On November 2, 2020, Bill C-9 was introduced which proposed changes to the Canada Emergency Wage Subsidy (CEWS), and also introduced details of the Canada Emergency Rent Subsidy (CERS) previously announced on October 9, 2020. Some of the key points are listed below.
CEWS
The change to the top-up subsidy revenue decline calculation, and the freezing of period 8 CEWS calculations through to period 10, were included. The legislation generally matches the October 9, 2020 release.
CERS
As indicated in the October 9, 2020 release, the first applicable period is Period 8 (Sept 27 – Oct 24).
Up to $75,000 per period in rent, mortgage interest, insurance and property taxes paid by commercial property owners can be partially subsidized. Several additional rules were included to further limit the claim.
CERS legislation is included as a part of CEWS legislation (Section 125.7). The subsidy percentage is computed in the same manner as CEWS (using the same revenue reduction percentages), with the same 65% maximum for all periods ending on or before December 19, 2020.
An additional rent top-up percentage will provide a further subsidy of 25% for the portion of the period throughout which the property is subject to a public health restriction.
CERS and CEWS
Applications are due by the later of January 31, 2021, and 180 days after the end of the qualifying period.
Several revenue recognition elections previously available only until Period 4 have been made available for all periods.
The ability to revoke or amend elections has been added.