2017-2018 New Brunswick budget highlights

On February 7, 2017, New Brunswick Finance Minister Cathy Rogers presented the 2017-2018 New Brunswick budget, “Listening and Getting Things Done”. The budget focused on three key priorities:

• Creating jobs;
• Growing the economy; and
• Securing and enhancing health care and education.

Fiscal/economic outlook

The 2017-2018 budget expects government revenues to increase by 4.1%, while expenses are expected to grow by only 3.6%. The deficit for the year is projected to be $191.9 million, which does not include a contingency reserve. The deficit is expected to be eliminated in its entirety by 2020-2021.

Real gross domestic product growth is projected to be 0.6% in 2017 which will be the third consecutive year of growth in the New Brunswick economy. Employment is expected to grow in 2017 and the minimum wage will increase to $11 per hour effective April 1, 2017.

The budget does not include any new taxes or tax increases. The following is a summary of the tax highlights contained in the budget.

Measures concerning individuals

Small business investor tax credit

The budget confirmed the previously announced increase in the small business investor tax credit for individuals from 30% to 50%. The eligibility was also expanded to include community economic development funds.

The New Brunswick small business investor tax credit provides a 50% (for investments made after April 1, 2015) non-refundable personal income tax credit of up to $125,000 per year (for investments of up to $250,000 per individual investor) to eligible individual investors who invest in eligible small businesses and/or community economic development corporations in the province. In addition, the New Brunswick small business investor tax credit provides eligible New Brunswick corporations and trusts a 15% non-refundable corporate income tax credit of up to $75,000 per year (for investments of up to $500,000).

Measures concerning business

Small business income tax rate

Effective April 1, 2017, the small business income tax rate will be lowered from 3.5% to 3.0%, with an overall goal of reducing the rate further to 2.5%.

For further details, we refer you to the Department of Finance website.

Your dedicated team:

National

Carl Allegretti
Canadian Tax Leader
416-601-6150

Albert Baker
National Tax Policy Leader
416-643-8753

Regional

Mark Noonan
Tax Director of Operations, Eastern
613-751-6688

New Brunswick

Sheri Penner
Partner, Tax
506-663-6637