Volunteer Firefighters tax credit one of many tax changes to benefit Islanders
A number of tax changes, including a tax credit for volunteer firefighters and ground search and rescue (GSAR) first responders will be introduced in the new year.
The changes will be effective January 1, 2022 and include:
- increasing the firefighter tax credit 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 a new threshold of $11,250, with the spouse and equivalent-to-spouse amounts raised proportionately;
- increasing the Low-Income Tax Reduction threshold by $1,000 (to $20,000 from $19,000);
- reducing the Small Business Rate to an overall rate of 1 per cent, the lowest in the Atlantic provinces;
- reopening the Community Economic Development Business Program so eligible investors can receive a 35 per cent provincial tax credit of up to $7,000; and
- lowering the interest rate on overdue property taxes to 1 per cent per month from 1.5 per cent.
“These tax changes will help keep more money in the pockets of Islanders as we navigate and respond to the effects of the COVID-19 pandemic. Islanders have played an important role in our pandemic response and we want to help them save more money on taxes and continue to invest in their communities.”
- Finance Minister Darlene Compton
“Firefighters and ground search and rescue play a critical role in keeping our Island communities safe,” said Minister of Justice and Public Safety Bloyce Thompson. “They are our loved ones, friends and neighbours who put their lives at risk for us. I am proud that our government is offering them some financial relief for the difficult work they do in keeping the people of PEI safe and secure.”
Changes to the volunteer firefighter and GSAR tax credit will be included in the upcoming 2022 provincial operating budget. Free second vehicle registration for firefighers and GSAR will be administered by the Department of Transportation and Infrastructure through Access PEI Sites.
Department of Finance