Personal income taxes • The Education Tax Credit is extended to individuals pursuing post-secondary education that is related to their current employment (if not already reimbursed by the employer); • The budget allows caregivers to claim the Medical Expense Tax Credit on expenses made on the behalf of dependent relatives. •
Enhancement of the Canada Education Savings Grant: matching contribution rate is enhanced for the first $500 of contributions made by low-income families; •
Creation of the Canada Learning Bond, effective 1 January 2004 for children born on or after that date. The grant of up to $2,000 (over the child's lifetime) is available for families entitled to the
National Child Benefit.
Corporate income taxes •
Increase in the small business deduction limit: the small business deduction (SBD) limit is increased to $300,000 in 2005 and subsequent years instead of $275,000. The SBD limit was gradually increased in the
2003 Canadian federal budget and at the time was supposed to reach $300,000 in 2006; •
Non-capital losses carry-forward extended to 10 years: the budget extends the loss carry-forward period from 7 to 10 years for non-capital losses. •
Faster depreciation of computer equipment: for computer equipment acquired after 22 March 2004, the
CCA rate is increased from 30% to 45%. The separate class election for computer is however terminated for equipment acquired on or after 1 January 2005; •
Extension of the Mineral Exploration Tax Credit: the Mineral Exploration Tax Credit, a temporary tax credit created by the
2000 Canadian federal budget and set to expire on 31 December 2004 per the
2003 Canadian federal budget is extended through 31 December 2005. ==Expenditures==