British Columbia plans to reduce income tax on small businesses to the lowest level in Canada by 2012, according to an April 7 announcement that credits the sector with employing more than one million people and creating nearly 160,000 new jobs since 2001.

Aimed at ensuring that the province - "is ahead of Canada and North America when it comes to creating a strong, competitive economy," the new tax measure will also raise the income threshold for small business from the current $400,000 to $500,000 beginning January 1, 2010, a 150% increase since 2002.

Also announced was a plan to give employers new incentives to hire and train apprentices by doubling provincial training tax credits. Effective July 1, 2009, employers will be eligible to claim up to $4,000 annually per employee – twice the rate since the program launched in 2007 to provide income tax credits equal to 10% of salary and wages for each apprentice enrolled in recognized apprenticeship programs.

Full details of B.C.'s new economic initiatives – which also include reducing general corporate income tax rates to the lowest level in Canada by 2011, extending the province's Mining Flow-Through Share Tax Credit, and extending film tax credits and eligibility for the Film Incentive BC tax credit – are available www.gov.bc.ca.

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