The Canadian province of British Columbia unveiled its 2025 budget on 4 March 2025.
The 2025 budget has no changes to corporate or personal tax rates. However, it proposes the following tax measures:
Increase in the speculation and vacancy tax rates
- The Budget 2025 increases the speculation and vacancy tax rates. The rate for foreign and untaxed worldwide owners rises to 3% of their home’s value from 2% and 1% from 0.5% for Canadian citizens and permanent residents. The increase takes effect on 1 January 2026.
- The budget proposes raising the non-refundable speculation and vacancy tax credit for British Columbia residents to CAD 4,000 from the current CAD 2,000.
Climate action tax credit
The climate action tax credit will continue to help lower-income British Columbians while the national carbon tax remains. All of the incremental revenue from the federally required 1 April 2025, carbon tax increase will continue to go back to people through the tax credit.
Canadian content and made-in-British Columbia (BC) productions
- British Columbia’s Film Incentive tax credits for Canadian productions will increase from 35% to 40%, effective retroactively from 1 January 2025.
- The production services tax credit for international projects in British Columbia will be increased from 28% to 36%.
- Projects with production costs exceeding CAD 200 million in British Columbia could be eligible for a new 2% major production tax credit.
Tax credits for regional animated productions
The Budget 2025 also updates rules for animated productions with a brick-and-mortar regional or distant location presence, allowing them to claim regional or distant location credits if eligible under the Film Incentive BC or production services tax credits, subject to additional rules.
