2025 Provincial Budget Highlights

March 7, 2025

On March 4^th, 2025, BC’s Ministry of Finance released the Province’s 2025 Budget. A summary of the key BC Budget highlights is provided below.

Housing Measures

Effective January 1, 2026, the rate for Canadian citizens and permanent residents who are not untaxed worldwide earners, and others who are currently taxable at 0.5% under the Speculation and Vacancy Tax Act, will increase to 1%. The rate for foreign owners and those who are currently taxed at 2% will increase to 3%. The new rates will apply based on the use of residential properties during the 2026 calendar year and onward.

Business income tax measured announced in the Budget include the following:

Effective September 1, 2025, the interactive digital media tax credit will increase from 17.5% to 25% for eligible salaries and wages paid in BC on or after September 1, 2025. This program is also being made permanent.
The deadline for qualifying expenditures for the clean buildings tax credit is extended by one year to March 31, 2026.
For productions with principal photography beginning on or after January 1, 2025, the basic Film Incentive BC tax credit is increased to 40 percent (from 35%) and the basic production services tax credit is increased to 36% (from 28%).
Effective January 1, 2025, a new major production tax credit is available to production services tax credit claimants with BC production costs greater than $200 million. The credit is available for productions with principal photography starting on or after January 1, 2025 and is equal to 2% of a corporation’s accredited qualified BC labour expenditures in respect of the major production.
Effective January 1, 2025, for animation productions under the Film Incentive BC tax credit or the production services tax credit, the regional and distant location tax credits are amended to allow animation productions with brick-and-mortar presence in a regional or distant location to claim the supplemental credits. This is available for principal photography starting on or after January 1, 2025.
The new mine allowance under the Mineral Tax Act will be extended for five years to the end of 2030.

Personal income tax measured announced in the Budget include the following:

Effective for 2025 and subsequent tax years, the small business venture capital tax credit annual limit is increased from $120,000 to $300,000. This applies to investments made on or after March 4, 2025.
The training tax credit for individuals will be extended for three years to the end of 2028.

Effective May 1, 2025, used zero-emission vehicles will be subject to provincial sales tax.