Tax Credits Act 2025

What this bill does

This bill creates a new tax credit system to encourage businesses to invest in their Bermuda operations, hire more local workers, and contribute to the community. The credits can reduce the amount of corporate income tax that qualifying companies have to pay, essentially rewarding them for creating jobs and spending money locally.

If passed (voted YES)

• Insurance companies and related businesses that employ people in Bermuda could receive significant tax credits, reducing their corporate tax bills
• Companies would get larger credits for hiring Bermudians, providing training, and purchasing goods and services from local Bermuda businesses
• Businesses making charitable donations to Bermuda charities and investing in utilities infrastructure would also qualify for tax reductions

If rejected (voted NO)

• The current corporate tax system remains unchanged with no new incentives for local investment
• Companies would have no additional financial motivation to prioritize hiring Bermudians or buying from local suppliers
• The government would not offer tax relief to encourage business expansion or community contributions in Bermuda

Who it affects

This primarily affects insurance companies and large businesses operating in Bermuda that pay corporate income tax. It also impacts Bermudian job seekers, local suppliers, charities, and utility infrastructure projects that could benefit from increased business investment.