First

Session, 51st General Assembly

Charles III, 2026

BILL 16

AN ACT TO AMEND THE

INCOME TAX ACT, 2000

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE CRAIG

PARDY

Minister of Finance and President of Treasury Board

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Income Tax Act, 2000 to

increase the basic personal amount;

increase the volunteer

firefighters' tax credit;

increase the search and rescue

volunteer tax credit; and

decrease the small business

corporate income tax rate.

A BILL

AN ACT TO AMEND THE INCOME TAX ACT, 2000

Analysis

S.9 Amdt .

Personal credits

S.17.3 Amdt .

Volunteer firefighters' tax credit

S.17.4 Amdt .

Search and rescue volunteer tax credit

S.40 Amdt .

Corporation tax

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2000 cI-1.1

as amended

(1) Subparagraph 9(1)(a)(

i) of the Income Tax Act, 2000 is amended by deleting the amount

"$7,410" and substituting the amount "$13,094".

(2) Subparagraph 9(1)(b)(iii) of the Act is amended by deleting the amount

"$7,410" and substituting the amount "$13,094".

(3) Paragraph 9(1)(

c) of the Act is amended by

deleting the amount "$7,410" and substituting the amount "$13,094".

(4) Subsection 9(5) of the Act is repealed and the

following substituted:

(5) Notwithstanding

section 6.1, the amount of

$13,094 referred to in subparagraphs 9(1)(a)(

i) and

9(1)(b)(iii) and paragraph 9(1)(

c) shall not be adjusted as prescribed in that

section before the 2027 taxation year.

(5) Section 9 of the Act is amended by adding

immediately after subsection (5) the following:

(6) Notwithstanding subsection 6.1(2), for the

purpose of calculating the tax payable by an individual for the 2027 taxation

year an amount expressed in dollars in subparagraphs 9(1)(a)(

i) and 9(1)(b)(iii) and paragraph 9(1)(

c) shall be adjusted

so that the amount referred to in subparagraphs 9(1)(a)(

i) and 9(1)(b)(iii) and paragraph 9(1)(

c) is the total of

(a) $15,000; and

(

b) the product obtained by multiplying

(

i) the amount referred to

in paragraph (a),

(ii) the consumer price index amount calculated

for the period and by the formula, as prescribed by regulation.

Section 17.3 of the Act is amended by deleting

the amount "$3,000" and substituting the amount "$6,000".

Section 17.4 of the Act is amended by deleting

the amount "$3,000" and substituting the amount "$6,000".

4. (1) Paragraph 40(3)(

a) of the Act is amended by

deleting the percentage "2.5%" and substituting the percentage

"2%".

(2) Paragraph 40(3)(

a) of the Act is amended by

deleting the percentage "2%" and substituting the percentage

"1.5%".

(3) Paragraph 40(3)(

a) of the Act is amended by

deleting the percentage "1.5%" and substituting the percentage

"1%".

(4) Subsection 40(4) of the Act is repealed and

the following substituted:

(4) Notwithstanding subsection (3), if a

corporation's taxation year includes January 1, 2026, and where in a taxation

year a corporation is eligible for a deduction under

section 125 of the federal

Act, the tax payable by that corporation under this Act for a taxation year is

equal to the total of

(

a) that proportion of 2.5% that the number of

days in the taxation year that are before January 1, 2026 is of the number of

days in the taxation year of an amount calculated by allocating to the

province, on the same basis as set out in the regulations made for the purpose

of the definition "taxable income earned in the year in a province"

in subsection 124(4) of the federal Act, a portion of the amount that is the

least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the

federal Act and allowed for the purpose of subsection 125(1) of the federal Act

in respect of the corporation for the year; and

(

b) that proportion of 2% that the number of days

in the taxation year that are after December 31, 2025 is of the number of days

in the taxation year of an amount calculated by allocating to the province, on

the same basis as set out in the regulations made for the purpose of the

definition "taxable income earned in the year in a province" in subsection

124(4) of the federal Act, a portion of the amount that is the least of the

amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act

and allowed for the purpose of subsection 125(1) of the federal Act in respect

of the corporation for the year.

(5) Subsection 40(4) of the Act is repealed and

the following substituted:

(4) Notwithstanding subsection (3), if a

corporation's taxation year includes January 1, 2027, and where in a taxation

year a corporation is eligible for a deduction under

section 125 of the federal

Act, the tax payable by that corporation under this Act for a taxation year is

equal to the total of

(

a) that proportion of 2% that the number of days

in the taxation year that are before January 1, 2027 is of the number of days

in the taxation year of an amount calculated by allocating to the province, on

the same basis as set out in the regulations made for the purpose of the

definition "taxable income earned in the year in a province" in subsection

124(4) of the federal Act, a portion of the amount that is the least of the

amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act

and allowed for the purpose of subsection 125(1) of the federal Act in respect

of the corporation for the year; and

(

b) that proportion of 1.5% that the number of

days in the taxation year that are after December 31, 2026 is of the number of

days in the taxation year of an amount calculated by allocating to the

province, on the same basis as set out in the regulations made for the purpose

of the definition "taxable income earned in the year in a province"

in subsection 124(4) of the federal Act, a portion of the amount that is the

least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the

federal Act and allowed for the purpose of subsection 125(1) of the federal Act

in respect of the corporation for the year.

(6) Subsection 40(4) of the Act is repealed and

the following substituted:

(4) Notwithstanding subsection (3), if a

corporation's taxation year includes January 1, 2028, and where in a taxation

year a corporation is eligible for a deduction under

section 125 of the federal

Act, the tax payable by that corporation under this Act for a taxation year is

equal to the total of

(

a) that proportion of 1.5% that the number of

days in the taxation year that are before January 1, 2028 is of the number of

days in the taxation year of an amount calculated by allocating to the

province, on the same basis as set out in the regulations made for the purpose

of the definition "taxable income earned in the year in a province"

in subsection 124(4) of the federal Act, a portion of the amount that is the

least of the amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the

federal Act and allowed for the purpose of subsection 125(1) of the federal Act

in respect of the corporation for the year; and

(

b) that proportion of 1% that the number of days

in the taxation year that are after December 31, 2027 is of the number of days

in the taxation year of an amount calculated by allocating to the province, on

the same basis as set out in the regulations made for the purpose of the

definition "taxable income earned in the year in a province" in subsection

124(4) of the federal Act, a portion of the amount that is the least of the

amounts calculated under paragraphs 125(1)(a), (

b) and (

c) of the federal Act

and allowed for the purpose of subsection 125(1) of the federal Act in respect

of the corporation for the year.

Commencement

(1) This Act, except for subsections 1(5), 4(2),

4(3), 4(5) and 4(6), is considered to have come into force on January 1, 2026.

(2) Subsections 1(5), 4(2) and 4(5) come into

force on January 1, 2027.

(3) Subsections 4(3) and 4(6) come into force on

January 1, 2028.

King's Printer