200607 Budget Highlights

first_img Current rate on used motor vehicles will be adjusted downward to 14 per cent effective July 1, 2006, to correspond with a 1 per cent decrease in the federal GST rate Threshold will increase from $350,000 to $400,000 Energy Efficiency Tax Credit Non-refundable tax credit equal to 25 per cent on eligible capital investments on renewable energy sources or energy efficiency investments made by the corporation up to 50 per cent of the large corporations capital tax payable in a given year Effective July 1, 2006, the motive fuel tax rate is removed on the biodiesel component of the motive fuel blend Liquor Licence Levy Graduate Tax Credit Tax Rate on Used Motor Vehicles Large Corporations Capital Tax Tax credit to be applied against the full value of the new $1,200 federal Universal Child Care Benefit Revenue neutral to the province Community Safety Criminal Intelligence Service Nova Scotia $690,000 Legal Aid $700,000 Youth Attendance Centre $450,000 Road safety enhancements $3.75 million -30- Note: For further 2006-07 budget information, see the Department of Finance website at www.gov.ns.ca/finance Child Care Benefit Tax Credit The 2006-07 budget is the fifth straight balanced budget, with a surplus of $71.9 million. Capital spending will increase to $383 million. Significant new dollars are allocated to energy cost relief and energy conservation. TAX CHANGES Personal Income TaxFour-year plan to provide increasing income tax relief by raising the basic personal exemption and value of all non-refundable tax credits Step 1. Starting in 2007, basic personal exemption to increase $250 annually for the next four years. Starting in 2007, non-refundable tax credits will increase proportionately by the same increase over this period. Step 2. Starting in 2011, full indexation will be implemented. Harmonized Sales Tax Capital Spending Elimination of the 3.5 per cent levy on the purchase of alcoholic products effective Jan. 1, 2007 Health, Health Promotion and Protection Wait times (Federal) $16.5 million Oncology drugs and specialists $15.9 million Pharmacare for Seniors $12.9 million Continuing Care $16.4 million Biodiesel Incentive $150 tax credit introduced last year will be increased to $500 per child Economic Development and Infrastructure Community Development Action Plan $250,000 Aquaculture Initiative $450,000 Ferry Portland to Yarmouth $1.25 million Provincial Capital Assistance Program $1.5 million Energy and Environment Nova Scotia Hospital Gas Conversion Project $1.2 million Smart Energy Conservation Program $10 million Environmental Home Assessment Program $850,000 Total capital spending approximately $383 million TCA: $335 million Capital grants to DHAs: $40 million Capital grants to Crown corporations: $8 million Highway spending increases by $34 million to $176.2 million Capital funding for land and parks increases to $19.5 million Capital funding for IT projects increases to $26.9 million Rate decrease from 0.275 per cent to 0.25 per cent Complete elimination of tax by July 1, 2012 Youth, Families and Communities Learning for Life II (Year 2) $20.2 million Low-Income Pharmacare $1.0 million Shelter rate increase $1.9 million Departmental Spending Increases Household Energy Rebate of the provincial portion of the HST Commencing Jan. 1, 2007 Applied to electricity, home heating fuel, natural gas, wood, and other fuel sources used to heat homes Healthy Living Tax Credit $1,000 tax credit for post-secondary graduates to offset Nova Scotia income taxes; upon graduation, students will have three years within which to use the credit. Small Business Tax Thresholdlast_img

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