Thank you, Mr. Chair.
I will provide a short overview of each of these measures in the order in which they appear in the bill.
The first measure in part 1 provides a temporary enhanced capital cost allowance, which is essentially tax depreciation in respect of the purchase of new zero-emission vehicles. These are fully electric, fully powered by hydrogen or a plug-in hybrid with a battery capacity of at least 15 kilowatt hours. It also increases the capital cost limit for zero-emission passenger vehicles to $55,000, in terms of what can be depreciated, from the existing limit of $30,000 for passenger vehicles.
The second measure removes the requirement that property be of national importance in order to qualify for the enhanced tax incentives for donations of cultural property, while retaining the requirement that the property be of outstanding significance.
The next measure introduces further enhanced rates of capital cost allowance. It provides an enhanced 100% capital cost allowance rate, which provides a full first-year deduction in respect of certain manufacturing and processing machinery as well as certain green-energy equipment. In addition, it provides, effectively, three times the normal first-year allowance for other sorts of depreciable property, that's to say, almost every other type of depreciable capital property.
The next measure relates to kinship care programs. It ensures that the receipt of amounts under a provincial kinship care program will not adversely affect entitlement to the Canada workers benefit. In addition, it ensures that such amounts are not included in computing a recipient's income and do not reduce entitlement or include it for purposes of determining means-tested benefits.
The next measure removes taxable income as a factor in determining a Canadian-controlled private corporation’s entitlement to the enhanced scientific research and experimental development tax credit, while retaining the taxable capital factor that is currently in place.
The next measure relates to providing support for Canadian journalism. In particular, it provides three separate benefits. First, it allows registered journalism organizations to be qualified donees for income tax purposes, which, in addition to providing an exemption from income tax, allows them to issue charitable donation receipts. Second, it introduces a 25% refundable tax credit on salary or wages paid to eligible newsroom employees for certain qualified Canadian journalism organizations. This credit will be subject to a cap on labour costs of $55,000 per eligible employee, which works out to a $13,750 tax credit benefit per employee. Third, it provides a temporary, non-refundable 15% tax credit on amounts paid by individuals in respect of certain digital news subscriptions.
The next measure introduces the Canada training credit, which is a refundable tax credit providing support for eligible training fees for individuals between the ages of 25 and 64. This credit accumulates at an amount of $250 per eligible year in a notional account up to a lifetime limit of $5,000. The credit can be applied against up to half the cost of eligible training fees.
The next measure updates a cross-reference in the Income Tax Act relating to the use of cannabis for medical purposes, to reflect the currently existing regulations that apply to cannabis.
The next measure applies in respect of the rules in the Income Tax Act that prevent the inappropriate multiplication of access to the small business deduction. Currently there is an exception that applies where farming or fishing products are sold to an arm's-length co-operative organization. This measure would expand that exemption, providing a benefit to affected farmers in any case where a farmer or a fisher sells products to an arm's-length corporation, and removing the requirement that the purchaser be a co-operative corporation.
The next measure extends the currently existing mineral exploration tax credit for an additional five years. This credit provides a 15% credit in respect of certain grassroots mineral exploration.
The next measure applies in respect of certain communal organizations and in particular it ensures that income earned in a deemed trust that arises in respect of those communal organizations retains its character as it is flowed out through the deemed trust to the members of the congregation.
The next measure relates to the homebuyers' plan, and has two components. First, it increases the homebuyers' plan withdrawal limit from $25,000 to $35,000. In addition the measure also provides that, subject to certain conditions, individuals who experience the breakdown of a marriage or common-law partnership can be permitted to participate in the homebuyers' plan even if they do not meet the first time homebuyer requirement.
The next measure relates to liability for income tax in respect of income earned in a tax-free savings account. Generally, income earned in TFSA is tax free with two important exceptions. One is income from carrying on a business in the TFSA. Most commonly, that can be thought of as day-trading types of activities. Currently, TFSAs are liable to tax on income from carrying on a business. The trustee of the trust, generally the financial institution providing it, is jointly and severally liable. This measure would cap the liability of the trustee at the amount of assets in the trust. In addition, it would extend joint and several liability to the TFSA holder, who would be in the best position to know whether or not the TFSA is carrying on a business.
The next measure relates to relief from overpayments of salary or wages. It is intended to help alleviate cash flow issues where an amount is paid to an employee and an amount is withheld in respect of the salary or wages and remitted to the government. Under the current tax rules, the employee would have to reimburse their employer the gross amount of the payment and apply to the Canada Revenue Agency for a refund of the taxes that have been withheld and remitted. This allows the employee to return to the employer only the net amount they received, and allows the employer to obtain the refund of the withheld taxes from the Canada Revenue Agency, thus helping to alleviate the cash flow issued for the amount that had been withheld but not received by the employee.
The next measure relates to providing enhanced capital cost allowance rates under clauses 43.1 and 43.2 of the regulations, and these are at rates of 30% and 50%. These are extended in respect of eligible electric vehicle charging stations and a broader range of electrical energy storage equipment. It's important to notice an accelerated 100% capital cost allowance rate is going to be provided in respect of the accelerated investment incentive I'd mentioned earlier. That would apply in respect of this measure as well. They would have a permanent 30% or 50% capital cost allowance rate but also be eligible for the temporary accelerated investment incentive measure.
