first_img The Income Tax Act will also have some new provisions that will provide for creation of: a graduate tax credit, which will give $1,000 to reduce income taxes for students who have graduated from an eligible post-secondary program and who pay taxes in Nova Scotia a child care benefit tax credit, for parents and guardians of children under the age of six who receive the federal Universal Child Care Benefit. The credit will offset provincial taxes resulting from this taxable federal benefit a new energy efficiency tax credit against the large corporations capital tax to help promote energy conservation and the use of renewable energy. Several amendments are being made to the Provincial Finance Act: The Equity Tax Credit Act will be amended to clarify a number of provisions related to labour sponsored venture capital corporations, to ensure the investment provisions operate as intended. As well, the act will change parts of legislation around community economic development investment funds, to give the funds more financial stability as their community initiatives grow. Changes to the Revenue Act will exempt biodiesel produced in Nova Scotia from motive fuel tax and will reduce the tax on private sale of used motor vehicles from 15 per cent to 14 per cent, consistent with the one per cent federal reduction in GST. Changes to the Sales Tax Act will enable the provision of the household energy rebate, that will take eight per cent off energy and electricity bills for Nova Scotia households, starting in January 2007. Related regulations needed to implement the program will be introduced later in the year, following consultation with industry partners. Minor housekeeping changes are being made to the Nova Scotia Film Development Corporation Act, The Environment Act, the Summary Proceedings Act, and the Highway 104 Western Alignment Act. The Public Service Act is also being amended to formalize recent changes to government structure and department names. The Financial Measures Act does not contain measures related to changes in the federal dividend tax credit. Once the federal legislation is available, Nova Scotia will introduce matching legislation designed to ensure provincial revenues from dividend taxes stay neutral. A fact sheet on the 2006-07 Financial Measures Act is available at . Finance Minister Michael Baker introduced the Financial Measures Act today, July 5, to support a number of measures in the 2006-07 Nova Scotia budget, including tax relief for Nova Scotians. The act amends a total of 11 acts of the legislature. It is substantially the same as the legislation introduced on May 11, following the May 9 budget. “This legislation contains measures needed to give Nova Scotians the tax breaks announced in the budget,” said Mr. Baker. “We are taking steps to improve our economy, build a more competitive business environment, and help Nova Scotians keep more of their own money.” The Income Tax Act will be amended in several places to implement tax measures announced in the budget. Among the changes to existing income tax provisions are: increases in income tax exemptions and non-refundable tax credits for individuals phasing down and elimination in 2012 of the large corporations capital tax increases in the healthy living tax credit to $500 from $150 to help with the cost of registering children and youth in sport or recreation activities. to ensure that the province will be able to use federal Bill C48 funding for the specific purposes prescribed by the federal government, in the event the purposes differ from those outlined in the provincial Finance Act to give the province the authority to provide direct student loans from the consolidated fund, and to make sure that all revenues collected under the motive fuel tax, as well as net revenues from the Registry of Motor Vehicles, will be channeled directly into the construction and maintenance of highways. last_img read more