CANADA, December 30 – A number of tax changes, including a tax credit for volunteer firefighters and ground search and rescue (RSS) first responders, will be introduced in the new year.
The changes will take effect on January 1, 2022 and include:
- increasing the firefighter tax credit from $ 500 to $ 1,000, registering a second vehicle free for firefighters and expanding these benefits to include RSS volunteers;
- increase the basic personal amount by $ 750 up to a new threshold of $ 11,250, the amounts for spouse and spouse equivalent being increased proportionally;
- increase the tax reduction threshold for low income individuals by $ 1,000 (from $ 19,000 to $ 20,000);
- reduce the small business rate to an overall rate of 1%, the lowest of the Atlantic provinces;
- reopening the Community Economic Development Business Program so that eligible investors can receive a 35 percent provincial tax credit of up to $ 7,000; and
- lower the interest rate on overdue property taxes to 1 percent per month instead of 1.5 percent.
“These tax changes will help keep more money in the pockets of Islanders as we navigate and respond to the effects of the COVID-19 pandemic. Islanders have played an important role in our response to the pandemic and we want to help them save more taxes and continue to invest in their communities. “
– Minister of Finance Darlene Compton
“Firefighters and ground search and rescue play a vital role in keeping our island communities safe,” Justice and Public Safety Minister Bloyce Thompson said. “It is our loved ones, our friends and our neighbors who put their lives in danger for us. I am proud that our government is providing them with financial assistance for the hard work they do to keep PEI safe.
Changes to the Volunteer Firefighter Tax Credit and RSS will be included in the next 2022 provincial operating budget. Free registration of a second vehicle for firefighters and RSS will be administered by the Ministry of Transportation and Infrastructure via the Access PEI sites.
Kip Ready Ministry of Finance [email protected]