BILL M209 – 2025
TAX RELIEF AND TARIFF DEFENCE ACT

HIS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

Part 1 – Income Tax Relief

Purpose of Part

1 The purpose of this Part is to protect British Columbia from the effects of tariffs, disputes or anticipated disputes with adversarial jurisdictions, and other economic challenges by providing income tax relief.

Income tax relief

2 (1) The rate of tax payable under the Income Tax Act, in respect of the taxation year that corresponds to the year this Act comes into force and for the subsequent taxation year

(a) by an individual on the individual's taxable income is as follows:

(i) if the taxable income exceeds $100 000, 25% less than the rates in effect on January 1, 2025 under that Act;

(ii) if the taxable income does not exceed $100 000, 50% less than the rates in effect on January 1, 2025 under that Act;

(b) by a corporation is 25% less than the rates in effect on January 1, 2025 under that Act.

(2) The Lieutenant Governor in Council may, by regulation made within six months of the end of the subsequent taxation year referred to in subsection (1), extend the application of the reduced tax rates set out in subsection (1) for an additional two taxation years if the Lieutenant Governor in Council is of the opinion that such an extension is necessary to continue to protect British Columbians from economic challenges.

Part 2 – Eliminating Procedural Obstacles

Purpose of Part

3 The purpose of this Part is to protect British Columbia from the effects of tariffs, disputes or anticipated disputes with adversarial jurisdictions, and other economic challenges by enabling the Lieutenant Governor in Council to make regulations to eliminate procedural obstacles to the development of natural resources, building of public infrastructure, and economic advancement within British Columbia.

Modifying enactments and authorizations

4 (1) Subject to section 6, the Lieutenant Governor in Council may, by regulation, do one or more of the following:

(a) make an exemption from one or more requirements under an enactment;

(b) modify a requirement set under an enactment;

(c) establish limits on the application of an enactment;

(d) establish powers or duties that apply in place of or in addition to an enactment;

(e) establish terms and conditions in relation to anything done under paragraph (a), (b), (c) or (d);

(f) authorize issuers of licences, permits or other authorizations issued under enactments to modify, add or remove limits or conditions, or the term, of the licences, permits or other authorizations.

Modifying material adopted by reference

5 (1) In this section, "material adopted by reference" means a code, standard or other instrument that is adopted or incorporated by reference by an enactment.

(2) Subject to section 6, the Lieutenant Governor in Council may, by regulation, do one or more of the following:

(a) make an exemption from one or more requirements under material adopted by reference;

(b) modify a requirement set under material adopted by reference;

(c) establish limits on the application of material adopted by reference;

(d) establish powers or duties that apply in place of or in addition to material adopted by reference;

(e) establish terms and conditions in relation to anything done under paragraph (a), (b), (c) or (d).

Limitation on regulation-making power

6 Regulations under section 4 or 5 may only be made

(a) in order to eliminate procedural obstacles to the development of natural resources, building of public infrastructure, or economic advancement, and

(b) in relation to the following requirements or provisions:

(i) a requirement to obtain a licence, permit or other authorization for, or the assessment or consideration of the environmental effects of, a project relating to a natural resource;

(ii) provisions of an enactment that would ordinarily require or trigger engagement with Indigenous peoples, as defined in the Declaration on the Rights of Indigenous Peoples Act;

(iii) any requirement or provision which, in the opinion of the Lieutenant Governor in Council, imposes undue procedural costs or delays to the development of natural resources, building of public infrastructure, or economic advancement.

Public consultation open to Indigenous British Columbians

7 Nothing in this Part shall be interpreted to limit the opportunity of any Indigenous governing body, as defined in the Declaration on the Rights of Indigenous Peoples Act, or person from participating in engagement processes that are open to the general public.

Retroactive application of powers

8 (1) Subject to subsection (2), a regulation made on or before June 30, 2025 under this Part may be made retroactive to January 20, 2025 or a later date and, if made retroactive, is deemed to have come into force on the specified date.

(2) The Lieutenant Governor in Council may not make a regulation under section 9 that is retroactive.

Enforcement of modified enactments, authorizations and material adopted by reference

9 The Lieutenant Governor in Council may, by regulation, specify that a failure to comply with a provision of a regulation made under this Part is to be treated as though it were a failure to comply with the enactment to which that provision relates.

No compensation

10 No compensation shall be payable to any person by virtue of any elimination or reduction in public or Indigenous engagement opportunities resulting from any regulation made under this Part.

Report on exercise of power to make regulations

11 (1) If the Lieutenant Governor in Council makes a regulation under section 4 or 5, the minister charged with the administration of an enactment to which the regulation relates must, in accordance with subsection (2) of this section,

(a) table a report in the Legislative Assembly if the Legislative Assembly is then sitting, or

(b) file the report with the Clerk of the Legislative Assembly if the Legislative Assembly is not sitting.

(2) The report must be tabled or filed

(a) on or before the third Monday in October in each year in respect of a regulation made before that report is tabled or filed and after

(i) the date any previous report was tabled or filed under this section, or

(ii) the date this section came into force if subparagraph (i) does not apply, and

(b) on or before the fourth Monday in February in each year in respect of a regulation made before that report is tabled or filed and after

(i) the date any previous report was tabled or filed under this section, or

(ii) the date this section came into force if subparagraph (i) does not apply.

Final report

12 (1) The Attorney General must prepare a report with respect to the exercise of powers under this Part and

(a) table the report in the Legislative Assembly if the Legislative Assembly is then sitting, or

(b) file the report with the Clerk of the Legislative Assembly if the Legislative Assembly is not sitting.

(2) The report must be tabled or filed under subsection (1) within 90 days after the date of the repeal of sections 4 and 5.

Part 3 – General

Aboriginal and treaty rights

13 To the extent that this Act may affect or limit an aboriginal right or treaty right recognized under section 35 (1) of the Constitution Act, 1982, that effect or limitation is justifiable by factors including the following:

(a) the extraordinary threats that British Columbia faces from tariffs and the actions or anticipated actions of adversarial jurisdictions and the necessity for immediate action to protect British Columbia from such threats;

(b) the critical importance of the development of natural resources, building of public infrastructure, and economic advancement to the protection of Canadian sovereignty and the prosperity of all British Columbians;

(c) the significant economic, social, and other benefits of timely and affordable development of natural resources, building of public infrastructure, and economic advancement for all Indigenous and non-Indigenous British Columbians.

Resolving conflicts between laws, agreements, and instruments

14 This Act prevails if there is a conflict between a provision of this Act and any other enactment, regulation, agreement, or instrument.

Offence Act

15 Section 5 of the Offence Act does not apply to this Act, the regulations or the directives.

General powers respecting regulations

16 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.

(2) The authority to make regulations under another provision of this Act does not limit subsection (1).

Repeal

17 (1) Subject to subsection (2), Part 2 is repealed on May 28, 2027.

(2) The Lieutenant Governor in Council may, by regulation, repeal a provision of this Act referred to in subsection (1) on a date earlier than May 28, 2027.

Commencement

18 This Act comes into force on the date of Royal Assent.

Explanatory Note

This Bill provides protections for British Columbia from the effects of tariffs, disputes or anticipated disputes with adversarial jurisdictions, and other economic challenges by

• providing income tax relief, and
• enabling the Lieutenant Governor in Council to remove procedural obstacles to the development of natural resources, building of public infrastructure, and economic advancement within British Columbia.