The BC Government has released some funding programs to support the business community, and those businesses impacted by the recent circuit breaker provincial health orders.
“The Surrey Board of Trade has been at the forefront of the call to ensure that business supports for those affected industries are ready on day one of health and safety orders,” said Anita Huberman, CEO, Surrey Board of Trade. “We are pleased that the government has finally, and with streamlined efficiencies, opened a funding portal to help affected industries in addition to opening the PST rebate for capital investments for businesses to invest and recover. This is a policy win for the Surrey Board of Trade.”
“However, it must be recognized that circumstances for businesses continue to evolve, and through our involvement on two significant BC Government task forces, the Premier’s Economic Recovery Task Force and the Economic Recovery Minister’s COVID-19 Industry Engagement Council, we will continue to instigate action through ideas and policy proposals to help our members and the community of Surrey.”
The announcements are:
1. Minister Ravi Kahlon announced the new Circuit Breaker Business Relief Grant which will provide $50 million to help the 14,000 restaurants, bars, breweries, wineries, gyms and fitness centres affected by the March 30, 2021 provincial health orders. The new Circuit Breaker Business Relief Grant will provide affected businesses up to $10,000 in one-time funding to help with expenses like rent, insurance, employee wages, maintenance and utilities. The grant can also help cover unexpected costs that resulted from the restrictions, such as the purchase of perishable goods.
MORE INFORMATION: here.
2. The BC Increased Employment Incentive is a one-time refundable tax credit for employers which encouraged the creation of new jobs for BC workers or increases in payroll for existing low- or middle-income employees in the last quarter ending December 31, 2020. The tax credit is calculated at 15% of the amount that the employer’s eligible remuneration for the last quarter ending December 31, 2020 exceeds the employer’s eligible remuneration for the quarter ending September 30, 2020.
MORE INFORMATION: gov.bc.ca/employertaxcredit
3. The BC PST Rebate on Select Machinery and Equipment is a temporary provincial sales tax (PST) program that acts like a refund but is separate from the existing PST Refund process. Under this temporary program, corporations can apply to receive an amount equal to the PST they paid between September 17, 2020 and September 30, 2021 on qualifying machinery and equipment.
Highlights of the PST rebate for capital investments include:
· Incorporated businesses can recovery 100% of the PST on most machinery and equipment purchased between September 17, 2020 and September 30, 2021
· PST savings on a new zero-emission vehicle can be more than $3000
· Most non-consumable goods used in a business qualify for the rebate as long as they are:
o Described by the definitions found in Schedule II to the federal Income Tax Regulations, as they read on September 1, 2020, for capital cost allowance (CCA) classes 8, 10, 12, 16, 38, 43, 43.1, 43.2, 46, 50, 53, 54, and 55.
· PST paid on leases (both capital or operating leases) of qualifying machinery and equipment also qualifies
· Unincorporated entities such as sole proprietors cannot apply but can choose to become incorporated to take advantage of the program
MORE INFORMATION: gov.bc.ca/corporatePSTrebate
FUTURE RECOMMENDATIONS FOR GOVERNMENT:
“We urge the Government to increase the threshold for PST rebates to go back to the beginning of the pandemic when essential businesses were allowed to reopen and remain open. Many businesses needed to purchase equipment and machinery in order to remain viable throughout the pandemic.
“We also note that unincorporated entities such as sole proprietors cannot apply. If these businesses choose to incorporate, only machinery and equipment obtained after incorporation are eligible. This exclusion is detrimental to many important businesses that are driving economic growth. It is neglecting start-ups and small businesses.”
If businesses require assistance in getting incorporated, please contact the Surrey Board of Trade Business Centre at email@example.com.
Anita Huberman, 604-634-0342, firstname.lastname@example.org