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Newfoundland and Labrador 2024 Budget Highlights

Newfoundland and Labrador 2024 Budget Highlights

Synopsis
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Newfoundland and Labrador Minister of Finance Siobhan Coady tabled the province’s 2024 budget on Thursday, March 21, 2024.

Newfoundland and Labrador Minister of Finance Siobhan Coady tabled the province’s 2024 budget on Thursday, March 21, 2024. This year’s budget — titled Transforming: Our Health. Our Economy. Our Province. — includes investments in healthcare, seniors, housing, and poverty reduction. The budget also includes measures to support industry and business in the province.

No new taxes or tax increases were announced.

Reduction of small business tax rate

The budget announced a reduction in the small business tax rate from three percent to 2.5 percent effective January 1, 2024. The small business tax rate will apply on the first $500,000 of active business income for eligible businesses.

Once this measure is enacted, the expected corporate income tax rates for 2024 are as follows:

Area Small Business Corporation Rate* Small Business Corporation Threshold General Corporation Non-M&P Rate General Corporation M&P Rate*
Federal 9.0% $500,000 15.0% 15.0%
Newfoundland & Labrador 2.5% $500,000 15.0% 15.0%
Combined 11.5% 30.0% 30.0%

M&P – Manufacturing & Processing

* Rates applicable to income not eligible for the temporary rate reduction for manufacturers of qualifying zero-emission technology.

Previously announced measures

The budget announced the province’s intention to continue various tax incentive and benefit measures:

  • All Spend Film and Video Production Tax Credit for businesses — providing a refundable tax credit of up to 40 percent of eligible production costs with a maximum tax credit of $10 million annually per project
  • Green Technology Tax Credit for businesses — providing a refundable tax credit of 20 percent of specific capital costs for green activities such as equipment for energy conservation, clean energy generation, and efficient use of fossil fuels
  • Physical Activity Tax Credit for individuals — providing a refundable tax credit up to $348 for families for recreational and sporting activities
  • An 8.05 cent per litre reduction in the provincial tax on gas
  • Elimination of the retail sales tax on home insurance

More details and highlights of the 2024 Newfoundland and Labrador Budget can be found here.

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