Legislative Costing Notes

Cost Estimate of Bill C-3: An Act to amend the Criminal Code and the Canada Labour Code (ten days of paid sick leave per year to workers in the federally regulated private sector)

The bill legislates 10 paid sick days for employees in federally regulated workplaces who do not have access to at least 10 paid sick days, including the federally regulated private sector (FRPS) and employees of federal Crown corporations.
The PBO estimates that this amendment will generate a total revenue of $229 million over four years (from 2021-22 to 2024-25).

Canada Recovery Sickness Benefit (CRSB) – 28 Week Extension

As proposed by Bill C-2, the Canada Recovery Sickness Benefit (CRSB) would be extended by 28 weeks. This would result in the CRSB being in effect from September 27, 2020 to May 7, 2022, with the current extension beginning on October 24, 2021. As well, beginning the week of November 21, 2021, the number of weeks for which workers could claim the CRSB over the course of the program would increase from 4 to 6 weeks.

Canada Recovery Caregiver Benefit (CRCB) – 28 Week Extension

On October 21, 2021 the Government announced the extension of the eligibility of the Canada Recovery Caregiver Benefit (CRCB) by an additional 28 weeks as well as an additional two weeks to the maximum benefit period bringing it to a total of 44 weeks. The increase in the maximum number of benefit periods would begin after the week of November 20th, 2021.

Canada Emergency Rent Subsidy (CERS) – as extended by Order in Council 2021-0882 & as further extended by Bill C-2

Providing a rent subsidy to employers with reduced revenues.

We expect that the extension of the Canada Emergency Rent Subsidy (CERS) by Bill C-2 will result in an additional $676 million in subsidies being paid beyond those already approved by Order in Council 2021-0882. Of these additional subsidies, we expect $134 million to be paid under the Tourism and Hospitality Recovery Program, and $542 million to be paid under the Hardest-Hit Business Recovery Program. With this extension, we expect the gross cost of the CERS to be $8.3 billion. This represents a net cost to the federal government of $7.2 billion after accounting for corporate income tax recoveries.

Tax credit for recent graduates working in a designated region (Bill C-295)

This note was prepared at the request of Mr. Maxime Blanchette-Joncas, MP for Rimouski-Neigette—Témiscouata—Les Basques.

Introducing a tax credit of up to $3,000 per year, to a maximum cumulative amount of $8,000, for recent graduates working in a designated region. The designated regions are usually rural or remote. The tax credit will be available beginning in 2021.
The PBO estimates that the cost will peak at $129 million in 2023-24. It will then decrease slightly over the next two years before reaching a steady state in 2025-26. It will then grow at the same rate as the target population.

Immediate expensing for Canadian-Controlled Private Corporations (CCPC)

Introducing immediate expensing for eligible property (most capital property except generally long-lived assets) acquired by a CCPC on or after Budget Day and that becomes available for use before January 1, 2024, up to a maximum amount of $1.5 million per taxation year. The availability of other enhanced deductions under existing rules – such as the full expensing for manufacturing and processing machinery and equipment and for clean energy equipment, introduced in the 2018 Fall Economic Statement – would not reduce the maximum amount available under this new measure.

Extending the temporary enhancements to the Work-Sharing program for employers and employees affected by COVID-19

Temporary enhancements to the Work-Sharing (WS) program, currently effective between March 15, 2020 and September 26, 2021 will be extended for one additional year. This includes the extension of the maximum duration of a WS agreement from 38 weeks to 76 weeks, the waiving of the mandatory cooling off period for employers already using the WS program, the easing of the recovery plan requirements, and the expansion of eligibility criteria.

Update: Bill C-206 - Extension of the exemption for qualifying farming fuel to marketable natural gas and propane

Bill C-206 amends the Greenhouse Gas Pollution Pricing Act to extend the exemption for qualifying farming fuel to marketable natural gas and propane. This note updates a prior PBO costing to account for the federal carbon pricing backstop rising to $170/Gt by 2030.

Interest-free Loans for Home Retrofits

This measure offers up to $40,000 in interest-free loans to eligible homeowners and landlords to complete deep home retrofits recommended through an authorized EnerGuide energy assessment. 

This measure builds on a program put forward in the 2020 Fall Economic Statement, which provided funding for up to one million free energy audits and up to 700,000 grants of up to $5,000 for homeowners to complete energy efficient home improvements.

Increasing Old Age Security for Canadians 75 and Over

- Providing a one-time taxable payment of $500 in August 2021 to OAS pensioners who will be 75 or over as of June 2022. This will include seniors whose OAS pensions have been fully clawed back through the OAS Recovery Tax.
- Increasing OAS payments for pensioners 75 and over by 10 per cent on an ongoing basis as of July 2022.

Temporarily Waiving the One-week Waiting Period for Employment Insurance Claims

Waiving the waiting period for EI beneficiaries who establish a new claim between January 31, 2021, and September 25, 2021. This includes claims for regular, fishing, and special benefits and will allow people who apply during that period and return to work before exhausting all their weeks of entitlement to benefit from an additional week of income support. The maximum number of weeks of benefits will not change.

Maintaining flexible and uniform access to regular, fishing, and special EI benefits across all regions

Maintaining uniform access to EI regular and special benefits across all regions, through a 420-hour entrance requirement, with a 14-week minimum entitlement for regular benefits, and a new common earnings threshold for fishing benefits. This measure is assumed to come into force on September 26, 2021 and last for one year.

Modifications to federal financial assistance supports for students and recent graduates

Modifying federal student financial assistance, including support under the Canada Student Loans Program (CSLP).

Canada Workers Benefit (CWB) Enhancement

Broadening access to the CWB by increasing the phase-in rates and thresholds, as well as providing greater financial incentive for working couples. 

Canada Recovery Hiring Program

Provide eligible employers with a subsidy of up to 50 per cent on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021.  Employers must choose between the Canada Emergency Wage Subsidy (CEWS) or the Canada Recovery Hiring Program (CRHP).

Employment Insurance Sickness Benefits Extension

In Budget 2021 the Government of Canada proposed to increase the maximum number of weeks for which employment insurance sickness benefits may be paid due to a prescribed illness, injury, or quarantine to 26 weeks from 15 weeks. The extension is planned to come into effect summer 2022.

Digital services tax

Implementation of a new corporate income tax for companies offering digital services. The tax will take effect January 1, 2022. This measure is temporary and will only apply in the event that Canada does not reach a multilateral agreement on the taxation of digital services.

It will be a 3% tax on revenues collected by online marketplaces, social media, online advertising services, and user data sales and licensing services. This tax will apply to businesses with worldwide revenues of at least €750 million and Canadian revenues of more than $20 million.

Emissions Reduction Fund – Onshore

Introducing financial support for oil and gas companies to reduce methane emissions.

The Emissions Reduction Fund (ERF) – Onshore will offer up to $675 million in contributions to support capital projects that lower or eliminate routine venting of methane oil and gas operations.  The overall ERF includes a further $75 million for offshore oil and gas operations, which is outside the scope of the analysis.

Bill C-265: Employment Insurance Sickness Benefits Extension

Bill C-265 proposes to increase the maximum number of weeks for which employment insurance sickness benefits may be paid due to a prescribed illness, injury, or quarantine to 50 weeks from 15 weeks. The extension is planned to come into effect summer 2022.

Rate Reduction for Zero-Emission Technology Manufacturers

The corporate income tax (CIT) rate on eligible zero-emission technology manufacturing and processing activities will be reduced in half. This will reduce the CIT rate on small businesses from 9 to 4.5 per cent and the general CIT rate from 15 to 7.5 per cent. The rate reduction will apply to taxation years that begin after 2021 and before 2031 (gradually phasing out between 2029 and 2031).