Premier announces $1.5 billion COVID economic recovery plan

The British Columbia government is announcing $660 million in new tax incentives and outlining how it will spend another $1.5 billion for economic recovery from the COVID-19 pandemic.

The plan earmarks $417 million to support jobs and training, including $300 million to hire new health-care workers.

Premier John Horgan’s government has also announced funding for the tourism industry, food security, climate action, and technology and innovation.

“As British Columbians, we’ve been through a lot recently. We know our recovery won’t happen overnight, but by focusing on people and taking care of each other, we will ensure there are better days ahead for all of us,” said Horgan. “The steps we are taking now will improve health care, get people back to work, support B.C. businesses and strengthen our neighbourhoods and communities.”

About $100 million in infrastructure grants will be available for projects that are ready to begin and $300 million in grants for small- and medium-size businesses to help protect more than 200,000 jobs in hard-hit industries.

The tax incentives include a temporary 100 per cent PST rebate on select machinery and equipment for eligible businesses and a 15 per cent tax credit on eligible new payroll to encourage businesses to hire more workers.

The government says that as of August, almost 250,000 jobs have been restored, equal to 62 per cent of the total jobs lost due to the pandemic.

The province said B.C.’s total response to the COVID-19 pandemic exceeds $8.25 billion.

“As British Columbians, we’ve been through a lot recently. We know our recovery won’t happen overnight, but by focusing on people and taking care of each other, we will ensure there are better days ahead for all of us. The steps we are taking now will improve health care, get people back to work, support B.C. businesses and strengthen our neighbourhoods and communities.” (B.C. Premier John Horgan)

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The following is from B.C. government news release outlining the next steps in B.C.’s recovery plan:

• Making health care better by hiring 7,000 new front-line health-care workers. This includes thousands of health-care aides to manage outbreaks in long-term care homes and 600 contact tracers to help stop further spread in the community. The plan will also increase support for mental health care in the workplace and introduce a new Hospital at Home initiative that will allow patients to receive medical services in their own home from a team of health professionals.
• Creating jobs and opportunities by investing in targeted and short-term training in the skills people need to get work in high-demand fields, including for those who want to move into new, front-line health, child care and human-service positions. The plan will also expand Indigenous skills training and accelerate the creation of affordable child-care spaces so that more parents, particularly women, can get back to work. It includes investments of over $100 million to support tourism-related businesses and communities.
• Helping businesses grow and rehire with a 15% refundable tax credit based on eligible new payroll. It will also introduce a small- and medium-sized business recovery grant to support approximately 15,000 hard-hit businesses, while protecting as many as 200,000 jobs. Tourism operators will be eligible for a special top-up. The plan will also provide a temporary 100% PST rebate on select machinery and equipment to make it easier for eligible businesses to make the kinds of investments that will allow them to grow and become more productive.
• Supporting strong communities by investing over $400 million to revitalize community infrastructure and support local governments to provide the valuable services people depend on. This includes $100 million in infrastructure grants for shovel-ready projects that will create jobs right away. The plan also earmarks over $1 billion in provincial and federal investments to help keep people moving, whether by transit, TransLink or BC Ferries. An additional $540 million in combined federal/provincial funding will help B.C. communities address other local challenges impacted by COVID-19.

Click here to find out more about the recovery plan.