Manitobans and businesses will pay $88.8 million less in provincial tax in 2009, Finance Minister Greg Selinger has announced.
Tax reductions include:
$59.3 million less in business taxes:
• reducing the general corporate income tax rate to 12 per cent from 13 per cent on July 1;
• reducing the small business rate to one per cent from two per cent on Jan. 1;
• reducing the general capital tax rate to 0.3 per cent from 0.4 per cent for non-manufacturers, for taxation years that commence after Jan. 1, 2009, and small businesses will benefit from a rate reduction to 0.1 per cent from 0.2 per cent;
• increasing the Farmland School Tax Rebate on school taxes increases to a 75 per cent rebate from a 70 per cent rebate;
• extending the Co-op Education and Apprenticeship Tax Credit to levels 3, 4 and 5 apprentices; and
• doubling the annual share approval limit under the Community Enterprise Investment Tax Credit;
$29.5 million less in personal taxes:
• introducing the Primary Caregiver Tax Credit, which provides up to $1,020 in a refundable income tax credit for a person who voluntarily provides care to a person who qualifies for level 2, 3 or 4 home care;
• reducing the first bracket to 10.8 per cent from 10.9 per cent, increasing the middle bracket threshold to $31,000 from $30,544 and increasing the top bracket threshold to $67,000 from $66,000;
• increasing the basic personal amount, the spousal amount and the eligible dependent amounts by $100, eliminating 2,100 Manitobans from the tax rolls; and
• increasing the refundable Personal Tax Credit by at least 2.6 per cent, which benefits 281,000 lower income Manitoba households.
Other tax incentives beginning in 2009 include:
• commercial building owners who install district geothermal service systems are eligible for a grant up to $150,000 and can receive up to 10 per cent of the value of their installed systems in tax credits, and
• Manitobans homeowners who install geothermal ground source heat pump systems that meet ISO standards can receive up to $ 3,000 in incentives, which includes a $2,000 refundable Green Energy Equipment Tax Credit and a $1,000 grant.
“The tax measures taking effect Jan. 1 reflects our government’s commitment to continue to reduce personal, corporate and small business tax in order to grow the economy and better position the province to weather the impacts of a global economic slowdown,” said Selinger. “These reductions will also continue to ensure that Manitoba remains an affordable place to live, work, invest, raise a family and operate a business.”
