Budget 2025 Previously Announced But Not Yet Passed

The Budget confirms the government’s intention to proceed with a number of previously announced tax and related measures.

Significant measures include:

  • Capital Gains Rollover on Small Business Investments- ability to defer the capital gain tax on sale of eligible small business corporation shares if the proceeds are reinvested in replacement eligible corporation shares. Effective for dispositions on or after January 1, 2025.

  • Reporting by Non-profit Organizations – organizations with revenue over $50,000 must file NPO returns for fiscal periods beginning on or after January 1, 2027.

  • Immediate Expensing Measures – for manufacturers and processors’ purchase of machinery, equipment (and buildings effective Nov 4, 2025) used for manufacturing and processing goods.

  • Immediate Expensing Measures – for clean energy investments in specified clean energy equipment.

  • Alternative Minimum Tax (AMT) - several changes, one of which is to increase the dollar amount for when AMT will apply.

  • Accelerated Capital Cost Allowance for Productivity-Enhancing Assets – 100% expensing for patents and electronic data processing equipment acquired after April 15, 2024, and before January 1, 2027.

  • Accelerated Capital Cost Allowance for Purpose-Built Rental Housing – of 10% versus 4% for construction after April 15, 2024.

  • 100% rebate of the GST on eligible new rental housing projects for which construction began after September 13, 2023, but before 2031.

  • Increase in the Lifetime Capital Gains Exemption to apply to up to $1.25 million of eligible capital gains-  effective for sales after June 25, 2024, on qualifying small business shares and qualified farm property.

  • The Budget confirms the cancellation of the Canadian Entrepreneurs’ Incentive (CEI) as previously announced in Budget 2024.

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