The British Columbia Budget 2024, presented by Finance Minister Katrine Conroy, aims to support economic growth, enhance environmental sustainability, and address pressing social challenges. The budget introduces several changes in tax policies, housing initiatives, and investments in health care, education, and climate response. Below is a detailed breakdown of the major components of the 2024 BC budget:
Addressing Housing and Property Tax Reforms
Home-Flipping Tax
In an effort to tackle speculative activity in the real estate market, the 2024 budget introduces a home-flipping tax. Effective January 1, 2025, this tax will apply to properties sold within two years of purchase, with a 20% rate for properties sold within 365 days and decreasing rates for properties sold between 366 and 730 days. Exemptions will be available for certain life circumstances such as divorce, death, relocation for work, or personal safety concerns. This measure is aimed at stabilizing BC’s housing market by reducing short-term speculative buying, which has been linked to housing price inflation(
Crowe)(
MNP.ca).
Property Transfer Tax Exemptions
To further address housing affordability, the property transfer tax exemption threshold for first-time home buyers will be increased. Starting April 1, 2024, the exemption will apply to homes valued at up to $835,000, up from the previous $500,000. For newly built homes, the exemption threshold will increase to $1,100,000, allowing buyers to benefit from a maximum $8,000 tax saving(
Global Tax News). This change is expected to help more first-time buyers enter the housing market by lowering initial transaction costs(
KPMG).
Speculation and Vacancy Tax Amendments
The budget also expands the Speculation and Vacancy Tax to cover leaseholders of residential properties. From January 1, 2024, leaseholders who control how a property is used will be responsible for paying the tax, shifting the burden from property owners. This measure ensures that the tax targets those profiting from unused or underutilized residential properties, aligning with the government’s goal to increase housing availability(
Personal Tax Credits and Benefits
BC Family Benefit Bonus
A key initiative in the budget is the introduction of the BC Family Benefit Bonus, which will increase the existing BC Family Benefit by 25% starting July 2024. This temporary enhancement will provide additional support for low- and middle-income families during the 2024-25 fiscal year. On average, households will receive $445 over the 12-month period(
MNP.ca)(
Mentor Works). This bonus aims to help families cope with rising living costs while supporting broader affordability goals in the province.
Climate Action Tax Credit
The Climate Action Tax Credit, which offsets the impact of carbon pricing on low- and moderate-income households, will see an increase in 2024. The maximum annual payment for adults will rise from $447 to $504, with additional increases for spouses and children. Income thresholds for the credit will also be adjusted to ensure that more households remain eligible(
MNP.ca)(
Business Tax Reforms and Incentives
Employer Health Tax Changes
Starting January 2024, the employer health tax (EHT) exemption threshold will increase from $500,000 to $1 million. This means that businesses with payrolls below $1 million will no longer have to pay the EHT, while those with payrolls between $1 million and $1.5 million will face a higher notch rate of 5.85%(
Crowe)(
Mentor Works). This change is expected to benefit approximately 90% of businesses in the province, reducing their tax burden and supporting job creation.
Training Tax Credits Extension
To support workforce development, the budget extends the training tax credit for employers until 2027 and for individuals until 2025. This credit, which has played a key role in encouraging apprenticeship and skills training in sectors such as construction and technology, will continue to incentivize businesses to hire apprentices, especially those from underrepresented groups such as First Nations(
Clean Buildings Tax Credit Extension
Recognizing the importance of energy efficiency in reducing emissions, the Clean Buildings Tax Credit has been extended until September 2027. This refundable credit is available for retrofitting commercial and multi-unit residential buildings to meet energy efficiency targets. The government aims to accelerate the adoption of sustainable building practices by providing financial incentives for retrofits(
Investments in Clean Energy and Environmental Sustainability
CleanBC Initiatives
A significant portion of the budget, $318 million, is allocated to CleanBC initiatives. These funds will support programs focused on reducing greenhouse gas emissions, such as grants for electric vehicle (EV) charging infrastructure, energy-efficient building retrofits, and clean transportation projects(
Mentor Works). An additional $93 million will be directed toward emission reduction programs targeting low- and middle-income households, with $40 million set aside for heat pump rebates(
Critical Minerals Strategy
The budget also outlines a $24 million investment in the Critical Minerals Strategy, designed to support the exploration and development of essential minerals needed for clean technology, such as lithium and cobalt. This strategy is a collaboration between the provincial government, First Nations, and industries, and aims to strengthen BC’s position as a leader in the global clean technology supply chain(
Emergency Preparedness and Wildfire Response
Wildfire Prevention Funding
Following the devastating wildfires of 2023, the budget allocates $1.3 billion for wildfire prevention and climate resilience measures over the next four years. This funding will enhance the province’s capacity to prepare for and respond to climate-related emergencies, including wildfires, floods, and heat waves(
Mentor Works). The Forest Enhancement Society of BC will receive $60 million to expand wildfire response resources, including the recruitment and training of additional fire crews(
Education and Healthcare Investments
Post-Secondary Education Funding
The budget includes $6 billion in capital spending for post-secondary education, focusing on expanding facilities in health, science, trades, and technology fields. This investment is aimed at addressing the growing demand for skilled workers in key sectors of the BC economy(
Mentor Works)(
Crowe).
Healthcare Services Expansion
In response to increasing demand for healthcare services, the budget allocates $2 billion to support primary care, mental health, long-term care, and home care services. This includes the expansion of programs addressing substance abuse and mental health, as well as investments in infrastructure to improve access to healthcare in rural and remote areas(
Mentor Works). Additionally, starting in 2025, the province will introduce publicly funded in vitro fertilization (IVF) services, providing much-needed support to families seeking fertility treatments(
