Newfoundland and Labrador’s fiscal plan for 2024 includes a deficit of $152 million, primarily attributed to ongoing investments aimed at supporting residents and businesses during a challenging period of high costs.
However, the province anticipates achieving balance next year and sustaining it for the foreseeable future. Despite the deficit, revenue forecasts for 2024-25 are robust, reaching $10.3 billion, the highest in the province’s history.
In this business funding takeaway on the Newfoundland & Labrador Budget 2024, we delve into key initiatives and funding opportunities tailored to support businesses amidst the fiscal landscape.
Visit our Federal and Provincial Budget 2024 page to learn about key business funding takeaways for all budget releases.
Business Funding Priorities for the Newfoundland & Labrador Government
Newfoundland and Labrador’s Budget 2024 underscores a commitment to bolstering industries and businesses while maintaining a focus on environmental responsibility to foster a greener economy and address climate change challenges. Supporting Business and Economic Development
- Reduction in Small Business Tax Rate: Effective January 1, 2024, the small business tax rate has decreased from 3% to 2.5%, resulting in savings for approximately 6,200 small businesses.
- Economic Development Initiatives: Approximately $35 million will be allocated to supporting economic development initiatives, including research and development, commercialization, investment attraction, regional development, and business growth activities.
- Connectivity Initiatives: $7 million will be dedicated to connectivity initiatives, encompassing broadband and cellular infrastructure enhancements, as part of the government’s overall $25 million commitment.
- Business Navigators: $500,000 allocated for Business Navigators to assist businesses in navigating government policies and improving business processes.
- Research Inspired Student Enrichment (RISE) Awards: $250,000 is earmarked for the Research Inspired Student Enrichment (RISE) Awards, benefiting 20 Level II high school students demonstrating academic excellence in STEM subjects.
- Manufacturing and Processing Investment Tax Credit: Introduction of a 10% Manufacturing and Processing Investment Tax Credit is aimed at enabling sectors such as fishery, farming, forestry, manufacturing, and production to invest in equipment.
To learn how your business can cover costs and access funding, download our popular Canadian Business Funding Guide. Determine your eligibility and apply with us!
Investing in Energy Resources
- Wind-Hydrogen Development: Investment in wind-hydrogen development to create new jobs and expand the provincial economy, supporting the transition to Net Zero.
- Offshore Oil and Gas Industry: Continuation of support for the offshore oil and gas industry to meet global demand for lower carbon oil.
Investing in Mining
- Critical Minerals Strategy: Allocation of $2.6 million to support the implementation of the Critical Minerals Strategy, enhancing the province’s competitiveness and attracting private investment.
- Mineral Incentive Program: $1.7 million is allocated for the Mineral Incentive Program, including $1.3 million for Junior Exploration Assistance.
- Labrador-Specific Geoscience Program: Annual allocation of $1.6 million for a Labrador-specific geoscience program supporting exploration in frontier regions.
The Canadian Critical Minerals Sector is Growing Rapidly in 2024 – read our blog to learn more about trends within this industry and adapt sustainability measures.
Celebrating Film, Television, Arts, and Culture
- Year of the Arts and 75th Anniversary of Confederation: $10 million allocated for initiatives celebrating the Year of the Arts and the 75th Anniversary of Confederation.
- Cultural Facility Infrastructure Fund: $2 million earmarked to create a Cultural Facility Infrastructure Fund.
- The All-Spend Film and Video Production Tax Credit: A refundable corporate income tax credit available to eligible corporations at the rate of 40% of eligible production costs, to a maximum tax credit of $10 million annually per project.
- Film and Television Equity Investment program: $10 million allocated in continued support.
- ArtsNL: $5 million in funding to support our province’s professional artists and arts organizations.
Addressing Environment and Climate Change
- Greenhouse Gas Emissions Reduction: $81.9 million allocated to reduce greenhouse gas emissions and address energy affordability, including support to transition homes from oil to electric heat.
- Green Transition Fund: $11.5 million allocated for the Green Transition Fund.
- Flood Risk Mapping: $1.5 million allocated for flood risk mapping.
- Electrical Vehicle Infrastructure: $1.1 million allocated for electrical vehicle infrastructure.
- Enhanced Drinking Water Improvement Initiative: $508,000 allocated for an enhanced drinking water improvement initiative.
- Wastewater Surveillance Program: $650,000 allocated for a permanent wastewater surveillance program.
- Green Technology Tax Credit: Introduction of a 20% Green Technology Tax Credit to help businesses with specific capital costs for green activities.
Renewable Resources
Renewable resources such as fishing, forestry, and farming are traditional sectors in Newfoundland and Labrador, and the province is committed to managing these valuable resources sustainably and responsibly.
- Wildland Firefighting Equipment and Conservation: $28 million is allocated for initiatives including wildland firefighting equipment, treating rising insect populations, and tree planting.
- Agriculture Sector Support: Close to $20 million is allocated for the agriculture sector and ongoing activities to improve food self-sufficiency.
- Atlantic Fisheries Fund: $4.5 million is allocated for the Atlantic Fisheries Fund to help the seafood sector meet market demands for quality and sustainably sourced products.
- Aquaculture Industry Development: $3.5 million is allocated to help develop the aquaculture industry.
- Marketing Support for Seafood Industry: $3 million is allocated for the Association of Seafood Processors to market the industry.
- Multi-Species Aquaculture: $500,000 is allocated for each of the next two years to help build multi-species aquaculture.
- Seafood Development Program: $200,000 is allocated for the Seafood Development Program.
Explore our Cleantech Funding Directory now to discover opportunities for financing your innovative projects and initiatives in the clean technology sector.
Apply for Government Funding with Mentor Works, A Ryan Company
Demonstrating a commitment to economic activity, environmental sustainability, and overall well-being, the array of funding programs and initiatives outlined in the Newfoundland & Labrador budget depict a hopeful 2024 for business. You can also learn about the Canadian Federal and other Provincial funding updates on our Federal and Provincial Budget 2024.
For businesses seeking to leverage these opportunities, Mentor Works, a Ryan Company, stands as Canada’s leading government grant writing service. Our team of expert grant application writers and tax credit consultants is fully equipped to navigate the intricacies of these funding programs, providing invaluable guidance throughout the application process. We are dedicated to ensuring your business optimally positions itself to secure the support it needs.
As your strategic partner in offsetting the costs of new business growth initiatives, Mentor Works is here to propel your business towards success in the dynamic economic landscape. Reach out to a member of our funding team today to discover the grant, tax credit, or incentive programs that could elevate your business to new heights.