy by Bill C-2 will result in an additional $5,456 million in subsidies being paid beyond those already approved by Order in Council 2021-0882. Of these additional subsidies, we expect $666 million to be paid under the Tourism and Hospitality Recovery Program, and $4,790 million to be paid under the Hardest-Hit Business Recovery Program. With this extension, we expect the gross cost of the Canada Emergency Wage Subsidy to be $106,680 million. This represents a net cost to the federal government of $92,307 million after accounting for corporate income tax recoveries.
• Cost Estimate of Bill C-3: An Act to amend the Criminal Code and the Canada Labour Code (ten days of paid sick leave per year to workers in the federally regulated private sector)
  Dec 7, 2021 • LEG-2122-024-S
  The bill legislates 10 paid sick days for employees in federally regulated workplaces who do not have access to at least 10 paid sick days, including the federally regulated private sector (FRPS) and employees of federal Crown corporations. The PBO estimates that this amendment will generate a total revenue of $229 million over four years (from 2021-22 to 2024-25).
• Canada Recovery Caregiver Benefit (CRCB) – 28 Week Extension
  Nov 30, 2021 • LEG-2122-021-S
  On October 21, 2021 the Government announced the extension of the eligibility of the Canada Recovery Caregiver Benefit (CRCB) by an additional 28 weeks as well as an additional two weeks to the maximum benefit period bringing it to a total of 44 weeks. The increase in the maximum number of benefit periods would begin after the week of November 20th, 2021. The CRCB provides a $500 weekly taxable benefit per household for workers who miss at least 50% of their normal time at work during a week to care for someone for reasons related to COVID-19. Eligible workers must have earned at least $5,000 in any of 2019, 2020, or the span of 12 months before they apply for the CRCB. They are ineligible for the CRCB if they are receiving certain other benefits (for example, the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, Employment Insurance). This program, after the extension, sunsets on May 7, 2022.
• Canada Recovery Sickness Benefit (CRSB) – 28 Week Extension
  Nov 30, 2021 • LEG-2122-022-S
  As proposed by Bill C-2, the Canada Recovery Sickness Benefit (CRSB) would be extended by 28 weeks. This would result in the CRSB being in effect from September 27, 2020 to May 7, 2022, with the current extension beginning on October 24, 2021. As well, beginning the week of November 21, 2021, the number of weeks for which workers could claim the CRSB over the course of the program would increase from 4 to 6 weeks. The CRSB provides a $500 taxable benefit to workers who miss at least 50% of their usual weekly time spent working due to having COVID-19, self-isolating due to COVID-19, or having a medical condition that would make the worker more vulnerable to COVID-19. Workers must have earned not less than $5,000 in the 2019, 2020 or 2021 calendar years or in the 12-month period before they claim the CRSB. They must not be collecting certain other types of government benefits while they are collecting the CRSB. PBO estimates the net cost to extend the length of the CRSB program and to increase the number of claimable weeks per worker to be $507 million.
• Canada Emergency Rent Subsidy (CERS) – as extended by Order in Council 2021-0882 & as further extended by Bill C-2
  Nov 30, 2021 • LEG-2122-023-S
  Providing a rent subsidy to employers with reduced revenues. We expect that the extension of the Canada Emergency Rent Subsidy (CERS) by Bill C-2 will result in an additional $676 million in subsidies being paid beyond those already approved by Order in Council 2021-0882. Of these additional subsidies, we expect $134 million to be paid under the Tourism and Hospitality Recovery Program, and $542 million to be paid under the Hardest-Hit Business Recovery Program. With this extension, we expect the gross cost of the CERS to be $8.3 billion. This represents a net cost to the federal government of $7.2 billion after accounting for corporate income tax recoveries.
• Tax credit for recent graduates working in a designated region (Bill C-295)
  Aug 9, 2021 • LEG-2122-020-M
  This note was prepared at the request of Mr. Maxime Blanchette-Joncas, MP for Rimouski-Neigette—Témiscouata—Les Basques. Introducing a tax credit of up to $3,000 per year, to a maximum cumulative amount of $8,000, for recent graduates working in a designated region. The designated regions are usually rural or remote. The tax credit will be available beginning in 2021. The PBO estimates that the cost will peak at $129 million in 2023-24. It will then decrease slightly over the next two years before reaching a steady state in 2025-26. It will then grow at the same rate as the target population.
• Immediate expensing for Canadian-Controlled Private Corporations (CCPC)
  Jul 21, 2021 • LEG-2122-019-S
  Introducing immediate expensing for eligible property (most capital property except generally long-lived assets) acquired by a CCPC on or after Budget Day and that becomes available for use before January 1, 2024, up to a maximum amount of $1.5 million per taxation year. The availability of other enhanced deductions under existing rules – such as the full expensing for manufacturing and processing machinery and equipment and for clean energy equipment, introduced in the 2018 Fall Economic Statement – would not reduce the maximum amount available under this new measure.
• Extending the temporary enhancements to the Work-Sharing program for employers and employees affected by COVID-19
  Jul 8, 2021 • LEG-2122-018-S
  Temporary enhancements to the Work-Sharing (WS) program, currently effective between March 15, 2020 and September 26, 2021 will be extended for one additional year. This includes the extension of the maximum duration of a WS agreement from 38 weeks to 76 weeks, the waiving of the mandatory cooling off period for employers already using the WS program, the easing of the recovery plan requirements, and the expansion of eligibility criteria.
• Increasing Old Age Security for Canadians 75 and Over
  Jun 23, 2021 • LEG-2122-015-S
  - Providing a one-time taxable payment of $500 in August 2021 to OAS pensioners who will be 75 or over as of June 2022. This will include seniors whose OAS pensions have been fully clawed back through the OAS Recovery Tax. - Increasing OAS payments for pensioners 75 and over by 10 per cent on an ongoing basis as of July 2022.
• Interest-free Loans for Home Retrofits
  Jun 23, 2021 • LEG-2122-016-S
  This measure offers up to $40,000 in interest-free loans to eligible homeowners and landlords to complete deep home retrofits recommended through an authorized EnerGuide energy assessment. This measure builds on a program put forward in the 2020 Fall Economic Statement, which provided funding for up to one million free energy audits and up to 700,000 grants of up to $5,000 for homeowners to complete energy efficient home improvements.
• Update: Bill C-206 - Extension of the exemption for qualifying farming fuel to marketable natural gas and propane
  Jun 23, 2021 • LEG-2122-017-S
  Bill C-206 amends the Greenhouse Gas Pollution Pricing Act to extend the exemption for qualifying farming fuel to marketable natural gas and propane. This note updates a prior PBO costing to account for the federal carbon pricing backstop rising to $170/Gt by 2030.
• Temporarily Waiving the One-week Waiting Period for Employment Insurance Claims
  Jun 17, 2021 • LEG-2122-013-S
  Waiving the waiting period for EI beneficiaries who establish a new claim between January 31, 2021, and September 25, 2021. This includes claims for regular, fishing, and special benefits and will allow people who apply during that period and return to work before exhausting all their weeks of entitlement to benefit from an additional week of income support. The maximum number of weeks of benefits will not change.
• Maintaining flexible and uniform access to regular, fishing, and special EI benefits across all regions
  Jun 17, 2021 • LEG-2122-014-S
  Maintaining uniform access to EI regular and special benefits across all regions, through a 420-hour entrance requirement, with a 14-week minimum entitlement for regular benefits, and a new common earnings threshold for fishing benefits. This measure is assumed to come into force on September 26, 2021 and last for one year.
• Modifications to federal financial assistance supports for students and recent graduates
  Jun 10, 2021 • LEG-2122-012-S
  Modifying federal student financial assistance, including support under the Canada Student Loans Program (CSLP).
• Canada Workers Benefit (CWB) Enhancement
  Jun 3, 2021 • LEG-2122-011-S
  Broadening access to the CWB by increasing the phase-in rates and thresholds, as well as providing greater financial incentive for working couples. This includes: - Raising the phase-in rate of the CWB basic amount from 26% to 27% and the phase-out rate from 12% to 15%. - Increasing the phase-out thresholds from $13,194 to $22,944 for single individuals without dependents and from $17,522 to $26,177 for families. - For the disability supplement, augmenting the phase-out rates from 6.0 per cent to 7.5 per cent for individuals and from 12.0 per cent to 15.0 per cent otherwise. - Creating the new “secondary earner exemption” for working couples. This allows the spouse or common-law partner with the lower working income to exclude up to $14,000 of their working income in the computation of their adjusted net income, for the purpose of the CWB phase out.
• Digital services tax
  May 27, 2021 • LEG-2122-007-S
  Implementation of a new tax on revenues for companies offering digital services. The tax will take effect January 1, 2022. This measure is temporary and will only apply in the event that Canada does not reach a multilateral agreement on the taxation of digital services. It will be a 3% tax on revenues collected by online marketplaces, social media, online advertising services, and user data sales and licensing services. This tax will apply to businesses with worldwide revenues of at least €750 million and Canadian revenues of more than $20 million.
• Employment Insurance Sickness Benefits Extension
  May 27, 2021 • LEG-2122-009-S
  In Budget 2021 the Government of Canada proposed to increase the maximum number of weeks for which employment insurance sickness benefits may be paid due to a prescribed illness, injury, or quarantine to 26 weeks from 15 weeks. The extension is planned to come into effect summer 2022.
• Canada Recovery Hiring Program
  May 27, 2021 • LEG-2122-010-S
  Provide eligible employers with a subsidy of up to 50 per cent on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021. Employers must choose between the Canada Emergency Wage Subsidy (CEWS) or the Canada Recovery Hiring Program (CRHP).
• Emissions Reduction Fund – Onshore
  May 26, 2021 • LEG-2122-006-S
  Introducing financial support for oil and gas companies to reduce methane emissions. The Emissions Reduction Fund (ERF) – Onshore will offer up to $675 million in contributions to support capital projects that lower or eliminate routine venting of methane oil and gas operations. The overall ERF includes a further $75 million for offshore oil and gas operations, which is outside the scope of the analysis.
• Bill C-265: Employment Insurance Sickness Benefits Extension
  May 26, 2021 • LEG-2122-008-S
  Bill C-265 proposes to increase the maximum number of weeks for which employment insurance sickness benefits may be paid due to a prescribed illness, injury, or quarantine to 50 weeks from 15 weeks. The extension is planned to come into effect summer 2022.
• Rate Reduction for Zero-Emission Technology Manufacturers
  May 20, 2021 • LEG-2122-004-S
  The corporate income tax (CIT) rate on eligible zero-emission technology manufacturing and processing activities will be reduced in half. This will reduce the CIT rate on small businesses from 9 to 4.5 per cent and the general CIT rate from 15 to 7.5 per cent. The rate reduction will apply to taxation years that begin after 2021 and before 2031 (gradually phasing out between 2029 and 2031).
• Luxury goods sales tax
  May 20, 2021 • LEG-2122-005-S
  The introduction of a sales tax applied at the point of purchase of automobiles and aircraft valued over $100,000 and vessels valued over $250,000. The tax will only apply to new vehicles purchased for personal use. The tax rate will be the lesser of 10 per cent of the full value of the vehicle, or 20 per cent of the value above the threshold. This tax will come into effect on January 1, 2022.
• Tax on Unproductive Use of Canadian Housing by Foreign Non-resident Owners
  May 13, 2021 • LEG-2122-002-S
  In Budget 2021 the government of Canada proposed to introduce a national 1% tax on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. The tax is planned to take effect on January 2022 and will require all owners of residential property in Canada, other than Canadian citizens or permanent residents to file a declaration for the prior calendar year in respect of each Canadian residential property they own. Depending on circumstances, owners may be eligible to exemptions from the tax in respect of a property for the year. An exemption may be available, for instance, where a property is leased to one or more qualified tenants in relation to the owner for a minimum period in a calendar year.
• The Collection of GST from Foreign-Based Sellers on Goods Sold to Canadian Residents from Canadian Fulfillment Warehouses
  May 13, 2021 • LEG-2122-003-S
  Certain foreign-based sellers store goods in warehouses within Canada in anticipation of the goods being sold to buyers located in Canada. Once an item is purchased, it is shipped from the warehouse to the buyer. For items over the de minimis threshold (DMT) , while GST is paid on the wholesale value of a good when it is imported into Canada, GST is not necessarily collected on the gap between the wholesale value and the final price of the good. The proposed measure would ensure that GST is collected on this price gap. For items under the DMT, no GST is paid upon entry of the good into Canada. The policy would impose GST on the final price of these items if they are stored in a fulfillment warehouse before being sold to the final customer. If a seller is registered to collect GST, the seller themselves would be responsible for collecting GST on the final price. If a seller is not registered but they sell through a distribution platform, the platform would be responsible for collecting GST on the final price on behalf of the seller. This policy would come into effect on July 1, 2021.
• Tobacco Taxation Increase
  May 5, 2021 • LEG-2122-001-S
  This is an independent cost estimate of a budgetary measure contained in the federal government’s Budget 2021. A list of the PBO’s cost estimates of components of the Budget can be viewed on [this page](https://www.pbo-dpb.gc.ca/en/budget-2021). Increasing the tobacco excise duty rate by $4 per carton of 200 cigarettes, along with corresponding increases to the excise duty rates for other tobacco products.