Province announces new rebate, tax cut for businesses

The province has announced more assistance for businesses affected by the COVID-19 pandemic.

The Strong Recovery Adaptation Rebate (SRAR) will be available to businesses that have had to adapt their business models during the pandemic, such as changing the use of square footage, installing physical infrastructure to comply with COVID-19 mitigation guidelines or upgrading technology.

Eligible businesses will receive a rebate of 50 per cent to a maximum of $5,000 for a $10,000 expenditure, with amounts being determined based on business expenditures for changing business models to adapt to the current environment.

To qualify, a business must: employ fewer than 100 people; have or will incur expenses to adapt their business between April 1, 2020 and Feb. 28, 2021; plan to continue operating; and have experienced at least a 30 per cent revenue drop compared to 2019.

More information can be found on the province's website.

GOVERNMENT LOWERING SMALL BUSINESS TAX

The government has announced it is reducing the province's small business income tax rate to zero for the next two years.

According to a government news release, the small business corporate income tax rate drops from two per cent to zero effective Oct. 1, 2020. Beginning July 1, 2022, the rate will move to one per cent. On July 1, 2023, the rate will return to two per cent.

The amount small businesses can earn at the small business tax rate will remain at $600,000.