Legislative Costing Notes - 2024-25

• Amending the Citizenship Act (2024)
  Dec 19, 2024 • LEG-2425-015-M
  Bill C-71 aims to amend the Citizenship Act, conferring citizenship by descent to those born outside Canada, whether in the first or subsequent generations, before or after the bill's enactment, provided they have a Canadian citizen parent who meets specific criteria. Additionally, it extends citizenship under section 5.1 of the Act to anyone born abroad and adopted by a Canadian citizen parent, regardless of when the adoption occurred, as long as certain conditions are met. The bill also reinstates citizenship for individuals who lost it under the former section 8 of the Act and allows those who were citizens or born to a parent or grandparent who would have been a citizen if not for their death, to reclaim their citizenship, with some exceptions. Lastly, it permits certain individuals who gain citizenship through this bill to renounce it if they choose. The bill is assumed to come into force on April 1st, 2025, and persons affected by the bill are assumed to apply during their first year in which they become eligible. The Parliamentary budget Officer (PBO) estimates a total net cost of the proposed amendments to the Citizenship Act to be $20.8 million over five years, beginning in 2025-2026. The total number of persons that would be affected is estimated to be around 115,000 over the same period.
• Implementing a two-month Goods and Services Tax/Harmonized Sales Tax (GST/HST) break for groceries and holiday essentials
  Dec 9, 2024 • LEG-2425-014-S
  Bill C-78 introduces amendments to the Excise Tax Act to implement a temporary GST/HST holiday between December 14, 2024, and February 15, 2025. The proposed list of exempt items includes certain groceries, restaurant meals, drinks, snacks, children’s clothing, and gifts. PBO estimates this measure will reduce federal revenues by $1.5 billion in 2024-25. PBO also examined the potential impact of the Bill on federal compensation to provincial governments that collect the Harmonized Sales Tax (HST) under their respective Comprehensive Integrated Tax Coordination Agreements (that is, Ontario, Newfoundland and Labrador, Prince Edward Island, Nova Scotia, and New Brunswick). If these provinces do not waive the compensation required under these agreements, PBO estimates that the federal cost would be $1.3 billion greater.
• Cost estimate of alcohol excise duty relief - Update
  Dec 6, 2024 • LEG-2425-013-S
  This note is an update to the cost estimate published on June 17, 2024, which contains a revision and improvement to the calculation of the breakdown of total cost between the different types of alcohol. It also incorporates more recent Consumer Price Index (CPI) data and forecast which slightly reduces the total cost over five years. Lastly, it now provides a breakdown of the cost between foregone excise duty revenue and foregone GST revenue.
• Canada’s surtax on Chinese-made electric vehicles, steel and aluminum
  Dec 5, 2024 • LEG-2425-012-S
  On October 1, 2024, the federal government implemented a 100 per cent surtax on Chinese-made electric vehicles (EVs) imported into Canada. The federal government also implemented a 25 per cent surtax on imports of steel and aluminum products from China starting on October 22, 2024. On October 18th, federal government launched the process to request remission of surtaxes on EVs and steel and aluminum imported from China under specific circumstances. The Parliamentarian Budget Officer (PBO) estimates that the two measures will raise federal revenues by $473 million from 2024-25 to 2028-29.
• Budget 2024 Update to the Alternative Minimum Tax
  Nov 7, 2024 • LEG-2425-011-S
  Budget 2024 introduced amendments to the Alternative Minimum Tax (AMT) calculation originally proposed in Budget 2023. Budget 2024 will allow 80 per cent of charitable donations to be excluded from the AMT tax base (up from the originally proposed 50 per cent). It will also allow certain new deductions and credits and certain previously disallowed credits to be eligible for the AMT carry-forward. In addition, it will include AMT exemptions for Employee Ownership Trusts and certain trusts for the benefit of Indigenous Groups. The amendments are assumed to have been in effect as of January 1, 2024. The Parliamentary Budget Officer (PBO) estimates a decrease of $598 million in income tax revenues from 2023-24 to 2027-28.
• Amending federal statutes to regulate activities related to elephants and great apes
  Aug 8, 2024 • LEG-2425-009-M
  Bill S-15 proposes to amend the Criminal Code and the Wild Animal and Plant Protection and Regulation of International and Interprovincial Trade Act (WAPPRIITA). PBO estimates total net cost of the bill to be $8 million over five years, beginning in 2025-2026.
• Increasing the Capital Gains Inclusion Rate
  Aug 1, 2024 • LEG-2425-010-S
  Budget 2024 introduced an increase in the capital gains inclusion rate from one half to two thirds for corporations and trusts, and from one half to two third on the portion of capital gains realized in the year that exceed $250,000 for individuals. This policy is in effect for capital gains realized on or after June 25th, 2024. The Parliamentary Budget Officer (PBO) estimates an increase of $17.4 billion in income tax revenues from 2024-25 to 2028-29.
• The Online Harms Act: Establishment of a Digital Safety Commission, Ombudsperson and Office
  Jul 4, 2024 • LEG-2425-008-M
  Preliminary estimates from the Department of Canadian Heritage indicate that the Digital Safety Commission, Ombudsperson and Office will have 330 full-time equivalent (FTE) employees at full capacity. The PBO estimates that from 2024-2025 to 2028-2029 the total operating costs will be $201 million, minus any possible administrative monetary penalties, fines and/or regulatory charges collected by the Commission, Ombudsperson and Office.
• Temporary changes to the Canada Student Financial Assistance Program in school year 2024-25
  Jun 21, 2024 • LEG-2425-007-S
  Extending the increase in full-time Canada Student Grants (CSG) from $3,000 to $4,200 per year, and interest-free Canada Student Loans (CSL) from $210 to $300 per week for an additional school year, 2024-25. Grants for part-time students, students with disabilities, and students with dependants will also be increased proportionately. PBO estimates total net cost of this measure to be $1.1 billion over five years, beginning in fiscal year 2024-25.
• Cost estimate of alcohol excise duty relief
  Jun 17, 2024 • LEG-2425-006-S
  In an announcement on March 9, 2024, the government proposed two measures to provide excise duty relief to alcohol producers.
• Accelerated Capital Cost Allowance for Eligible New Purpose-built Rental Housing
  May 22, 2024 • LEG-2425-005-S
  The accelerated capital cost allowance increases the maximum allowable rate of depreciation from 4 per cent to 10 per cent on eligible new purpose-built rental housing. Eligible properties must contain at least four private apartment units (or 10 private rooms); and at least 90 per cent of residential units must be held for long-term rental. To qualify, construction must begin after April 15, 2024, and be completed before January 1, 2036. *Revised: 2024-05-22 02:15 PM*
• An Act respecting pharmacare
  May 15, 2024 • LEG-2425-003-S
  Bill C-64 proposes to provide universal, single-payer, first-dollar coverage for a range of contraception and diabetes medications as the first phase of national universal pharmacare. The aim of the program is to expand and enhance, rather than replace, existing provincial and territorial coverage. The PBO estimates that the first phase of national universal pharmacare will increase federal program spending by $1.9 billion over five years. This estimate assumes that any medications that are currently covered by provincial and territorial governments, as well as private insurance providers will remain covered on the same terms.
• Supporting Journalists and News Organizations
  May 10, 2024 • LEG-2425-004-S
  The federal government is proposing to enhance the Canadian journalism labour tax credit that was initially established in 2019. PBO estimates that the new provisions of the measure will result in an additional cost of $104 million to the public purse.
• Supporting Employee Ownership Trusts
  Apr 23, 2024 • LEG-2425-002-S
  As initially proposed in Budget 2022, the government introduced tax rules for the creation of employee ownership trusts (EOT) in Budget 2023 to give business owners an alternative succession option. In response to stakeholder feedback, Fall Economic Statement (FES) 2023 proposes to temporarily exempt up to $10 million in capital gains realised on the sale of a private business to an EOT from taxation in the 2024, 2025 and 2026 tax years. Further, Budget 2024 proposes changes to capital gains taxation that will impact the amount of capital gains a business owner could exempt following the sale of their private business to an EOT.
• Estimated revenues from the Underused Housing Tax
  Apr 19, 2024 • LEG-2425-001-S
  The Underused Housing Tax (UHT) is an annual federal 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022. Since then, there has been continued interest by Parliamentarians on the expected revenues generated by the UHT. Furthermore, in November 2023 the Department of Finance release legislative and regulatory proposals designed to facilitate compliance with the UHT. The PBO estimates that the revenues generated from this tax will be $131.7 million in fiscal year 2023-24 and $693.9 million over a 5-year period.