There are several tax changes coming into effect on P.E.I. starting in the new year, including a higher tax credit for firefighters and Ground Search and Rescue (GSAR) first responders.
Changes begin Jan. 1 and include:
Increasing the firefighter tax credit by $500 from $500 to $1,000, providing free second vehicle registration for firefighters and expanding these benefits to include GSAR volunteers.
Increasing the basic personal amount by $750 to $11,250, with the spouse and equivalent-to-spouse amounts raised proportionately.
Increasing the low-income tax reduction by $1,000 from $19,000 to $20,000.
Reducing the small business rate to an overall rate of one per cent.
Reopening the Community Economic Development Business Program so eligible investors can receive a 35 per cent provincial tax credit of up to $7,000.
Lowering the interest rate on overdue property taxes to one per cent per month from 1.5 per cent.
"It puts us in a more competitive position, and it gives small businesses the ability to compete," Finance Minister Darlene Compton said of the business rate decrease, which went from two to one per cent.
"It's important because of the resiliency of small businesses put us in a good financial position before COVID and continues to do that … We all are trying to support local and we want that to continue."
According to the province, the changes to the volunteer firefighter and GSAR tax credit will be included in the upcoming 2022 provincial operating budget.
The free second vehicle registration for firefighters and GSAR will be administered by the Department of Transportation and Infrastructure through Access P.E.I.