Legislative Costing Notes - 2023-24 - Office of the Parliamentary Budget Officer

This measure proposes to deny income tax deductions when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting, or registration requirements. The measure would be effective for the 2024 taxation year.

Extension of the exemption for qualifying farming fuel to marketable natural gas and propane – Updated cost estimate

Feb 13, 2024 LEG-2324-024-M

This note addresses Bill C-234, as passed with amendments by the Senate. Bill C-234 proposes to amend the Greenhouse Gas Pollution Pricing Act to extend the exemption for qualifying farming fuel to marketable natural gas and propane.

Investment Tax Credit for Clean Hydrogen

Feb 1, 2024 LEG-2324-021-S

The Clean Hydrogen Investment Tax Credit (ITC), first announced in the 2022 Fall Economic Statement and described in Budget 2023, will provide a 15 to 40 per cent refundable tax credit for investments in projects that produce all, or substantially all, hydrogen through their production process. This measure would apply to property that is acquired and that becomes available for use on or after March 28, 2023.

Investment Tax Credit for Carbon Capture, Utilization and Storage

Feb 1, 2024 LEG-2324-022-S

As initially proposed in Budget 2021, the government introduced an investment tax credit (ITC) for capital invested in Carbon Capture, Utilization and Storage (CCUS) projects. This note contains the costing of the ITC for CCUS. It covers the announcement in Budget 2022 which introduced the refundable tax credit for CCUS as well as Budget 2023 which announced revisions to the credit.

Eliminating the Goods and Services Tax in respect of carbon pricing

Jan 23, 2024 LEG-2324-019-S

Bill C-358 proposes to amend the Excise Tax Act to eliminate the Goods and Services Tax (GST) in respect of carbon pricing. The Bill would remove the GST that would be paid: a) on any tax, duty or fee imposed under the Greenhouse Gas Pollution Pricing Act, such as the fuel charge and the Output-Based Pricing System (OBPS); b) on any provincial levy imposed in respect of carbon pricing, such as the cap-and-trade system in Quebec or carbon tax in British Columbia.

Enhancements to the Oil to Heat Pump Affordability program

Jan 18, 2024 LEG-2324-020-S

From March 2023 to October 2023, the OHPA program offered eligible households a grant of up to $10,000 toward the cost of a qualified heat pump. After October 2023 and until March 2027, the enhanced OHPA program offers eligible households in co-delivery provinces a federal grant of up to $15,000, supplementary provincial grants, and a one-time bonus payment of $250.

Amendment to the Excise Tax Act to exempt psychotherapy and mental health support services from the GST

Dec 12, 2023 LEG-2324-018-S

This bill proposes making psychotherapy and mental health support services exempt from the Goods and Services Tax (GST). The PBO estimates that this measure would result in a $64 million shortfall for the public treasury over a five-year period.

Revenue of a Corporate Tax Rate Increase Based on CEO-to-Median Worker Pay Ratio

Dec 6, 2023 LEG-2324-017-M

Motion M-87, Corporate Tax Rate Increase and Disclosure of CEO-to-Median-Worker Pay Ratio, introduced by Member of Parliament Jagmeet Singh, proposes to implement an increase in the corporate income tax rate for large corporate entities that have a disparity in their CEO-to-median worker pay ratio.

Extension of repayment deadline and interest-free period for CEBA loans to 31 Dec. 2024

Nov 23, 2023 LEG-2324-016-M

Motion M-99, Extension of the Canada Emergency Benefit Account Loan Forgiveness Deadline, introduced by Member of Parliament Don Davies, proposes to extend the deadline to repay Canada Emergency Business Account (CEBA) loans from 18 January 2024 to 31 December 2024 and to extend the interest-free period until the same date.

Pausing the fuel charge on heating oil and doubling the rural top-up rate for fuel charge rebates

Nov 17, 2023 LEG-2324-015-S

This note contains the costing of two measures announced by the Government on October 26, that is pausing the fuel charge on deliveries of heating oil and doubling the rural top-up rate for fuel charge rebates.

Regulating activities related to great apes, elephants, and other designated animals

Nov 1, 2023 LEG-2324-014-M

The bill would prohibit private ownership of these animals as exotic pets and require federal regulation of zoos and other facilities holding such animals.

Applying the Canada Recovery Dividend to Fossil Fuel Companies

Oct 26, 2023 LEG-2324-011-M

Motion M-92, Climate Crisis and Affordability, introduced by Member of Parliament Mike Morrice, proposes to immediately extend the Canada Recovery Dividend to include fossil fuel companies operating in Canada.

Extension of repayment deadline and interest-free period for CEBA loans

Oct 17, 2023 LEG-2324-012-S

Extending the deadline to repay Canada Emergency Business Account (CEBA) loans from December 31, 2023 to January 18, 2024; extending the interest-free period until that same deadline; and, granting a further grace period for repayment to March 28, 2024 for CEBA loan holders that submit a refinancing loan application to the financial institution that provided their CEBA loan by January 18, 2024.

Digital Services Tax

Oct 17, 2023 LEG-2324-013-S

The Budget 2023 confirms the government’s intention to implement a Digital Services Tax (DST) as of 1 January 2024, with retroactive effect to 1 January 2022 if Canada does not reach a multilateral agreement on the taxation of digital services.

Investment Tax Credit for Clean Technology Manufacturing

Sep 28, 2023 LEG-2324-010-S

This note estimates the total cost of the refundable investment tax credit for Clean Technology Manufacturing, proposed in Budget 2023, which equals to 30 per cent of the capital cost of eligible property associated with eligible activities.

Investment Tax Credit for Clean Electricity

Jun 29, 2023 LEG-2324-006-S

Budget 2023 proposed an Investment Tax Credit for Clean Electricity which introduces a 15 per cent refundable tax credit for eligible investments in non emitting electricity generating systems, abated natural gas fired electricity generation, stationary electricity storage systems and equipment for the transmission of electricity between provinces and territories. Importantly, both taxable and non-taxable entities such as public utilities would be eligible for the credit. The credit would be available as of the day of Budget 2024 for projects that did not begin construction before the day of Budget 2023. The credit would not be available after 2034. The Department of Finance is engaging with provinces, territories, and other relevant parties to develop the design and implementation details of the tax credit. The PBO estimates that the Investment Tax Credit for Clean Electricity will reduce federal revenues by $6 billion over 4 years.

Investment Tax Credit for Clean Technology

Jun 29, 2023 LEG-2324-007-S

The 2022 Fall Economic Statement proposed to introduce a refundable Clean Technology Investment Tax Credit equal to 30 per cent of the capital cost of eligible equipment. Eligible investments include equipment to generate electricity from renewable sources, stationary electricity storage equipment, low carbon heating equipment as well as non road zero emission vehicles (ZEV) and charging equipment. Budget 2023 expanded eligibility under the credit to include geothermal energy systems. The credit is available for the capital cost of property that is acquired and that becomes available for use after Budget 2023. It will be phased out in 2034.

New Canadian Dental Care Plan

Jun 28, 2023 LEG-2324-009-S

As part of the 2023 Federal Budget, the federal government introduced the New Canadian Dental Care Plan, which will provide dental coverage to uninsured Canadians with annual family income of less than $90,000, with no co-payments for those with family incomes under $70,000. In 2023 the plan will cover those 18 and under, seniors and those living with a disability; the plan will be fully implemented in 2025.

Elimination of dividend deductions from income tax for financial institutions

Jun 15, 2023 LEG-2324-008-S

Budget 2023 introduced a new amendment to the Income Tax Act that would eliminate the deduction of dividends received on shares that are “mark-to-market” property held by financial institutions. As a result, dividends received after 2023 will be considered regular business income.

An Act to amend the Old Age Security Act

May 31, 2023 LEG-2324-005-M

This bill proposes to increase the amount of the full pension to which all pensioners aged 65 or older are entitled to by 10 per cent, and to raise the exemption for employment income or self-employment earnings considered in determining the amount of the Guaranteed Income Supplement (GIS) to $6,500 from $5,000.

Cost estimate of Employment Insurance Board of Appeal

May 12, 2023 LEG-2324-004-M

Bills C-37 and C-47 propose the establishment of the Employment Insurance Board of Appeal (BOA) which will replace the Social Security Tribunal General Division – Employment Insurance (SST – EI). The total net cost between 2023-24 to 2027-28 is estimated to be $132 million. The necessary funding is expected to be covered by the Employment Insurance Operating Account (EIOA) and the cost to be recuperated by increasing Employment Insurance (EI) premiums by less than 1 cent.

Increasing the Air Travellers Security Charge

May 9, 2023 LEG-2324-003-S

The Air Travellers Security Charge (ATSC) is a flat fee levied on air travellers at the time of ticket purchase and funds airport security screening by the Canadian Air Transport Security Authority (CATSA). Budget 2023 proposes to increase the ATSC by 32.85 percent, effective May 1, 2024. The charges would increase as follows: $9.94 for a one-way domestic flight (from $7.48), $19.87 for a round trip domestic flight (from $14.96), $16.89 for a transborder flight (from $12.71), and $34.42 for an international flight (from $25.91).

Cost Estimate of the Grocery Rebate

May 4, 2023 LEG-2324-002-S

Bill C-46/C-47 proposes a grocery rebate to support families who are the most affected by inflation. The rebate will be delivered through the Goods and Services Tax credit. The PBO estimates the cost of the Grocery Rebate to be $2.4 billion in 2023-24.

EI Attachment Benefit for Adoptive and Intended Parents

Apr 5, 2023 LEG-2324-001-M

Bill C-318 proposes to introduce an EI attachment benefit for parents who adopt a child under the age of 18, as well as for intended parents of a child born through surrogacy. Beneficiaries would receive 55 per cent of their average insurable weekly earnings for 15 weeks, up to a maximum amount determined by the maximum yearly insurable earnings in that year. For 2023, the maximum weekly benefit amount is $650. For each child, the 15 weeks of benefits could be divided between two parents. PBO estimates the proposed new EI attachment benefit for adoptive and intended parents (parents of children born through surrogacy) will cost $88 million over 2023-24 to 2027-28.