On November 5, 2020, Ontario’s Finance Minister Rod Phillips released details of the Ontario budget, an action plan highly focused on spending while also declaring 2021 as the year of the staycation in Ontario. The spending and incentives target a wide variety of individuals and businesses. Some key highlights of the plan include:
- Another round of payments to parents, with $200 per child (up to 12 years old), or $250 per children and youth (up to 21 years old) who have special needs. These payments are intended to assist with COVID-19 costs such as technology and educational supplies for online learning;
- A new tax credit for seniors (or supporting family members) for 2021. This provides 25% refundable credit on eligible home renovations to improve safety and accessibility;
- Electricity subsidies for medium and large industrial and commercial employers over three years. This subsidy is expected to be provide approximately 14-16% reduction on average;
- Property tax reductions through reducing rates of Business Education Tax (a component of property taxes for Ontario business properties) and support to municipalities in property tax cuts for small businesses; and,
- Changing the Employer Health Tax (EHT) exemption at $1 million. This change was previously announced as only a temporary measure, with this plan making the change permanent.
Finally, the plan proposes to bolster the hard-hit Ontario tourism industry by providing Ontario residents with 20% support for eligible Ontario tourism expenses. Details are still coming on how this support will be provided and what will qualify as eligible expenses. Still, the government is encouraging Ontarians to make the province yours to (safely) discover.
You can find further details at https://news.ontario.ca/en/release/59065/ontarios-action-plan-protect-support-recover.
Want to learn more about the CEBA? Check out our recent blog The Fine Print of the CEBA.