Commercial electricity customers in British Columbia can expect an estimated 4.6 per cent reduction on consumption costs over a 12-month period, to be applied on their bills beginning this April. The one-year program is promised in the newly released 2024 provincial budget, which also includes a handful of tax relief measures that may apply for commercial property owners or service providers to the industry.
Province-wide, approximately $370 million is allotted for what the B.C. government has dubbed the electricity affordability credit. Average savings for residential hydro account holders are projected at $100 for the year, while small businesses are in line for an average cost reduction of $400.
In the multifamily sector, the budget introduces a full exemption from property transfer tax on new purpose-built rental housing acquired between January 1, 2025 and December 31, 2030. This applies only on the first transaction of the property in the period prior to occupancy.
“This is a temporary measure that will help get more rental homes built in communities around B.C.,” Finance Minister Katrine Conroy said as she tabled the budget in the provincial legislative assembly late last week.
The six-year window for full exemptions follows the partial relief that came into effect for 2024. It eliminates the extra 2 per cent surcharge that the B.C. government applies on residential transactions for the portion of sales value that exceeds $3 million. To qualify, properties must contain at least four separate apartment units that have not previously been occupied as a residence.
Multifamily and commercial building owners have been given an extra six months to complete projects and submit necessary documentation to claim a 5 per cent rebate on energy efficiency improvements eligible for B.C.’s clean buildings tax credit. Under program rules, qualifying expenditures must be made by April 1, 2025.
However, claimants are additionally required to engage a third-party engineer, architect or certified energy advisor to verify the achieved energy savings and to file that attestation with the Ministry of Finance. The 2024 budget confirms the deadline for that latter step has been extended by six months, resetting it for September 30, 2027.
The budget also announces that property owners/managers with in-house skilled trades and various service providers to the commercial real estate industry can continue to claim refundable tax credits for apprentices’ salaries until the end of 2027. That training tax credit, which was first introduced in 2007, had been scheduled to expire this year.
As well, producers of renewable energy from solar, wind, tidal or other water sources will qualify for a provincial sales tax exemption on purchases of production machinery and equipment as of February 23, 2024. Previously, the sales tax exemption applied only for the manufacturing, mining, logging and oil and gas industries.
Finally, the budget clarifies that individuals who are bankrupt are eligible for the renter’s tax credit, which became available for the 2023 tax year.
