Bermuda’s Tax Credits Act 2025 represents a clear statement of values. It is practical, forward-looking legislation that places Bermudian workers, Bermudian businesses and Bermudian communities at the centre of our economic strategy.

As a labour government, and as the junior minister responsible for economy and labour, it is important to be clear about what this Act does and why it matters to working families across our Island.

At its core, the Tax Credits Act is about growing Bermuda’s working population and strengthening economic participation. Central to this is the Substance-Based Tax Credit, which directly links tax relief to job creation, training and local spending. Companies that employ Bermudians, expand their local workforce, and invest in skills development receive greater benefit.

For Bermudian workers, this matters.

The jobs-based component of the credit places real value on headcount growth, long-term employment and training. Payroll tied to Bermudians attracts higher benefit levels, with additional uplift for training and development. This approach encourages employers not only to hire, but to build careers, skills and succession within Bermuda’s workforce.

The Act also strengthens Bermuda’s local business ecosystem. The expense-based component of the credit rewards companies that purchase goods and services from Bermudian suppliers, invest in local office space, procure equipment locally, and use professional services delivered on Island. This keeps money circulating locally, supports small and medium-sized businesses, and reinforces the economic multiplier effect that benefits workers and families.

Importantly, this legislation is not a giveaway. Credits are earned through real economic contribution — jobs, training and local spending. This protects public finances while ensuring that economic policy works for the people who live and work here.

The Tax Credits Act 2025 is part of a broader record of action by the Progressive Labour Party to support local labour. This government has expanded workforce development and training opportunities, invested in scholarships to build local talent, supported summer internship programmes that give young Bermudians meaningful work experience, and strengthened pathways from education into employment. The Act reinforces these efforts by ensuring employers play their part in developing and sustaining our workforce.

As global economic rules change, Bermuda cannot stand still. But adaptation does not mean abandoning our values. The Tax Credits Act demonstrates that it is possible to remain internationally compliant while advancing a labour-centred agenda; one that prioritises Bermudian employment, skills development and local economic participation.

This legislation sends a clear message: Bermuda rewards those who invest in its people. That principle has long guided the Progressive Labour Party, and it will continue to guide our approach to building a fairer, stronger economy for all Bermudians.

• Progressive Labour Party senator Lauren Hayward Bell is the Junior Minister of Economy and Labour