Economic Growth, Green Economy and Climate Change

Newfoundland and Labrador’s business community and industries are assuming leadership roles across the global economy and attracting new investment. Our support of a healthy and vibrant economy through Budget 2023 is highlighted by a suite of programs designed to incentivize new investment, improve connectivity, and support business growth.

Supporting Economic Development

Budget 2023 allocates funding for direct investments in businesses and organizations, as well as provides tax relief for businesses. These initiatives are designed to ease some of the day-to-day pressures that business operators experience and include:

Increasing the exemption threshold of the Health and Post-Secondary Education Tax from $1.3 million to $2 million. This will result in savings for 1,250 businesses and encourage economic development.
Increasing commission discounts for wine, spirit and cider producers in the province.
A 10 per cent Manufacturing and Processing Investment Tax Credit that assists the manufacturing and production, fishery, farming and forestry sectors invest in equipment.
Approximately $35 million to support economic development initiatives including research and development, commercialization, investment attraction, regional development and business growth activities.
$25 million over four years for connectivity initiatives, including broadband and cellular.

Energy

Our Renewable Energy Plan provides a sustainable long-term vision for Newfoundland and Labrador to maximize its renewable energy resources. As we transition to Net Zero, the province’s low carbon offshore oil and gas industry will continue to help fuel global demand for oil. Budget 2023 includes:

$50 million to continue the Offshore Exploration Initiative, which incentivizes oil and gas companies to drill exploration wells and which has stimulated exploration and production.
$13 million for the acquisition and processing of new seismic data.
$6 million in annual funding for the Innovation and Business Development Fund.
Approximately $4.8 million to conduct a natural gas resource assessment that will help identify the volume of gas within the offshore oil reservoirs in the Jeanne d’Arc Basin.

Mining

Growth in the mining sector is being driven by the demand for minerals that the world needs to support new technologies, renewable energy and a transition to a low carbon digitized economy. Budget 2023 includes:

$1.7 million for the Mineral Incentive Program, including $1.3 million for Junior Exploration Assistance.
Almost $1 million for a Labrador-specific geoscience program that supports exploration in frontier regions.

Film and Television, Arts and Cultural Sectors

The province’s film and television industry has never been better positioned for success. As local productions receive a record number of Canadian Screen Award Nominations and Newfoundland and Labrador takes centre stage with Disney’s upcoming release of ‘Peter Pan and Wendy’, Budget 2023 investments focus on setting the stage for sustained success. They include:

Increasing the All-Spend Film and Video Production Tax Credit to 40 per cent. This expanded tax credit will apply to total qualified production costs with a maximum tax credit of$10 million annually per project.
$10 million for the Film and Television Equity Investment Program.
$5 million for Arts NL.
$3.5 million for the Cultural Economic Development Program.
$1 million for the Come From Away show debuting in Gander this summer.

Environment and Climate Change

To support communities adapt to a changing climate, targeted activities to lower our carbon footprint, and position Newfoundland and Labrador globally as a Clean Energy Centre of Excellence, Budget 2023 includes:

A green technology tax credit of 20 per cent to help businesses with specific capital costs for green activities such as equipment for energy conservation and clean energy generation and efficient use of fossil fuels.
Close to $60 million to reduce greenhouse gas emissions, while addressing energy affordability. This funding includes $27 million for residential rebates and $30 million for projects in the private, municipal, non-profit, and public sectors under the Low Carbon Economy Fund and Oil to Heat Pump Affordability Program which will support 1,840 homeowners.
$3 million to support the transition to electric vehicles.
$2 million for flood risk mapping.
$2 million for provincial waste management.
More than $500,000 for increased capacity for Environmental Assessment and Regulatory Oversight of Wind-Hydrogen Projects.
$300,000 to establish a permanent program for wastewater surveillance.

Renewable Resources

Traditional industries such as the fishery, agriculture, and forestry are major contributors to the social and economic health of communities. In the last year, the fishery’s value exceeded $1 billion and the agriculture sector more than doubled the province’s food self-sufficiency in fruit and vegetable production. Budget 2023 investments include:

$42.9 million over five years through a new federal-provincial agriculture partnership.
$5.1 million for the Atlantic Fisheries Fund to help the seafood sector meet market demands for quality and sustainably-sourced products.
$500,000 annually for three years for multi-species aquaculture development and the collection of oceanographic data.
$5.8 million additional funding to support fire suppression.
$5 million to protect forests from spruce budworm.
$3.9 million to plant 6.25 million trees.
$2.25 million for the Provincial Agriculture Assistance Program.
More than $800,000 for new equipment and programs such as the vegetable transplant program at the nursery in Wooddale.