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Tax Structure and Incentives
Federal and Provincial Taxes, Incentives & Programs for Business
Companies in British Columbia (BC) can take advantage of various programs and tax incentives, along with a competitive corporate tax system, to boost their bottom line. To find out more go to Trade and Invest British Columbia and the Government of Canada’s Business Grants and Financing webpage. Additional information can be found at Innovation, Science & Economic Development Canada.
District of Houston Revitalization Tax Exemptions
1. Industrial Revitalization Tax Exemption – Bylaw 1133, 2021
What is the purpose of this program? The primary objective of the program is to offer incentives that foster industrial development and spur economic growth in the local region. Specifically, the program provides support for the expenses related to constructing new industrial buildings and renovating existing ones in Houston.
What are the benefits of the program? This program offers a range of benefits that can positively impact industrial development and economic activity in Houston. Tax exemptions, for instance, can be granted for up to five years, commencing with a 100% exemption on the increase in improvement value during the first year following completion prior to October 31st. Notably, the exemptions apply to the municipal portion of property taxes for both light and heavy industrial properties, further incentivizing investment and development in the area.
How to apply? To apply for this program, please follow the steps outlined below:
- Obtain a copy of Bylaw No. 1133, 2021, and the application form.
- Determine whether your property meets the eligibility criteria.
- Schedule an appointment to discuss your project with the Director of Finance.
- Gather all the necessary documents required for your application
- Submit your application, ensuring that you include all the required information and pay the application fee.
- The Director of Finance will review your application.
- If your application is approved, you will need to enter into a Tax Exemption Agreement* with the District of Houston.
- Upon completion of your project, provide evidence to the Director of Finance.
- Obtain a Tax Exemption Certificate upon approval.
*For further information regarding the terms and conditions governing the Tax Exemption Agreement and Tax Exemption Certificate, please refer to Sections 20 and 25 of the Industrial Revitalization Tax Exemption Bylaw No. 1133, 2021.
Find out if your project is eligible? To be considered for this program, your project must meet certain eligibility requirements. Specifically, it must fall under either the category of an eligible New Industrial Construction Project or an eligible Capital Investment Project.
Additionally, the project must be situated within the Light Industrial or Heavy Industrial zones, as defined in the Development Bylaw No. 1040, 2013.
Applications must be submitted in their entirety by September 30th of the year in which the project is scheduled to be completed.
Please be aware that certain exemptions may apply, and that this program is subject to certain conditions. For further information, please feel free to contact the Director of Finance at finance@houston.ca or by calling the Municipal Office at 250-845-2238.
How do tax exemptions for industrial development work? Each year, a certain percentage of the increase in the value of improvements made to your property will be subtracted from the assessed value to determine the tax exemptions granted under the program as follows:
| Year of Tax Exemption | Annual % of Improvement Value Increase (to be deducted from assessed value of improvements) |
| Year 1 | 100% |
| Year 2 | 80% |
| Year 3 | 60% |
| Year 4 | 40% |
| Year 5 | 20% |
Please Note: This document serves as a general source of information regarding the program. For further details, we recommend referring to Bylaw No. 1133, 2021.
2. Commercial Area Revitalization Tax Exemption - Bylaw 1120, 2019
What is the purpose of this program? The main goal of the program is to provide incentives aimed at revitalizing the commercial areas of Houston. More specifically, the program offers assistance in covering expenses related to the construction of new commercial buildings and the renovation of existing ones within the district.
There are two tax exemptions under this program:
- New Construction Exemption Program
- Capital Renovation Exemption Program
1. under the New Construction Program for projects with a construction value of at least $50,000 which:
- result in a new principal building being constructed on a vacant parcel of land; or
- result in the construction of a new principal building following the demolition of an existing principal building.
2. under the Capital Renovation Program for projects with a construction value of at least $10,000 which involves:
- aesthetic improvements to the exterior of the building which are visible from the front parcel line and comply with the Downtown Development Permit Area Guidelines;
- improvements to building accesses and exits (including interior renovations) which bring the building into compliance with accessibility standards under the BC Building Code; and
- an addition to an existing building which increases the amount of commercial floor space available.
For the capital renovation projects, exemptions can be granted for up to three years, with a 30% exemption on the increase in improvement value with a construction value of $200,000 or less. Construction values over $200,000 are eligible for a 40% exemption for three years. Notably, the exemptions apply to the municipal portion of property taxes for commercial properties, further incentivizing investment and development in the area.
How to apply? To apply for this program, please follow the steps outlined below:
- Obtain a copy of Bylaw No. 1120, 2019, and the application form.
- Determine whether your property meets the eligibility criteria.
- Schedule an appointment to discuss your project with the Director of Finance.
- Gather all the necessary documents required for your application
- Submit your application, ensuring that you include all the required information and pay the application fee.
- The Director of Finance will review your application.
- If your application is approved, you will need to enter into a Tax Exemption Agreement* with the District of Houston.
- Upon completion of your project, provide evidence to the Director of Finance.
- Obtain a Tax Exemption Certificate upon approval.
*For further information regarding the terms and conditions governing the Tax Exemption Agreement and Tax Exemption Certificate, please refer to Sections 23 and 25 of the Commercial Area Revitalization Tax Exemption Bylaw No. 1120, 2019.
Find out if your project is eligible? To be considered for this program, your project must meet certain eligibility requirements. Specifically, it must fall under either the category of an eligible New Commercial Construction Project or an eligible Capital Renovation Project.
Additionally, the project must be situated within the C1 Core Commercial Zone or C2 Service Commercial Zone , as defined in the Development Bylaw No. 1040, 2013. Some exceptions apply for community care facilities, assisted living facilities, parking facilities, private clubs or public assembly facilities.
Applications must be submitted in their entirety by September 30th of the year in which the project is scheduled to be completed.
Please be aware that certain exemptions may apply, and that this program is subject to certain conditions. For further information, please feel free to contact the Director of Finance at finance@houston.ca or by calling the Municipal Office at 250-845-2238.
How do tax exemptions for industrial development work? Each year, a certain percentage of the increase in the value of improvements made to your property will be subtracted from the assessed value to determine the tax exemptions granted under the program as follows:
New Construction Exemption Program
| Year of Tax Exemption | Annual % of Tax Exemption on Assessed Value for Improvements only |
| Year 1 to 2 | 100% |
| Year 3 to 5 | 50% |
| Year 6 to 10 | 25% |
Capital Renovation Exemption Program
| Term of Tax Exemption | Annual % of Tax Exemption on Total Class 6 Assessed value | Construction Value |
| Year 1 | 30% | $10,000 to $50,000 |
| 2 Years | 30% | $50,001 to $100,000 |
| 3 Years | 30% | $$100,001 to $200,000 |
| 3 Years | 40% | Greater than $200,000 |
Please Note: This document serves as a general source of information regarding the program. For further details, we recommend referring to Bylaw No. 1120, 2019.
In the event of any inconsistencies or discrepancies between the terminology used in this document and the Bylaw, the provisions of the Bylaw shall take precedence.
Site By Trinex Internet Solutions - Admin | ID 147 Last Updated: Apr 26, 2023
