2025 British Columbia Budget Highlights

British Columbia Minister of Finance Brenda Bailey tabled the province’s 2025 budget on Tuesday, March 4, 2025. This year's budget, Standing for a Strong B.C., aims to build on the province’s strengths and is focused on building a stronger economy through major projects, attracting investment and good-paying jobs, and prioritizing investments in those key public services people rely on.

No changes to corporate or personal income tax rates were announced.

Personal income tax measures

BC Family Benefit extended

Effective January 1, 2025, the BC Family Benefit is amended to continue payments for six months following the death of a child, which harmonizes with the federal change to the Canada Child Benefit.

Small Business Venture Capital Tax Credit annual limit increased

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 to $300,000 (from $120,000).

Training Tax Credit for Apprentices extended and amended

The training tax credit for individuals will be extended until the end of 2028 (from 2025).

Effective April 1, 2025, the training tax credit will also be amended so that eligible 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.

Climate Action Tax Credit unchanged

The climate action tax credit amounts will remain unchanged at the 2024-2025 rates despite the annual increase to the carbon tax of $15/tonne.

The current tax credit amounts are $504 for an adult, $252 for a spouse or common-law partner, and $126 per child.

Business income tax measures

Film Incentive BC and Production Services Tax Credits increased

The basic Film Incentive BC tax credit will increase to 40 percent (from 35 percent) and the basic production services tax credit will increase to 36 percent (from 28 percent). These new rates will apply to productions with principal photography beginning on or after January 1, 2025.

Major Production Tax Credit introduced

The budget introduces a new major production tax credit available to claimants with B.C. production costs greater than $200 million. The credit is equal to two percent of a corporation’s accredited qualified B.C. labour expenditures in respect of the major production and will be available upon completion of the production.

The new major production tax credit is available for productions with principal photography starting on or after January 1, 2025.

Regional and Distant Location Tax Credits amended

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 temporary clean buildings tax credit is extended by one year to March 31, 2026, to support energy-efficient building upgrades.

Interactive Digital Media Tax Credit increased and made permanent

The interactive digital media tax credit will increase to 25 percent (from 17.5 percent) for eligible salaries and wages paid in B.C. on or after September 1, 2025. The budget also proposes to make the credit permanent (originally scheduled to end by September 1, 2028).

Other tax measures

Provincial sales tax exemption for used zero-emission vehicles eliminated

The exemption for used zero-emission vehicles was initially introduced in Budget 2022. It was set to expire in 2027. However, it will now end earlier than originally scheduled. 

Effective May 1, 2025, used zero-emission vehicles will be subject to provincial sales tax.

New Speculation and Vacancy Tax measures

Effective January 1, 2026, the Speculation and Vacancy Tax rates will increase as follows:

• For Canadian citizens and permanent residents who are not untaxed worldwide earners, and others currently taxed at 0.5 percent, the rate will increase to one percent
• For foreign owners, untaxed worldwide earners, and others currently taxed at two percent, the rate will increase to three percent

The new rates will not affect taxpayers declaring based on property use in 2025 or earlier.

In conjunction with the rate increase, the non-refundable speculation and vacancy tax credit for British Columbia residents will increase to $4,000 (from $2,000).

Additionally, 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.

New Property Transfer Tax exemption for First Nations

Effective May 21, 2024, First Nations recognized as bands under the federal Indian Act will be exempt from property transfer tax when transferring legal ownership of a property to the First Nation, provided the property is already beneficially owned by the First Nation. This amendment addresses tax consequences arising from 2024 changes that eliminated legal barriers to First Nations directly owning property.

Small Business Venture Capital Program budget temporarily increased

For the 2025 to 2027 calendar years, the total annual tax credit value available under the small business venture capital program will temporarily increase to $53.5 million (from $38.5 million).

Of this amount, $10 million will be equally allocated between investment streams for new businesses, clean technology, interactive digital media, and businesses located outside the Metro Vancouver and Capital regional districts. The remaining $5 million will be made available for investments in all businesses eligible for the program.

New Modern Treaty First Nations’ Property Tax Exemption introduced

Effective for the 2026 taxation year, lands and improvements in rural areas within a treaty-designated foreshore area, owned or held by the Modern Treaty First Nation or its public institutions, will be exempt from property tax.

This exemption aligns with the property tax treatment of other local governments, which are typically exempt from property taxes in areas where they exercise governance authority.

New exemption for eligible First Nations’ properties used for certain purposes

Also effective for the 2026 taxation year, the Province will exempt First Nations’ interest in eligible properties from the annual rural property tax. This exemption will apply to properties assessed as having no present use or those used for cultural or community purposes.

Other tax technical measures

Budget 2025 includes other technical amendments to various tax acts. Highlights include amendments to:

• The Speculation and Vacancy Tax Act to accept opinions and documents completed by nurse practitioners for health-related exemptions, effective January 1, 2019.
• The Provincial Sales Tax Act to clarify that where a vehicle is brought into B.C. and a person registers it for use, the PST payable on that vehicle is reduced by the amount of the B.C. sales tax the person previously paid on that vehicle. This is effective on royal assent.
• The Income Tax Act to clarify when the Minister must start paying interest on any refunds of the natural gas tax credit because of a subsequent assessment by the Canada Revenue Agency. This is effective on royal assent.
• The Income Tax Act to update certain references to the federal Income Tax Act for federal changes to corporate instalment provisions in respect of new federal tax credits.
• The Income Tax Act is also amended to clarify that the income of an ineligible spouse is included in the calculation of adjusted income for the refundable sales tax credit, effective January 1, 2013.

Full details of the 2025 BC Budget can be found here.