On March 4, 2025, Brenda Bailey, British Columbia's Finance Minister, announced the 2025 British Columbia Budget. The Budget aims to protect jobs, support businesses and help British Columbians find affordable housing and gain improved access to government services such as health care and education. No changes were made to the existing provincial personal and corporate tax rates.
Crowe MacKay's tax experts summarize British Columbia's new tax measures below. If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
Business Tax Measures
Basic Credit for Film Incentive BC and the Production Services Tax Credit
The basic Film Incentive BC tax credit is increased from 35 per cent to 40 per cent of qualified BC labour expenditures, and the basic production services tax credit is increased from 28 per cent to 36 per cent of qualified BC labour expenditures. These new rates apply to productions with principal photography beginning on or after January 1, 2025.
Major Production Tax Credit
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 major production tax credit is available for productions with principal photography starting on or after January 1, 2025, and is equal to 2 per cent of a corporation's accredited qualified BC labour expenditures in respect of the major production. The credit will be available upon completion of the major production.
Regional and Distant Location Tax Credits Amended for Animation Productions
Effective January 1, 2025, the regional and distant location tax credits are amended to allow animation productions with a brick-and-mortar presence in a regional or distant location to claim the supplemental credits. The change applies for animation productions under either the Film Incentive BC tax credit or the production services tax credit with principal photography starting on or after January 1, 2025.
Clean Buildings Tax Credit Extended
The deadline for qualifying expenditures for the clean buildings tax credit is extended by one year to March 31, 2026.
Interactive Digital Media Tax Credit
Effective September 1, 2025, the interactive digital media tax credit will increase to 25 per cent for eligible salaries and wages paid in BC on or after that date. The program has also been made permanent.
Personal Tax Measures
BC Family Benefit Amended for Grieving Families
Effective January 1, 2025, the BC Family Benefit is amended to continue payments for six months following a child's death. This amendment harmonizes with the federal amendment to the Canada Child Benefit.
Small Business Venture Capital Tax Credit Annual Limit
Effective for 2025 and subsequent taxation years, the annual credit limit that an individual can claim for investments made on or after March 4, 2025, is increased from $120,000 to $300,000.
Training Tax Credit for Apprentices
The training tax credit for individuals will be extended for three years, to the end of 2028. The program is also amended effective April 1, 2025, so that those who are eligible for the enhanced credit for First Nations individuals or persons with a disability continue to receive the enhanced credit after the federal Apprenticeship Incentive Grant expires on March 31, 2025.
Property Transfer Tax
Exemption for First Nation Property Ownership
Effective May 21, 2024, a First Nation that is a band under the federal Indian Act is exempt from property transfer tax when transferring legal ownership of a property to the First Nation if the property is already beneficially owned by the First Nation. The exemption only applies to land beneficially owned by the First Nation prior to May 21, 2024.
Speculation and Vacancy Tax Act
New Speculation and Vacancy Tax Rates
Effective January 1, 2026, the Speculation and Vacancy Tax rate for Canadian citizens and permanent residents who are not untaxed worldwide earners, as well as others currently taxable at 0.5 per cent will increase from 0.5 per cent to 1 per cent. The rate for foreign owners and untaxed worldwide earners, as well as others currently taxed at 2 per cent, will increase from 2 per cent to 3 per cent.
The new tax rates will apply to the Speculation and Vacancy Tax payable by property owners based on the use of their residential properties during the 2026 calendar year and onward, and will not impact taxpayers declaring based on the use of their residential properties in 2025 or before. The non-refundable speculation and vacancy tax credit for residents of British Columbia will also be increased from $2,000 to $4,000.
Predator Ridge Excluded from Speculation and Vacancy Tax Specified Area
Effective retroactively to January 1, 2024, the Predator Ridge resort in the City of Vernon is excluded from the specified area for the Speculation and Vacancy Tax.
Provincial Sales Tax Act
Exemption for Used Zero-Emission Vehicles
Effective May 1, 2025, used zero-emission vehicles will be subject to provincial sales tax. The exemption for used zero-emission vehicles that was introduced in Budget 2022 was originally scheduled to end in 2027.
Small Business Venture Capital Act
Small Business Venture Capital Program Budget
Effective for the 2025 to 2027 calendar years, the total annual amount of tax credits that may be approved under the small business venture capital program is temporarily increased by $15 million to $53.5 million.
Other Technical Measures
Other technical changes were included in Budget 2025 to clarify amendments that were previously announced.
For more information on the 2025 British Columbia Budget, please visit the Government British Columbia's website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
