As part of its 2025 budget, the B.C. government is expanding some tax credits and planning to give eligible drivers a $110 insurance rebate once again, but there are few “taxpayer goodies” in the planning document due to the imposition of punishing U.S. tariffs.
The payments to ICBC policyholders are slated to begin in mid-March, an unexpected move considering the NDP government scrapped the planned $1,000 grocery rebate it had campaigned on in the fall election, citing the grim economic forecast with the uncertainty around the impact of tariffs looming over financial planning.
Basic auto insurance rates at ICBC rates will remain frozen for the sixth straight year, through March of 2026.
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The budget document also outlines $375 million to increase the Rental Assistance Program from $400 to $700, with the income threshold raised to $60,000. The Ministry of Finance estimates that nearly 6,000 households will be eligible at that level, nearly double the current number.
The Shelter Aid for Elderly Renters (SAFER) program will see average supplements increase by 30 per cent with a higher income threshold. Seniors earning up to $40,000 per year will now be eligible, with the average supplement rising from $261 per month to $337.
Other rebates
The government is continuing to fund $100 million over the next two years for electric heat pumps, but only for low- and moderate-income households.
At the same time, provincial sales tax for used zero-emission vehicles will go into effect on May 1 of this year instead of 2027 as originally planned.
“This is not a budget that has splashy new announcements,” said Finance Minister Brenda Bailey, who described her focus as preserving core services.
Bigger tax credits
The Small Business Venture Capital Tax Credit is going from $120,000 to $300,000 for the “annual credit limit that an individual can claim for investments made on or after March 4, 2025.”
The interactive digital media tax credit will become permanent as it increases from 17.5 to 25 per cent, with the goal of “help(ing) companies attract the talent they need to grow their teams and compete for more contracts, strengthening a robust and sustainable industry.”
The film industry will see the production services tax credit rise from 28 to 36 per cent, with the Film Incentive BC credits for Canadian content set to grow from 35 to 40 per cent.
This comes as the Finance Ministry estimates the unemployment rate will increase from 6.4 per cent this year to 6.7 per cent in 2026 as a result of U.S. tariffs. They also forecast a decline of corporate profits from to $5 billion to $3.2 billion in that time.
Overall the province anticipates revenue losses of between $1.7 billion and $3.4 billion due to the tariffs.
