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On March 4, 2025, Brenda Bailey, British Columbia’s Finance Minister, announced the 2025 British Columbia Budget. The Budget aims to protect jobs, support businesses and help British Columbians find affordable housing and gain improved access to government services such as health care and education. No changes were made to the existing provincial personal and corporate tax rates.
Crowe MacKay’s tax experts summarize British Columbia’s new tax measures below. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
The basic Film Incentive BC tax credit is increased from 35 per cent to 40 per cent of qualified BC labour expenditures, and the basic production services tax credit is increased from 28 per cent to 36 per cent of qualified BC labour expenditures. These new rates apply to productions with principal photography beginning on or after January 1, 2025.
Effective January 1, 2025, a new major production tax credit is available to production services tax credit claimants with BC production costs greater than $200 million. The major production tax credit is available for productions with principal photography starting on or after January 1, 2025, and is equal to 2 per cent of a corporation’s accredited qualified BC labour expenditures in respect of the major production. The credit will be available upon completion of the major production.
Effective January 1, 2025, the regional and distant location tax credits are amended to allow animation productions with a brick-and-mortar presence in a regional or distant location to claim the supplemental credits. The change applies for animation productions under either the Film Incentive BC tax credit or the production services tax credit with principal photography starting on or after January 1, 2025.
The deadline for qualifying expenditures for the clean buildings tax credit is extended by one year to March 31, 2026.
Effective September 1, 2025, the interactive digital media tax credit will increase to 25 per cent for eligible salaries and wages paid in BC on or after that date. The program has also been made permanent.
Effective January 1, 2025, the BC Family Benefit is amended to continue payments for six months following a child’s death. This amendment harmonizes with the federal amendment to the Canada Child Benefit.
Effective for 2025 and subsequent taxation years, the annual credit limit that an individual can claim for investments made on or after March 4, 2025, is increased from $120,000 to $300,000.
The training tax credit for individuals will be extended for three years, to the end of 2028. The program is also amended effective April 1, 2025, so that those who are eligible for the enhanced credit for First Nations individuals or persons with a disability continue to receive the enhanced credit after the federal Apprenticeship Incentive Grant expires on March 31, 2025.
Effective May 21, 2024, a First Nation that is a band under the federal Indian Act is exempt from property transfer tax when transferring legal ownership of a property to the First Nation if the property is already beneficially owned by the First Nation. The exemption only applies to land beneficially owned by the First Nation prior to May 21, 2024.
Effective January 1, 2026, the Speculation and Vacancy Tax rate for Canadian citizens and permanent residents who are not untaxed worldwide earners, as well as others currently taxable at 0.5 per cent will increase from 0.5 per cent to 1 per cent. The rate for foreign owners and untaxed worldwide earners, as well as others currently taxed at 2 per cent, will increase from 2 per cent to 3 per cent.
The new tax rates will apply to the Speculation and Vacancy Tax payable by property owners based on the use of their residential properties during the 2026 calendar year and onward, and will not impact taxpayers declaring based on the use of their residential properties in 2025 or before. The non-refundable speculation and vacancy tax credit for residents of British Columbia will also be increased from $2,000 to $4,000.
Effective retroactively to January 1, 2024, the Predator Ridge resort in the City of Vernon is excluded from the specified area for the Speculation and Vacancy Tax.
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.
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