Released on April 7, 2006
Beginning this year, employed tradespeople will see tax relief on their required tool purchases, thanks to measures introduced with yesterday's Provincial Budget.Finance Minister Andrew Thomson announced an Employees' Tool Tax Credit that will consist of two components. The first is a One-Time Trade Entry Tax Credit, resulting in $1 million in savings annually for qualifying tradespeople. This Credit recognizes the high cost of initial purchases of work-related tools that are required as a condition of employment.
"With Saskatchewan's economy performing well, and the demand for trades increasing, we understand the importance of keeping those qualified people in Saskatchewan to help build the province," Thomson said.
As well, the Employees' Tool Tax Credit provides an Annual Maintenance Tax Credit that recognizes the ongoing cost of maintaining tools, worth an estimated $1.9 million in annual tax savings for qualifying tradespeople.
While provisions currently exist to allow self-employed tradespeople to write off the cost of tools, this measure is the first time that people employed in the trades will be recognized and provided a comparable benefit.
"These tax credits provide significant financial relief and are an incentive for our tradespeople to build their futures right here," Thomson said.
There are four trade groups that will be eligible for tax credit assistance. Qualifying tradespeople are individuals who are employees performing designated tasks within a trade described in one of the trade groupings. The attached backgrounder offers more details.
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For More Information, Contact:
| Lorri Thacyk Finance Regina Phone: (306) 787-6605 |