Business aviation stepped up during COVID-19, repatriating Canadians in the early days of the pandemic, implementing the highest levels of safety and health measures, volunteering to deliver vaccines to remote communities and donating time and materials to keep people healthy and safe. We are proud of our people, who has done so much and are ready to do more.

This submission, developed with input from industry members across Canada, points a way forward that not only supports this critical asset, but helps the Canadian economy as well.

Short-term remedial and relief recommendations

  • Accelerate the capital cost allowance, expense tax deduction, credit and/or a rebate program applied to the purchase, modification and upgrade of health and safety equipment related to COVID-19.
  • Provide support to industry for the rising costs associated with airport fees and air navigation as the result of COVID-19.
  • Suspend all federal and carbon taxes on jet fuel and avgas until air travel reaches pre-COVID-19 levels.
  • Work with the business aviation community to pilot COVID-19 testing and contact tracing processes for air passengers, using the small scale and highly controllable business aviation aircraft/FBO environments.
  • Expedite the use of technologies and processes (e.g. contact tracing, rapid testing) that would accelerate the safe opening of our interprovincial and international borders and responsibly remove the 14-day blanket quarantine requirement.

Longer-term recommendations for recovery and growth

Recommendation #1: Create a federal financial stimulus programs that would encourage the purchase and environmental modernization of business aircraft, materials and services.

Recommendation #2: Exclude all aircraft that are used for business purposes from any new “luxury” tax schemes.

Recommendation #3: Ensure that we support our climate change goals as we ramp up the economy by promoting sustainable aviation fuel (SAF) in any Government of Canada programs that reduce the applicable fuel tax rate and provides other incentives to companies that manufacture renewable fuels.

Recommendation #4: Make a portion of the R&D investment tax credit refundable to companies in the aerospace industry and have the remaining portion of the credit remain non-refundable and subjected to a 20-year carry-forward period, after which point any unused credits would expire.  

Recommendation #5: Allow corporations to renounce R&D expenditures to flow-through share investors, similar to what is currently permitted in the mining, oil and gas industries.

Recommendation #6: Offer a tax holiday for corporations carrying out large investment projects in Canada. Quebec currently offers a 15-year tax holiday in such cases.

Recommendation #7: Work with industry to create a modernized set of Canadian Aviation Regulations (CARs) for business aviation that is more flexible and responsive to business aviation operations, particularly for small operators, including the increased use of appropriate delegations and exemptions.