The Economic and Fiscal Update Implementation Act, 2021, is a wide-ranging bill that implements several economic and fiscal measures. It amends the Income Tax Act to introduce new and expanded tax credits. A new refundable tax credit is available for eligible businesses on qualifying ventilation expenses, helping them improve air quality. The travel component of the northern residents deduction is expanded, giving all northern residents the option to claim up to $1,200 in eligible travel expenses. The School Supplies Tax Credit is increased from 15% to 25%, and eligibility expands to include electronic devices used by eligible educators. A new refundable tax credit is introduced to return fuel charge proceeds to farming businesses in backstop jurisdictions.
This bill also introduces the Underused Housing Tax Act, which implements an annual 1% tax on the value of vacant or underused residential property directly or indirectly owned by non-resident non-Canadians. This part of the bill sets out the rules for establishing owners' liability for the tax, applicable reporting and filing requirements, and modern administration and enforcement provisions. A six-year limitation period is established for the recovery of amounts owing under the Canada Emergency Business Account program.
Parts of the bill authorize specific payments from the government. Payments are authorized to support ventilation improvement projects in schools, coronavirus disease 2019 (COVID-19) proof-of-vaccination initiatives, and for COVID-19 tests. Finally, the bill amends the Employment Insurance Act to specify the maximum number of weeks for which benefits may be paid in a benefit period to certain seasonal workers.
Taxation
This bill changes some of the rules around taxes. It introduces a new tax credit for businesses to improve air quality. It also makes changes to the northern residents deduction, the school supplies tax credit, and introduces a new tax credit related to fuel charges for farming businesses. The bill also introduces an Underused Housing Tax, which puts a 1% tax on vacant or underused homes owned by non-resident non-Canadians.
Spending
This bill allows the government to spend money on several programs. It authorizes payments for improving ventilation in schools, supporting COVID-19 proof-of-vaccination programs, and buying COVID-19 tests. The bill specifies the maximum amounts that can be spent on each of these initiatives.