May 9th Notice of Ways and Means Motion

Department of Finance news release regarding Bill C-13

Bill C-13 legislative information and status, on the Library of Parliament website - received Royal Assent on June 22, 2006. 

Department of Finance news release summarizing what is and is not included in the Notice of Ways and Means Motion

June 15, 2006 news release re Explanatory notes to the Budget Implementation Act 2006 now available

June 29, 2006 - Draft legislation for the enhanced dividend tax credit released

August 31, 2006 - Legislative proposals re remaining Budget 2006 income tax measures

October 16, 2006 - Notice of Ways and Means motion to implement August 31st legislative proposals and enhanced dividend tax credit

Bill C-28 legislative information and status, on the Library of Parliament website - received Royal Assent on February 21, 2007.

Apprenticeship job creation tax credit and apprenticeship grants.

Basic personal amounts - will be $8,839 (average) for 2006.  November 2005 budget had proposed $9,039 for 2006.

Canada student loans program - expanded eligibility.

Capital tax - eliminated as of January 1, 2006 instead of 2008.

Child care - Universal Child Care Plan

Child disability benefits enhanced.

Children's fitness tax credit - starting in 2007, non-refundable tax credit for up to $500 of eligible expenses for children under 16.

Corporate tax rate reduction and surtax elimination starting 2008.

Dividend tax credit revised for dividends paid by large Canadian corporations.

Donations of publicly-traded securities and ecologically sensitive lands to charities - elimination of capital gains taxes, effective for donations made on or after May 2, 2006.

Employment credit - on up to $250 of employment income for 2006 (x 15.25%), and up to $1,000 for 2007 (x 15.5%).

Fishers - capital gains - including lifetime capital gains exemption on qualified fishing property.

GST reduced to 6% effective July 1, 2006.

Investment tax credit carry-forward period increased to 20 years for credits earned in taxation years ending after 2005.

Non-capital loss carry-forward period increased to 20 years from 10 years for losses incurred in taxation years ending after 2005.

Pension income credit - effective for 2006, increased to $2,000 from $1,000.

Personal tax rates - lowest rate will be 15.25% for 2006.  November 2005 budget had proposed 15% for 2006.

Public transit tax credit

Refundable medical expense supplement - maximum will be increased from $750 in 2005 to $1,000 in 2006, with income threshold increasing to $22,140 for 2006.  Both amounts will be indexed thereafter.

Scholarship, bursary and fellowship income will be fully exempt from tax when the income is received in connection with a program for which the student will get an education tax credit.

Small business income tax rate reduction and threshold increase.

Textbook tax credit - effective for 2006 - non-refundable tax credit in addition to the education tax credit, based on $65/month for full-time attendance or $20/month for part-time attendance. 

Tradespeople's tool expenses - for eligible new tool costs in excess of $1,000 (on or after May 2, 2006), a deduction of up to $500 will be allowed for employed tradespeople.