FBC – Canada's Small Business Tax Specialist

 Budget 2010 forecasts deficits of $4.7 billion for 2010-2011 and $1.1 billion for 2011-2012.  A return to a balanced budget and a surplus of $505 is forecasted for 2012-2013.  The deficits will be offset by transfers from the Sustainability Fund, as will the forecast deficit of $3.6 billion for 2009-2010. 

No tax increases or new taxes were announced by the government.  The following is a summary of the tax-related measures contained in the budget.  

Indexation – Alberta continues to index its personal tax system for inflation.  As a result, personal tax credits will increase by 0.3% for the 2010 tax year reflecting low inflation for 2009.   Basic personal and spousal amounts will rise to $16,825 in 2010, from $16,775 in 2009.

Alberta Family Employment Tax Credit - Indexation will also increase benefits for recipients of the Alberta Family Employment Tax Credit. Beginning in July 2010, payments will rise to $696 for one child, $1,329 for two children, $1,709 for three children and $1,836 for four or more children.  The income level at which the credit starts to phase out will also rise, to $33,974.

Education Property Taxes – In 2010-2011, education property tax rates will decrease by about 13.5%.  The residential/farm property tax rate will fall from $3.39 to $2.93 per $1,000 of equalized assessment, and the commercial  rate will fall from $4.98 to $4.31 per $1,000 of equalized assessment.

Phased-in Measures (previously announced)

Alberta Royalty Tax Credit (ARTC) (September 21, 2006) – The Alberta government announced that the province will discontinue its ARTC for corporations, individuals and trusts effective January 1, 2007.  All claims on eligible Alberta crown royalties paid or payable in respect of production before January 1, 2007 must be submitted within three years of the claimant’s tax year-end.  In the case of individuals, all claims must be submitted within three years from the end of the calendar year.  ARTCs are claimed directly from Alberta Finance, Tax and Revenue Administration (TRA) by individuals, estates and trusts on form AT60.

Alberta Energy Efficient Rebate Program (2009 Alberta Budget) – A new three-year provincial consumer rebate program was introduced for energy efficient purchases.  Cash rebates are available to existing homeowners who improve their energy efficiency, to new home buyers who purchase energy efficient homes and to taxi operators who are transitioning their fleet to hybrid vehicles.  Eligible purchases for new home buyers and homeowners, which are retroactive to January 1, 2009 include: 

• new homes that achieve a high level of energy efficiency;
• energy evaluations for home owners to assess the current energy efficiency of their home and to measure its efficiency after home improvements are made; and
• efficient home heating systems, hot water heating systems, clothes washers and insulation upgrades.

 Taxi-operator hybrid rebates (up to $3,000) are retroactive to July 1, 2008.

The rebate program will be administered by Climate Change Central, a non-profit organization created in 2000.  For specific information on purchase eligibility and how to apply for a rebate, visit www.ClimateChangeCentral.com, or call toll-free at 1-888-537-7202.