Highlights for retailers from last week’s Fall Economic and Fiscal Update

Here are some of the key highlights for retailers that were announced in last week’s Fall Economic and Fiscal Update.

1. Repayment Extension for the Canada Emergency Business Account Program (CEBA)

RCC is pleased the government confirmed it will extend the repayment deadline for the CEBA loan program, as retailers are still managing the uncertainties of the pandemic. At this point, specific details have yet to be announced, but RCC will inform members once the repayment schedule becomes available.

2. Small Businesses Air Quality Improvement Tax Credit
The government is proposing a refundable Small Businesses Air Quality Improvement Tax Credit of 25% on eligible air quality improvement expenses incurred by small businesses helping them invest in safer and healthier ventilation and air filtration. Businesses would receive the credit on eligible expenses incurred between September 1, 2021, and December 31, 2022, related to the purchase or upgrade of mechanical heating, ventilation, and air conditioning (HVAC) systems and the purchase of standalone devices designed to filter air using high-efficiency particulate air (HEPA) filters, up to a maximum of $10,000 per location and $50,000 in total.

3. Home Office Expense Deductions
The government will extend the simplified rules for deducting home office expenses and increase the temporary flat rate to $500 annually. These rules will apply to the 2021 and 2022 tax years.

4. Extending the Highly Affected Sectors Credit Availability Program
The government is extending the Highly Affected Sectors Credit Availability Program to March 31, 2022. This program was set to expire on December 31, 2021.

5. Funding to Expand Cargo Storage in Canadian Ports
The government will launch a new, targeted call for proposals under the National Trade Corridors Fund to assist Canadian ports with the acquisition of cargo storage capacity and other measures to relieve supply chain congestion. The fund will dedicate up to $50 million to support eligible priority projects. Further details on the targeted call for proposals will be announced in the coming weeks. RCC will continue to advise members of further developments that evolve from the Fall Economic and Fiscal Update.