OTTAWA -- The federal budget zeroes in on business investment and growth in Canada with a suite of new tax measures aimed at spurring private-sector productivity and innovation.
The 2026 budget includes a new tax exemption on up to $15-million in capital gains earned on successful eligible investments.
The tax break would apply to shares issued between budget day and 2037 by a corporation with a value of up to $100 million and held for at least 36 months.
The budget also enhances the small business rollover of taxes when capital gains are reinvested in another Canadian small business.
The government says the Canada Growth Incentive measures help "level the playing field with the United States, encourage more capital to flow to Canadian businesses, and enable successful entrepreneurs to reinvest their proceeds into Canada."
The budget also includes what it calls "the most ambitious effort in decades" to simplify the tax system through a package of tax reforms to simplify tax rules, streamline reporting requirements and modernize tax administration
This report by The Canadian Press was first published Nov. 5, 2026.