2022 Newfoundland and Labrador Budget Highlights

On April 7, 2022, Newfoundland and Labrador Deputy Premier and Minister of Finance Siobhan Coady tabled the 2022 Budget. Titled Change is in the Air, the Budget includes measures to help families with the rising cost of living and to invest in economic growth through responsible financial management. No provincial tax or fee increases were announced in this Budget.

A. Income Tax Measures

Business Tax Measures

Corporate Tax Rates

No new corporate income tax rate changes were announced in this year’s Budget. The current corporate income tax rates for 2022 are summarized below:

M&P – Manufacturing and Processing

Manufacturing and Processing Investment Tax Credit

Budget 2022 announced a new 10 percent Manufacturing and Processing Investment Tax Credit to support the manufacturing, fishery, farming, and forestry sectors in capital equipment investments.

Green Technology Tax Credit

A new green technology tax credit of 20 percent is proposed to help businesses with capital costs for green activities, such as equipment for energy conservation, clean energy generation, and efficient use of fossil fuels.

All Spend Film and Video Production Tax Credit

Budget 2022 announced a new All Spend Film and Video Production Tax Credit. The 30-percent tax credit will apply to total qualifying production costs, with a maximum tax credit of $10 million annually per project.

Personal Tax Measures

Personal Tax Rates

No new personal income tax rate changes were announced in this year’s Budget. The top marginal personal income tax rate for Newfoundland and Labrador is 21.80 percent for 2022. The current top combined federal and Newfoundland and Labrador marginal rates for 2022 are summarized below:

Pre-Natal Infant Nutrition Supplement

Formerly the Mother Baby Nutrition Supplement, this amount is proposed to increase to $150 from $100 for low-income pregnant mothers and for families with children under age one. The one-time payment provided during the first month of the baby’s birth is also proposed to increase from $100 to $150.

Newfoundland and Labrador Income Supplement

The Province announced a $6.8 million increase to the Newfoundland and Labrador Income Supplement. It is estimated that more than 160,000 families and individuals will receive an increase of up to 10 percent in the amounts under this supplement. Eligible individuals will need to file their annual income tax return to receive the benefit.

Provincial Seniors’ Benefit

The Seniors’ Benefit, which is available to those aged 65 years or older, is proposed to increase by $6.5 million. The benefit received by seniors will increase by 10 percent to a maximum of $1,444 annually.

B. Indirect Tax Measures

Retail Sales Tax on Home Insurance

Effective Budget Day, the 15-percent Retail Sales Tax on home insurance is proposed to be eliminated for one year.