Federal Budget 2024
Federal Budget 2024
On April 16, 2024, Deputy Prime Minister and Minister of Finance Chrystia Freeland introduced the 2024 federal budget. Titled “Fairness for Every Generation,” Freeland’s fourth budget aims to invest in housing supply without widening the deficit to the point that it hinders efforts to lower inflation. Amid stubbornly high inflation and widespread worries over the prospects of home ownership, this Budget aims to deliver the message that the federal government understands Canadians’ economic anxieties and is prepared to address them.
Budget 2024 also included further details on a national pharmacare plan, which will guarantee the survival of the supply-and-confidence agreement with the NDP in the short term. While there were few surprises in Budget 2024 after weeks of near-daily announcements, new tax measures are headlined by an increase in companies’ inclusion rate on capital gains above $250,000 from one-half to two-thirds, which is expected to raise $21.9 billion over five years.
Key Items of Relevance to Arts and Culture:
- Budget 2024 proposes to provide $31 million over two years, starting in 2024-25, to the Department of Canadian Heritage for the Canada Arts Presentation Fund to help support organizations that professionally present arts festivals or performing arts series. A portion of this funding will be used to support specific organizations.
- Budget 2024 proposes to provide $10 million over three years, starting in 2024-25, to Canadian Heritage for the Canada Book Fund, which will elevate Canadian authors and stories both at home and abroad through increased support for Canadian authors and book publishers.
- Budget 2024 proposes $40 million over two years for PCH for the Canada Media Fund to continue to support media productions, including those led by people from equity-deserving groups.
- Budget 2024 proposes $20 million over three years of funding proposed for PrairiesCan to support performing arts organizations based in Manitoba, Saskatchewan and Alberta.
- Budget 2024 proposes $50 million over four years, starting in 2025-26, to support workers who may be impacted by Artificial Intelligence, such as creative industries
- Budget 2024 proposes that the tax treatment of charitable donations be revised to allow individuals to claim 80 percent (instead of the previously proposed 50 percent) of the Charitable Donation Tax Credit when calculating Alternative Minimum Tax. Budget 2024 proposes several additional amendments to the AMT proposals. These amendments would:
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- fully allow deductions for the Guaranteed Income Supplement, social assistance, and workers’ compensation payments; −
- allow individuals to fully claim the federal logging tax credit under the AMT;
- fully exempt Employee Ownership Trusts from the AMT; and –
- allow certain disallowed credits under the AMT to be eligible for the AMT carry-forward (i.e., the federal political contribution tax credit, investment tax credits, and labour-sponsored funds tax).
- Budget 2024 proposes to provide $500 million over five years, starting in 2024-25, to Infrastructure Canada to support more projects through the Green and Inclusive Community Buildings program.
- The government did not take action on copyright issues nor provide a path forward for legislative amendments across the cultural industries.
Click here for a comprehensive list of measures that relate to the cultural sector.
Other relevant links include:
Amid charitable donations dip, federal government commits to further constrain giving – Imagine Canada
CLMA Responds to Budget 24: Increases for Festivals, Performing Arts – Canadian Live Music Association (CLMA)
Canadian Visual Artists disappointed: the long-awaited Artist’s Resale Right is not in Federal 2024 Budget – Canadian Artists’ Representation/Le Front des artistes canadiens (CARFAC)
Budget 2024-2025: Copyright holders denounce federal government’s inaction – Coalition for the Diversity of Cultural Expressions (CDCE)
Canadian Arts Coalition Response to Budget 2024 – Canadian Arts Coalition
