Report on Federal Tax Expenditures - Concepts, Estimates and Evaluations 2025: part 2

Tax Expenditure Estimates and Projections

Measure	Tax	2019	2020	2021	2022	2023	2024	2025	2026	Type	Subject	Category
Deduction for self-employed artists	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Arts and culture	Structural
Cash basis accounting	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Cash basis accounting	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Deferral of income from destruction of livestock	PIT	S	S	S	3	3	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Deferral of income from destruction of livestock	CIT	S	S	S	4	4	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Deferral of income from sale of livestock in a region of drought, flood or excessive moisture	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Deferral of income from sale of livestock in a region of drought, flood or excessive moisture	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Structural
Deferral of capital gains through intergenerational rollovers of family farms or fishing businesses	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Deferral of income from grain sold through cash purchase tickets	PIT	-20	15	3	60	25	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Deferral of income from grain sold through cash purchase tickets	CIT	-20	25	4	80	35	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Patronage dividends paid as shares by agricultural cooperatives	PIT	S	S	-1	-1	S	1	1	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Patronage dividends paid as shares by agricultural cooperatives	CIT	1	1	-1	-2	S	2	2	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Tax treatment of farm savings accounts (AgriInvest and Agri-Québec)	PIT	S	3	10	5	10	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Tax treatment of farm savings accounts (AgriInvest and Agri-Québec)	CIT	S	1	2	1	1	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Zero-rating of agricultural and fish products and purchases	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - farming and fishing	Non-structural
Accelerated capital cost allowance for liquefied natural gas facilities (sunset in 2024)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Accelerated capital cost allowance for liquefied natural gas facilities (sunset in 2024)	CIT	X	X	X	X	X	X	X	X	Tax expenditure	Business - natural resources	Non-structural
Accelerated capital cost allowance for mining and oil sands assets (phased out)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Accelerated capital cost allowance for mining and oil sands assets (phased out)	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Accelerated deductibility of some Canadian Exploration Expenses (phased out)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Accelerated deductibility of some Canadian Exploration Expenses (phased out)	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Corporate Mineral Exploration and Development Tax Credit (phased out)	CIT	4	45	15	40	30	30	30	30	Tax expenditure	Business - natural resources	Non-structural
Critical Mineral Exploration Tax Credit for Flow-Through Share Investors	PIT	–	–	–	85	255	225	225	225	Tax expenditure	Business - natural resources	Non-structural
Earned depletion (phased out)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - natural resources	Non-structural
Earned depletion (phased out)	CIT	S	1	S	S	S	S	S	S	Tax expenditure	Business - natural resources	Non-structural
Flow-through share deductions	PIT	120	175	265	195	300	320	325	295	Tax expenditure	Business - natural resources	Non-structural
Flow-through share deductions	CIT	20	25	55	55	80	85	80	65	Tax expenditure	Business - natural resources	Non-structural
Mineral Exploration Tax Credit for Flow-Through Share Investors (sunset in 2025)	PIT	60	100	145	60	45	60	-10	-4	Tax expenditure	Business - natural resources	Non-structural
Reclassification of expenses under flow-through shares (phased out)	PIT	-3	-2	-2	-1	-1	-1	S	S	Tax expenditure	Business - natural resources	Non-structural
Reclassification of expenses under flow-through shares (phased out)	CIT	S	S	S	S	S	S	S	S	Tax expenditure	Business - natural resources	Non-structural
Expensing of current expenditures on scientific research and experimental development	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - research and development	Non-structural
Expensing of current expenditures on scientific research and experimental development	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - research and development	Non-structural
Scientific Research and Experimental Development Investment Tax Credit (non-refundable portion for CIT)	PIT	1	1	1	1	1	1	1	1	Tax expenditure	Business - research and development	Non-structural
Scientific Research and Experimental Development Investment Tax Credit (non-refundable portion for CIT)	CIT	1,430	1,460	1,865	1,910	1,870	1,950	2,065	2,155	Tax expenditure	Business - research and development	Non-structural
Small suppliers' threshold	GST	270	180	210	260	275	280	285	295	Tax expenditure	Business - small businesses	Structural
Deduction of allowable business investment losses	PIT	50	40	40	30	30	40	40	50	Tax expenditure	Business - small businesses	Non-structural
Deduction of allowable business investment losses	TRU	1	S	S	1	1	1	1	1	Tax expenditure	Business - small businesses	Non-structural
Deduction of allowable business investment losses	CIT	10	15	15	5	10	10	15	15	Tax expenditure	Business - small businesses	Non-structural
Non-taxation of provincial assistance for venture investments in small businesses	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - small businesses	Non-structural
Non-taxation of provincial assistance for venture investments in small businesses	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - small businesses	Non-structural
Preferential tax rate for small businesses	CIT	4,895	5,345	6,430	6,580	6,570	6,295	6,040	6,530	Tax expenditure	Business - small businesses	Non-structural
Rollovers of investments in small businesses	PIT	10	10	15	10	10	10	10	15	Tax expenditure	Business - small businesses	Non-structural
Deductibility of costs of capital assets and eligibility for investment tax credits before asset is put in use	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deductibility of costs of capital assets and eligibility for investment tax credits before asset is put in use	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deductibility of earthquake reserves	CIT	S	S	-1	S	S	1	1	1	Tax expenditure	Business - other	Structural
Deferral through five-year capital gain reserve	PIT	15	20	35	25	25	25	25	30	Tax expenditure	Business - other	Structural
Deferral through five-year capital gain reserve	TRU	-3	S	3	20	S	S	S	S	Tax expenditure	Business - other	Structural
Deferral through five-year capital gain reserve	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deferral through rollover of capital gains and capital cost allowance recapture in respect of involuntary dispositions	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deferral through rollover of capital gains and capital cost allowance recapture in respect of involuntary dispositions	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deferral through use of billed-basis accounting by professionals and professional corporations	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Deferral through use of billed-basis accounting by professionals and professional corporations	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Exemption from branch tax for transportation, communications, and iron ore mining corporations	CIT	X	X	X	X	X	X	X	X	Tax expenditure	Business - other	Structural
Exemption from GST for domestic financial services	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Expensing of advertising costs	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Expensing of advertising costs	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Expensing of incorporation expenses	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Holdback on progress payments to contractors	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Structural
Holdback on progress payments to contractors	CIT	65	65	100	140	185	190	200	205	Tax expenditure	Business - other	Structural
Tax status of certain federal Crown corporations	CIT	X	X	X	X	X	X	X	X	Tax expenditure	Business - other	Structural
Accelerated capital cost allowance for manufacturing or processing machinery and equipment (sunset in 2025)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Accelerated capital cost allowance for manufacturing or processing machinery and equipment (sunset in 2025)	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Accelerated capital cost allowance for productivity-enhancing assets	CIT	–	–	–	–	–	965	675	525	Tax expenditure	Business - other	Non-structural
Accelerated capital cost allowance for productivity-enhancing assets	PIT	–	–	–	–	–	20	15	10	Tax expenditure	Business - other	Non-structural
Accelerated capital cost allowance for vessels	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Accelerated capital cost allowance for vessels	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Accelerated Investment Incentive	PIT/CIT	4,130	2,565	2,695	2,475	1,910	-790	2,135	2,120	Tax expenditure	Business - other	Non-structural
Additional Tax on Banks and Life Insurers	CIT	–	–	–	-250	-305	-325	-405	-490	Tax expenditure	Business - other	Non-structural
Atlantic Investment Tax Credit (non-refundable portion for CIT)	PIT	10	10	10	10	10	10	10	10	Tax expenditure	Business - other	Non-structural
Atlantic Investment Tax Credit (non-refundable portion for CIT)	CIT	230	100	190	330	155	150	145	155	Tax expenditure	Business - other	Non-structural
Canada Recovery Dividend	CIT	–	–	–	-695	-695	-695	-695	-695	Tax expenditure	Business - other	Non-structural
Canadian Entrepreneurs' Incentive	PIT	–	–	–	–	–	–	125	270	Tax expenditure	Business - other	Non-structural
Deferral for asset transfers to a corporation and corporate reorganizations	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Deferral for asset transfers to a corporation and corporate reorganizations	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Deferral through rollover of capital gains and capital cost allowance recapture in respect of dispositions of land and buildings	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Deferral through rollover of capital gains and capital cost allowance recapture in respect of dispositions of land and buildings	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Deferral through ten-year capital gain reserve	PIT	45	35	95	75	70	70	70	70	Tax expenditure	Business - other	Non-structural
Employee Ownership Capital Gains Exemption	PIT	–	–	–	–	S	10	15	35	Tax expenditure	Business - other	Non-structural
Expensing of employee training costs	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Expensing of employee training costs	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Foreign Convention and Tour Incentive Program	GST	5	1	S	2	5	5	5	5	Tax expenditure	Business - other	Non-structural
Immediate expensing for small businesses	PIT	–	–	–	335	260	210	-205	-150	Tax expenditure	Business - other	Non-structural
Immediate expensing for small businesses	CIT	–	–	690	1,210	1,000	-410	-740	-560	Tax expenditure	Business - other	Non-structural
Lifetime Capital Gains Exemption	PIT	1,805	1,725	2,550	2,625	2,550	2,630	2,705	3,410	Tax expenditure	Business - other	Non-structural
Non-deductibility of advertising expenses in foreign media	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Business - other	Non-structural
Non-deductibility of advertising expenses in foreign media	CIT	S	S	S	S	S	S	S	S	Tax expenditure	Business - other	Non-structural
Tax on Repurchases of Equity	CIT	–	–	–	–	–	-425	-600	-635	Tax expenditure	Business - other	Non-structural
Additional deduction for gifts of medicine (repealed)	CIT	X	X	X	X	–	–	–	–	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Charitable Donation Tax Credit	PIT	3,060	3,290	3,615	3,690	3,925	3,930	3,995	4,240	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Charitable Donation Tax Credit	TRU	45	70	65	45	45	50	50	50	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Deductibility of charitable donations	CIT	915	775	1,090	1,045	910	875	840	905	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Deduction for certain contributions by individuals who have taken vows of perpetual poverty	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Exemption from GST for certain supplies made by charities and non-profit organizations	GST	1,405	1,490	1,530	1,610	1,735	1,860	1,930	1,995	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of cultural property	PIT	3	5	5	4	4	4	4	5	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of cultural property	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of ecologically sensitive land	PIT	2	2	3	4	3	3	3	4	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of ecologically sensitive land	TRU	S	S	S	S	S	S	S	S	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of ecologically sensitive land	CIT	1	S	1	2	10	5	5	5	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of publicly listed securities	PIT	125	100	135	95	175	80	85	125	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of publicly listed securities	TRU	1	1	3	1	2	1	1	1	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of capital gains on donations of publicly listed securities	CIT	225	170	200	95	110	150	125	160	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of non-profit organizations	PIT/CIT	90	50	100	210	260	270	260	280	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of registered charities	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Non-taxation of registered charities	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Rebate for poppies and wreaths	GST	X	X	X	X	X	X	X	X	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Rebate for qualifying non-profit organizations	GST	85	80	90	100	105	105	110	115	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Rebate for registered charities	GST	335	300	340	395	435	450	470	490	Tax expenditure	Donations, gifts, charities, and non-profit organizations	Non-structural
Deduction for tuition assistance for adult basic education	PIT	2	3	3	5	10	5	5	5	Tax expenditure	Education	Structural
Education Tax Credit (phasing out)	PIT	230	190	115	45	S	S	S	S	Tax expenditure	Education	Structural
Textbook Tax Credit (phasing out)	PIT	35	30	20	5	S	S	S	S	Tax expenditure	Education	Structural
Tuition Tax Credit	PIT	1,735	2,100	2,065	2,030	2,255	2,295	2,315	2,350	Tax expenditure	Education	Structural
Exemption from GST for tuition and educational services	GST	945	935	975	1,060	1,120	1,200	1,250	1,305	Tax expenditure	Education	Non-structural
Exemption of scholarship, fellowship and bursary income	PIT	585	705	690	725	760	770	735	750	Tax expenditure	Education	Non-structural
Rebate for book purchases made by certain organizations	GST	15	10	10	10	10	10	15	15	Tax expenditure	Education	Non-structural
Rebate for schools, colleges and universities	GST	860	795	875	1,000	1,110	1,150	1,185	1,225	Tax expenditure	Education	Non-structural
Registered Education Savings Plans	PIT	125	110	130	170	220	290	400	490	Tax expenditure	Education	Non-structural
Student Loan Interest Credit	PIT	55	25	20	15	25	25	25	25	Tax expenditure	Education	Non-structural
Apprentice vehicle mechanics' tools deduction	PIT	3	4	5	5	5	5	5	5	Tax expenditure	Employment	Structural
Canada Employment Credit	PIT	2,595	2,750	2,755	2,830	3,090	3,305	3,405	3,495	Tax expenditure	Employment	Structural
Child Care Expense Deduction	PIT	1,325	975	1,210	1,280	1,260	1,200	1,170	1,095	Tax expenditure	Employment	Structural
Deductibility of certain costs incurred by musicians	PIT	1	1	1	1	1	1	1	1	Tax expenditure	Employment	Structural
Deductibility of expenses by employed artists	PIT	S	S	S	S	S	S	S	S	Tax expenditure	Employment	Structural
Deduction for tradespeople's tool expenses	PIT	2	2	2	2	4	4	4	4	Tax expenditure	Employment	Structural
Deduction of other employment expenses	PIT	920	1,145	1,270	1,265	1,320	1,350	1,395	1,440	Tax expenditure	Employment	Structural
Deduction of union and professional dues	PIT	1,075	1,075	1,160	1,210	1,310	1,335	1,370	1,420	Tax expenditure	Employment	Structural
Labour Mobility Deduction for Tradespeople	PIT	–	–	–	2	1	1	2	2	Tax expenditure	Employment	Structural
Moving expense deduction	PIT	110	105	150	165	145	140	140	140	Tax expenditure	Employment	Structural
Non-taxation of allowances for diplomats and other government employees posted abroad	PIT	35	35	35	30	35	40	n.a.	n.a.	Tax expenditure	Employment	Structural
Non-taxation of certain non-monetary employment benefits	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Employment	Structural
Rebate to employees and partners	GST	50	40	40	45	45	50	50	55	Tax expenditure	Employment	Structural
Apprenticeship Job Creation Tax Credit	PIT	1	1	1	1	1	1	1	1	Tax expenditure	Employment	Non-structural
Apprenticeship Job Creation Tax Credit	CIT	85	95	95	90	100	105	105	110	Tax expenditure	Employment	Non-structural
Employee benefit plans	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Employment	Non-structural
Employee stock option deduction	PIT	920	920	1,645	1,130	870	1,015	960	820	Tax expenditure	Employment	Non-structural
Non-taxation of income earned by military and police deployed to international operational missions	PIT	40	30	35	35	40	40	n.a.	n.a.	Tax expenditure	Employment	Non-structural
Northern Residents Deductions	PIT	230	220	230	240	245	245	250	255	Tax expenditure	Employment	Non-structural
Deductibility of contributions to a qualifying environmental trust	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Environment	Structural
Deductibility of contributions to a qualifying environmental trust	CIT	50	50	45	50	50	50	50	50	Tax expenditure	Environment	Structural
Accelerated capital cost allowance for clean energy generation equipment (Class 43.2 sunset in 2024)	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Environment	Non-structural
Accelerated capital cost allowance for clean energy generation equipment (Class 43.2 sunset in 2024)	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Environment	Non-structural
Accelerated capital cost allowance for zero-emission automotive equipment and vehicles (sunset in 2027)	PIT/CIT	1	4	5	15	10	10	15	10	Tax expenditure	Environment	Non-structural
Accelerated deductibility of Canadian Renewable and Conservation Expenses	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Environment	Non-structural
Accelerated deductibility of Canadian Renewable and Conservation Expenses	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Environment	Non-structural
Rate reduction for zero-emission technology manufacturers	CIT	–	–	–	1	20	40	45	55	Tax expenditure	Environment	Non-structural
Adoption Expense Tax Credit	PIT	2	1	2	2	2	2	2	2	Tax expenditure	Families and households	Structural
Canada Caregiver Credit	PIT	235	240	245	250	270	285	295	305	Tax expenditure	Families and households	Structural
Eligible Dependant Credit	PIT	1,025	1,270	1,290	1,230	1,315	1,410	1,470	1,520	Tax expenditure	Families and households	Structural
Goods and Services Tax/Harmonized Sales Tax Credit	GST	4,935	10,450	5,030	7,335	8,120	6,170	6,420	6,555	Tax expenditure	Families and households	Structural
Spouse or Common-law Partner Credit	PIT	1,740	1,685	1,840	2,090	2,230	2,380	2,460	2,530	Tax expenditure	Families and households	Structural
Deferral of capital gains through transfers to a spouse, spousal trust or alter ego trust	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Families and households	Non-structural
Exemption from GST for child care	GST	220	150	200	235	245	265	275	290	Tax expenditure	Families and households	Non-structural
Exemption from GST for personal care services	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Families and households	Non-structural
Investment Tax Credit for Child Care Spaces (phased out)	PIT	S	S	S	S	S	S	S	S	Tax expenditure	Families and households	Non-structural
Investment Tax Credit for Child Care Spaces (phased out)	CIT	X	X	X	X	X	X	X	X	Tax expenditure	Families and households	Non-structural
Non-taxation of up to $10,000 of death benefits	PIT	5	5	5	5	5	10	10	10	Tax expenditure	Families and households	Non-structural
Targeted Temporary GST/HST Relief	GST	–	–	–	–	–	460	1,180	–	Tax expenditure	Families and households	Non-structural
Tax treatment of alimony and maintenance payments	PIT	120	100	105	105	110	115	120	125	Tax expenditure	Families and households	Non-structural
Zero-rating of feminine hygiene products	GST	45	45	50	50	55	55	55	60	Tax expenditure	Families and households	Non-structural
Disability supports deduction	PIT	3	3	3	3	3	3	3	3	Tax expenditure	Health	Structural
Disability Tax Credit	PIT	1,145	1,205	1,340	1,435	1,545	1,635	1,720	1,810	Tax expenditure	Health	Structural
Medical Expense Tax Credit	PIT	1,700	1,530	1,805	1,925	2,200	2,330	2,475	2,650	Tax expenditure	Health	Structural
Exemption from GST for health care services	GST	1,065	885	1,020	1,095	1,155	1,245	1,310	1,385	Tax expenditure	Health	Non-structural
Exemption from GST for hospital parking	GST	15	10	15	15	15	15	20	20	Tax expenditure	Health	Non-structural
Home Accessibility Tax Credit	PIT	15	15	25	40	35	35	40	40	Tax expenditure	Health	Non-structural
Non-taxation of benefits from private health and dental plans	PIT	3,170	3,150	3,530	4,145	4,590	4,825	5,020	5,280	Tax expenditure	Health	Non-structural
Rebate for hospitals, facility operators and external suppliers	GST	750	985	975	1,055	1,205	1,245	1,285	1,325	Tax expenditure	Health	Non-structural
Rebate for specially equipped motor vehicles	GST	S	S	S	S	S	S	S	S	Tax expenditure	Health	Non-structural
Registered Disability Savings Plans	PIT	70	65	90	90	90	105	120	135	Tax expenditure	Health	Non-structural
Zero-rating of face masks and face shields (repealed)	GST	–	5	85	70	50	45	–	–	Tax expenditure	Health	Non-structural
Zero-rating of medical and assistive devices	GST	520	620	690	750	785	820	845	870	Tax expenditure	Health	Non-structural
Zero-rating of prescription drugs	GST	920	945	1,000	1,090	1,160	1,225	1,285	1,350	Tax expenditure	Health	Non-structural
Exemption from GST for sales of used residential housing and other personal-use real property	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Housing	Structural
Accelerated capital cost allowance for purpose-built rental housing	PIT	–	–	–	–	–	S	1	5	Tax expenditure	Housing	Non-structural
Accelerated capital cost allowance for purpose-built rental housing	CIT	–	–	–	–	–	S	20	120	Tax expenditure	Housing	Non-structural
Enhanced rebate for new residential rental property	GST	–	–	–	–	S	20	520	960	Tax expenditure	Housing	Non-structural
Exemption from GST for certain residential rent	GST	2,075	1,980	2,000	2,250	2,530	2,650	2,805	2,880	Tax expenditure	Housing	Non-structural
Exemption from GST for short-term accommodation	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Housing	Non-structural
First-Time Home Buyers' Tax Credit	PIT	110	130	150	240	220	235	255	260	Tax expenditure	Housing	Non-structural
Non-taxation of capital gains on principal residences	PIT	4,890	6,930	12,175	10,595	7,365	8,405	10,745	13,020	Tax expenditure	Housing	Non-structural
Rebate for new housing	GST	420	425	465	400	455	420	410	420	Tax expenditure	Housing	Non-structural
Rebate for new residential rental property	GST	220	225	245	265	285	335	390	455	Tax expenditure	Housing	Non-structural
Tax-Free First Home Savings Account	PIT	–	–	–	–	125	465	595	595	Tax expenditure	Housing	Non-structural
Non-taxation of certain veterans' benefits	PIT	200	185	190	180	180	180	175	175	Tax expenditure	Income support	Non-structural
Non-taxation of Guaranteed Income Supplement and Allowance benefits	PIT	235	245	210	225	380	400	425	485	Tax expenditure	Income support	Non-structural
Non-taxation of investment income on certain amounts received as damages in respect of personal injury or death	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Income support	Non-structural
Non-taxation of RCMP pensions and other compensation in respect of injury, disability or death	PIT	50	55	70	80	100	110	125	140	Tax expenditure	Income support	Non-structural
Non-taxation of social assistance benefits	PIT	340	425	370	300	340	330	345	365	Tax expenditure	Income support	Non-structural
Non-taxation of workers' compensation benefits	PIT	755	830	855	880	935	955	980	1,000	Tax expenditure	Income support	Non-structural
Income tax exemption for certain public bodies	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Intergovernmental tax arrangements	Structural
Rebate for municipalities	GST	2,765	2,735	2,855	3,120	3,570	3,775	3,875	3,975	Tax expenditure	Intergovernmental tax arrangements	Structural
Refunds for Indigenous self-governments	GST	10	10	15	15	15	15	15	15	Tax expenditure	Intergovernmental tax arrangements	Structural
Logging Tax Credit	PIT	1	1	2	3	3	3	3	3	Tax expenditure	Intergovernmental tax arrangements	Non-structural
Logging Tax Credit	TRU	X	X	X	X	X	X	X	X	Tax expenditure	Intergovernmental tax arrangements	Non-structural
Logging Tax Credit	CIT	25	60	265	195	55	65	70	65	Tax expenditure	Intergovernmental tax arrangements	Non-structural
Deductibility of countervailing and anti-dumping duties when paid	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Deductibility of countervailing and anti-dumping duties when paid	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Exemption for international shipping and aviation by non-residents	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Exemption for international shipping and aviation by non-residents	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Non-taxation of certain importations	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Non-taxation of life insurance companies' foreign income	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Structural
Travellers' exemption	GST	330	80	100	290	340	365	380	400	Tax expenditure	International	Structural
Exemption for income of Canadian resident companies from international shipping	CIT	–	–	–	–	–	n.a.	n.a.	n.a.	Tax expenditure	International	Non-structural
Exemptions from non-resident withholding tax	PIT/CIT	8,840	8,975	11,585	13,385	12,835	13,355	13,840	14,420	Tax expenditure	International	Non-structural
Tax treatment of active business income of foreign affiliates of Canadian corporations and deductibility of expenses incurred to invest in foreign affiliates	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	International	Non-structural
Deferred Profit-sharing Plans	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Retirement	Non-structural
Partial inclusion of U.S. Social Security benefits	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Retirement	Non-structural
Pension Income Credit	PIT	1,255	1,270	1,300	1,335	1,365	1,400	1,435	1,485	Tax expenditure	Retirement	Non-structural
Pension income splitting	PIT	1,415	1,470	1,520	1,615	1,645	1,755	1,895	2,040	Tax expenditure	Retirement	Non-structural
Pooled Registered Pension Plans	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Retirement	Non-structural
Registered Pension Plans	PIT	26,155	22,755	27,735	19,500	22,085	24,815	25,165	25,700	Tax expenditure	Retirement	Non-structural
Registered Retirement Savings Plans	PIT	16,195	15,430	19,440	12,090	13,460	14,720	14,785	14,855	Tax expenditure	Retirement	Non-structural
Saskatchewan Pension Plan	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Retirement	Non-structural
$200 capital gains exemption on foreign exchange transactions	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Savings and investment	Structural
Capital gains exemption on personal-use property	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Savings and investment	Structural
Capital gains exemption on personal-use property	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Savings and investment	Structural
Tax treatment of investment income from life insurance policies	PIT	230	235	230	245	270	305	325	380	Tax expenditure	Savings and investment	Structural
Taxation of capital gains upon realization	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Savings and investment	Structural
Taxation of capital gains upon realization	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Savings and investment	Structural
Labour-Sponsored Venture Capital Corporations Credit	PIT	160	180	175	185	190	200	205	215	Tax expenditure	Savings and investment	Non-structural
Partial inclusion of capital gains	PIT	8,095	9,970	19,535	14,045	13,410	14,010	12,750	11,885	Tax expenditure	Savings and investment	Non-structural
Partial inclusion of capital gains	TRU	1,225	1,525	2,465	1,415	1,125	1,810	1,220	1,270	Tax expenditure	Savings and investment	Non-structural
Partial inclusion of capital gains	CIT	12,100	11,090	18,110	18,840	14,375	25,190	16,285	11,505	Tax expenditure	Savings and investment	Non-structural
Tax-Free Savings Account	PIT	1,895	1,700	3,220	2,005	2,685	3,675	4,325	5,010	Tax expenditure	Savings and investment	Non-structural
Age Credit	PIT	3,820	3,945	3,990	4,140	4,665	5,060	5,385	5,705	Tax expenditure	Social	Non-structural
Credit for subscriptions to Canadian digital news media	PIT	–	10	15	15	15	15	15	15	Tax expenditure	Social	Non-structural
Deduction for clergy residence	PIT	95	95	100	100	105	105	110	110	Tax expenditure	Social	Non-structural
Exemption from GST and rebate for legal aid services	GST	50	45	50	55	55	60	60	65	Tax expenditure	Social	Non-structural
Exemption from GST for ferry, road and bridge tolls	GST	15	10	10	15	15	15	15	15	Tax expenditure	Social	Non-structural
Exemption from GST for municipal transit	GST	235	110	110	165	195	210	220	230	Tax expenditure	Social	Non-structural
Exemption from GST for water, sewage and basic garbage collection services	GST	335	365	385	410	440	475	500	520	Tax expenditure	Social	Non-structural
Political Contribution Tax Credit	PIT	45	30	40	30	35	35	45	35	Tax expenditure	Social	Non-structural
Search and Rescue Volunteers Tax Credit	PIT	2	2	2	2	2	5	5	5	Tax expenditure	Social	Non-structural
Tax-free amount for emergency services volunteers	PIT	3	3	3	3	3	3	3	3	Tax expenditure	Social	Non-structural
Volunteer Firefighters Tax Credit	PIT	15	15	20	15	20	35	35	35	Tax expenditure	Social	Non-structural
Zero-rating of basic groceries	GST	4,885	5,375	5,470	5,800	6,235	6,510	6,785	7,060	Tax expenditure	Social	Non-structural
Non-taxation of personal property of status Indians and Indian bands situated on reserve	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Other	Non-structural
Non-taxation of personal property of status Indians and Indian bands situated on reserve	GST	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax expenditure	Other	Non-structural
Non-capital loss carry-overs	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Business - other	Structural
Non-capital loss carry-overs	TRU	270	175	205	305	240	230	220	240	Tax measure other than tax expenditure	Business - other	Structural
Non-capital loss carry-overs	CIT	8,650	8,735	11,230	14,595	12,130	11,535	11,175	11,830	Tax measure other than tax expenditure	Business - other	Structural
Partial deduction of and partial input tax credits for meals and entertainment	PIT	200	135	170	215	220	225	225	225	Tax measure other than tax expenditure	Business - other	Structural
Partial deduction of and partial input tax credits for meals and entertainment	CIT	335	225	195	325	395	375	360	390	Tax measure other than tax expenditure	Business - other	Structural
Partial deduction of and partial input tax credits for meals and entertainment	GST	190	125	115	170	170	175	175	180	Tax measure other than tax expenditure	Business - other	Structural
Non-taxation of strike pay	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Employment	Structural
Tax treatment of Canada Pension Plan and Quebec Pension Plan contributions and benefits	PIT	11,540	11,845	13,860	15,720	17,565	18,990	20,300	21,010	Tax measure other than tax expenditure	Employment	Structural
Tax treatment of Employment Insurance and Quebec Parental Insurance Plan premiums and benefits	PIT	4,330	4,180	4,615	5,075	5,550	5,935	6,080	6,265	Tax measure other than tax expenditure	Employment	Structural
Non-taxation of lottery and gambling winnings	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Quebec Abatement	PIT	5,415	5,515	6,270	6,655	6,985	7,470	7,750	8,005	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Quebec Abatement	TRU	90	135	215	120	130	165	185	185	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Transfer of income tax points to provinces	PIT	25,270	26,130	29,155	30,800	32,800	34,785	36,120	37,335	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Transfer of income tax points to provinces	TRU	875	1,050	1,470	825	945	1,255	1,315	1,330	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Transfer of income tax points to provinces	CIT	3,435	3,680	5,250	5,380	5,365	5,605	5,995	6,295	Tax measure other than tax expenditure	Intergovernmental tax arrangements	Structural
Foreign tax credit for individuals	PIT	1,975	1,925	2,075	2,310	2,435	2,565	2,640	2,730	Tax measure other than tax expenditure	International	Structural
Foreign tax credit for individuals	TRU	45	45	85	60	60	65	65	65	Tax measure other than tax expenditure	International	Structural
Capital loss carry-overs	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Savings and investment	Structural
Capital loss carry-overs	TRU	995	785	1,930	410	475	495	460	595	Tax measure other than tax expenditure	Savings and investment	Structural
Capital loss carry-overs	CIT	560	1,015	915	955	820	1,065	845	1,055	Tax measure other than tax expenditure	Savings and investment	Structural
Deduction of interest and carrying charges incurred to earn investment income	PIT	1,950	1,900	2,280	2,465	2,850	2,955	2,990	3,085	Tax measure other than tax expenditure	Savings and investment	Structural
Deduction of interest and carrying charges incurred to earn investment income	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Savings and investment	Structural
Dividend gross-up and tax credit	PIT	4,895	4,660	5,225	5,820	6,425	6,700	7,275	7,580	Tax measure other than tax expenditure	Savings and investment	Structural
Dividend gross-up and tax credit	TRU	280	280	350	460	510	530	550	570	Tax measure other than tax expenditure	Savings and investment	Structural
Investment corporation deduction	CIT	S	S	S	S	S	S	S	S	Tax measure other than tax expenditure	Savings and investment	Structural
Non-taxation of capital dividends	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Savings and investment	Structural
Non-taxation of capital dividends	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	Tax measure other than tax expenditure	Savings and investment	Structural
Refundable capital gains tax for investment corporations, mutual fund corporations and mutual fund trusts	TRU	5,275	6,140	8,325	3,475	4,555	4,765	4,415	5,735	Tax measure other than tax expenditure	Savings and investment	Structural
Refundable capital gains tax for investment corporations, mutual fund corporations and mutual fund trusts	CIT	1,085	1,115	1,985	1,210	495	1,150	1,190	1,655	Tax measure other than tax expenditure	Savings and investment	Structural
Credit for the Basic Personal Amount	PIT	38,780	44,575	46,200	47,720	51,360	55,110	57,015	58,815	Tax measure other than tax expenditure	Other	Structural
Non-taxation of payments to Canadian Armed Forces members and veterans in respect of pain and suffering	PIT	295	300	395	400	445	460	420	350	Tax measure other than tax expenditure	Other	Structural
Refundable taxes on investment income of private corporations	CIT	-2,925	-3,105	-5,290	-6,445	-5,255	-7,810	-9,045	-8,365	Tax measure other than tax expenditure	Other	Structural
Special tax computation for certain retroactive lump-sum payments	PIT	2	S	1	1	1	1	1	1	Tax measure other than tax expenditure	Other	Structural
10% Temporary Wage Subsidy for Employers	PIT/CIT	–	1,770	–	–	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A
Atlantic Investment Tax Credit (refundable portion)	CIT	25	25	25	30	30	30	30	35	Refundable tax credit classified as transfer payment	Business - other	N/A
Canada Child Benefit	PIT	24,300	26,800	24,500	24,600	26,300	28,200	29,600	30,600	Refundable tax credit classified as transfer payment	Families and households	N/A
Quarterly payments for families with young children entitled to the Canada Child Benefit (2021) – Children's Benefits	PIT	–	560	1,680	–	–	–	–	–	Refundable tax credit classified as transfer payment	Families and households	N/A
Canada Emergency Rent Subsidy & Lockdown Support	PIT/CIT	–	2,060	5,495	–	–	–	–	–	Refundable tax credit classified as transfer payment	Business - other	N/A
Canada Emergency Wage Subsidy	PIT/CIT	–	70,400	29,480	–	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A
Canada Recovery Hiring Program	PIT/CIT	–	–	950	475	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A
Canada Training Credit	PIT	S	100	180	215	245	270	290	310	Refundable tax credit classified as transfer payment	Employment	N/A
Canada Workers Benefit	PIT	2,005	900	2,400	3,290	4,410	4,880	5,055	5,135	Refundable tax credit classified as transfer payment	Employment	N/A
Canadian Film or Video Production Tax Credit	CIT	300	255	295	375	405	520	540	565	Refundable tax credit classified as transfer payment	Arts and culture	N/A
Canadian Journalism Labour Tax Credit	PIT	n.a.	1	S	S	S	S	S	S	Refundable tax credit classified as transfer payment	Business - other	N/A
Canadian Journalism Labour Tax Credit	CIT	35	35	40	40	70	70	75	75	Refundable tax credit classified as transfer payment	Business - other	N/A
Carbon Capture, Utilization and Storage Investment Tax Credit	CIT	–	–	–	25	100	300	720	1,365	Refundable tax credit classified as transfer payment	Environment	N/A
Clean Electricity Investment Tax Credit	CIT	–	–	–	–	–	970	1,175	1,455	Refundable tax credit classified as transfer payment	Environment	N/A
Clean Hydrogen Investment Tax Credit	CIT	–	–	–	–	75	150	840	2,090	Refundable tax credit classified as transfer payment	Environment	N/A
Clean Technology Investment Tax Credit	CIT	–	–	–	–	795	1,000	1,205	1,395	Refundable tax credit classified as transfer payment	Environment	N/A
Clean Technology Manufacturing Investment Tax Credit	PIT	–	–	–	–	–	S	S	S	Refundable tax credit classified as transfer payment	Environment	N/A
Clean Technology Manufacturing Investment Tax Credit	CIT	–	–	–	–	–	805	1,035	1,150	Refundable tax credit classified as transfer payment	Environment	N/A
EV Supply Chain Investment Tax Credit	CIT	–	–	–	–	–	–	–	–	Refundable tax credit classified as transfer payment	Environment	N/A
Film or Video Production Services Tax Credit	CIT	330	355	435	480	475	540	560	585	Refundable tax credit classified as transfer payment	Arts and culture	N/A
Hardest-Hit Business Recovery Program	PIT/CIT	–	–	305	340	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A
Local Lockdown Program	PIT/CIT	–	–	n.a.	n.a.	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A
Multigenerational Home Renovation Tax Credit	PIT	–	–	–	–	25	25	25	25	Refundable tax credit classified as transfer payment	Housing	N/A
Refundable Medical Expense Supplement	PIT	170	120	150	185	215	235	245	255	Refundable tax credit classified as transfer payment	Health	N/A
Scientific Research and Experimental Development Investment Tax Credit (refundable portion)	CIT	1,840	1,845	1,980	2,295	2,385	2,480	2,830	2,940	Refundable tax credit classified as transfer payment	Business – research and development	N/A
Small Businesses Air Quality Improvement Tax Credit	PIT	–	–	–	2	5	–	–	–	Refundable tax credit classified as transfer payment	Health	N/A
Small Businesses Air Quality Improvement Tax Credit	CIT	–	–	–	1	S	–	–	–	Refundable tax credit classified as transfer payment	Health	N/A
Teacher and Early Childhood Educator School Supply Tax Credit	PIT	5	5	10	10	10	10	15	15	Refundable tax credit classified as transfer payment	Education	N/A
Tourism and Hospitality Recovery Program	PIT/CIT	–	–	1,050	1,650	–	–	–	–	Refundable tax credit classified as transfer payment	Employment	N/A

Estimates and Projections
millions of dollars

		Estimates				Projections
		2019	2020	2021	2022	2023	2024	2025	2026
Tax expenditures
Fossil fuel sector
Non-structural
Accelerated capital cost allowance for liquefied natural gas facilities (sunset in 2024)1	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
	CIT	X	X	X	X	X	X	X	X
Accelerated capital cost allowance for coal mining and oil sands assets (phased out)1	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Accelerated deductibility of some pre-production development expenses of oil sands mines, pre-production development expenses of coal mines, and for oil and gas discovery wells (all phased out)1	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
	CIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
Earned depletion for oil and gas and coal mining (phased out)2	PIT	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.	n.a.
	CIT	S	1	S	S	S	S	S	S
Flow-through share deductions for oil and gas and coal mining (phased out)3	PIT	5	3	3	3	2	2	1	1
	CIT	10	5	5	5	5	4	3	2
Reclassification of expenses under flow-through shares (phased out)4	PIT	-3	-2	-2	-1	-1	-1	S	S
	CIT	S	S	S	S	S	S	S	S
Atlantic Investment Tax Credit for oil and gas and coal mining (non-refundable portion for CIT, phased out)5	PIT	S	S	S	S	S	S	S	S
	CIT	X	X	X	X	X	X	X	X
1 For more information on the costing of accelerated deductions and the difficulties in providing accurate estimates, see the annex to Part 1. 2 While corporations have not been able to add expenditures to the earned depletion base since 1989, expenses incurred prior to that year could be pooled and carried forward indefinitely, as is generally the case for depreciable capital expenses. 3 Budget 2022 announced the elimination of the flow-through share regime for fossil fuel sector activities. This will be done by no longer allowing expenditures related to oil, gas, and coal exploration and development to be renounced to flow-through share investors for flow-through share agreements entered into after March 31, 2023. 4 A negative number represents an increase in revenue. While this measure currently results in an increase in government revenues, it has previously resulted in a cost to government, consistent with the intent of the measure to provide a preference to the oil and gas sector. For more information on the costing of accelerated deductions, see the annex to Part 1. 5 Unused credits accumulated prior to the complete phase-out of the measure in 2017 can be carried forward indefinitely.

Background Statistics
Federal Revenues, Fiscal Year 2024–2025

	Revenues (billions of dollars)	Share of total revenues (%)	Share of gross domestic product (%)
Personal income taxes	218.0	47.8	7.6
Corporate income taxes	79.8	17.5	2.8
Non-resident withholding taxes	13.4	2.9	0.5
Goods and Services Tax	52.1	11.4	1.8
Other excise duties and taxes and customs import duties	18.8	4.1	0.7
Total tax revenues	382.1	83.8	13.3
Non-tax revenues	74.1	16.2	2.6
Total revenues	456.2	100.0	15.9
Notes: Non-tax revenues include revenues from consolidated Crown corporations, net income from enterprise Crown corporations, returns on investments, foreign exchange revenues, proceeds from the sales of goods and services, proceeds from the pollution pricing framework, and Employment Insurance premium revenues. Totals may not add due to rounding. Source: Department of Finance Canada, 2024 Fall Economic Statement.

Changes to Tax Expenditures Since the 2024 Edition

New tax measures were introduced and others modified since the last edition of this report. Changes affecting tax expenditures in this report are described below. As this report considers tax expenditures as of December 31, 2024, changes announced in Budget 2024 as well as the 2024 Fall Economic Statement are included below even if the enacting legislation has not received Royal Assent by the time of production of this edition of the report.

Personal Income Tax

Canada Child Benefit

Budget 2024 extended eligibility for the Canada Child Benefit (including the Child Disability Benefit) in respect of a child for six months after the child's death, if the individual would have otherwise been eligible for the benefit in respect of the particular child, effective for deaths that occur after 2024.  

Canadian Entrepreneurs' Incentive

Budget 2024 proposed to introduce the Canadian Entrepreneurs' Incentive (CEI). The CEI would reduce the tax rate on eligible capital gains realized by individuals on the disposition of qualifying CEI property through a one-third inclusion rate, up to a lifetime limit of $2 million. The CEI would be effective for 2025, and subsequent tax years, with the limit phased in over 5 years in $400,000 increments. This measure was subject to Parliamentary approval at the time of preparation of this report.

Capital Gains Rollover on Business Investment

The 2024 Fall Economic Statement proposed to expand what qualifies as an eligible small business corporation (ESBC) share by allowing preferred shares to qualify for the rollover. It also proposed to relax the rules by increasing the asset limit for ESBCs that qualify for investment to $100 million, and by increasing the length of the period to acquire new investments to within the year of disposition and one full calendar year following the year of disposition. This measure was subject to Parliamentary approval at the time of preparation of this report.

Deferral of income from sale of livestock in a region of drought, flood or excessive moisture

In June 2024, eligibility to the tax deferral was expanded to include farmers in adjacent regions to those experiencing drought, flood or excessive moisture that may also be experiencing similar conditions. This measure is effective for the 2024 and subsequent taxation years.

Disability Supports Deduction and Medical Expense Tax Credit

Budget 2024 proposed to expand the list of expenses recognized under the Disability Supports Deduction, to include certain expenses, such as for a service animal or a navigation device for low vision, subject to specified conditions, effective for the 2024 and subsequent taxation years. A consequential change was subsequently proposed to the Medical Expense Tax Credit, to expand the list of eligible expenses for that credit to include a navigation device for low vision, effective for the 2024 and subsequent taxation years. The government also committed to consulting on the list of expenses eligible under the Disability Supports Deduction every four years, beginning in 2028. These measures were subject to Parliamentary approval at the time of preparation of this report

Employee Ownership Capital Gains Exemption

The 2023 Fall Economic Statement introduced a $10 million exemption on capital gains realized by individuals on a qualifying business transfer to an employee ownership trust. This measure would be effective for the 2024, 2025, and 2026 tax years. Budget 2024 proposed to extend this exemption on capital gains realized by individuals on a qualifying cooperative conversion to a worker cooperative. This change was subject to Parliamentary approval at the time of preparation of this report.

Employee Stock Option Deduction

As a result of the changes to the capital gains inclusion rate proposed in Budget 2024, the deduction rate on the taxable benefit on employee stock options was reduced from one-half to one-third. This change would be in effect for stock options exercised on, or after June 25, 2024, or in case of a CCPC share, where the share is disposed or exchanged on or after June 25, 2024. The deduction could be increased to one half on up to a combined annual limit of $250,000 for both employee stock options benefits and capital gains. Where the total employee stock option benefits and capital gains exceed $250,000, the allocation of the preferential treatment would be at the taxpayer's discretion. This measure was subject to Parliamentary approval at the time of preparation of this report.

Lifetime Capital Gains Exemption

Budget 2024 proposed to increase the Lifetime Capital Gains Exemption (LCGE) limit for the disposition of qualified small business corporation shares and qualified farm or fishing property to $1.25 million of eligible capital gains. This measure would apply to dispositions occurring on or after June 25, 2024, with indexing of the LCGE resuming in 2026. This measure was subject to Parliamentary approval at the time of preparation of this report.

Mineral Exploration Tax Credit for Flow-Through Share Investors

Budget 2024 extended the 15-per-cent Mineral Exploration Tax Credit for investors in flow-through shares for an additional year, until March 31, 2025.

Partial Inclusion of Capital Gains

Budget 2024 proposed to increase the capital gains inclusion rate from one-half to two-thirds on the portion of capital gains and employee stock options benefit above $250,000 for capital gains realized by individuals on or after June 25, 2024. On January 31, 2025, the government announced the deferral in implementation of this change to the capital gains inclusion rate to January 1, 2026. Capital gains realized prior to this date would be subject to a one-half inclusion rate. This measure was subject to Parliamentary approval at the time of preparation of this report.

Volunteer Firefighters Tax Credit & Search and Rescue Volunteers Tax Credit

Budget 2024 increased the amounts of the Volunteer Firefighters Tax Credit and the Search and Rescue Volunteers Tax Credit from $3,000 to $6,000, effective for the 2024 and subsequent taxation years.

Corporate Income Tax

Accelerated Capital Cost Allowance for Productivity-Enhancing Assets

Budget 2024 announced immediate expensing for new additions of property included in Classes 44, 46, and 50, if the property is acquired on or after April 16, 2024, and becomes available for use before January 1, 2027. The enhanced allowance provides a 100-per-cent first-year deduction and is available for the year in which the property becomes available for use. This measure was subject to Parliamentary approval at the time of preparation of this report.

Accelerated Capital Cost Allowance for Purpose-Built Rental Housing

Budget 2024 announced an accelerated capital cost allowance of ten per cent for new eligible purpose-built rental projects that begin construction on or after April 16, 2024, and before January 1, 2031, and are available for use before January 1, 2036. This measure was subject to Parliamentary approval at the time of preparation of this report.

Accelerated Investment Incentive and Immediate Expensing

The 2024 Fall Economic Statement proposed to fully reinstate the Accelerated Investment Incentive, as well as immediate expensing for manufacturing or processing machinery and equipment, clean energy generation and energy conservation equipment and zero-emission vehicles. These incentives would apply to qualifying property acquired on or after January 1, 2025, and that becomes available for use before 2030. The full re-instatement of these measures would be followed by a four-year phase-out between 2030 and 2033. These measures were subject to Parliamentary approval at the time of preparation of this report.

Clean Electricity Investment Tax Credit

Budget 2024 announced the design and implementation details for a 15-per-cent refundable tax credit for the capital cost of investments in:

• Low-emitting electricity generation systems using energy from wind, solar, water, geothermal, waste biomass, nuclear, or natural gas with carbon capture and storage.
• Stationary electricity storage systems that do not use fossil fuels in operation, such as batteries and pumped hydroelectric storage.
• Transmission of electricity between provinces and territories.

Investors would have to adhere to certain labour requirements, including ensuring that workers are paid prevailing wages and that apprenticeship opportunities are being created, in order to qualify for the 15-per-cent rate. If the labour requirements are not met, investments would receive a 5-per-cent tax credit rate.

The Clean Electricity Investment Tax Credit could be claimed in addition to the Atlantic Investment Tax Credit, but generally not with any other investment tax credit.

Both new projects and the refurbishment of existing facilities would be eligible for the Clean Electricity Investment Tax Credit. Taxable and certain non-taxable entities including corporations owned by municipalities or Indigenous communities, and pension investment corporations would be eligible. 

Provincial and territorial Crown corporations would be able to access the Clean Electricity investment tax credit within jurisdictions that are determined by the Minister of Finance to have satisfied certain conditions, detailed in the 2024 Fall Economic Statement.

The Clean Electricity investment tax credit would generally be available as of April 16, 2024, for projects that did not begin construction before March 28, 2023. The Clean Electricity investment tax credit would be unavailable after 2034. The availability of the tax credit for provincial and territorial Crown corporations for investments within a particular province or territory would differ depending on whether that jurisdiction's government had satisfied certain conditions by June 30, 2025. This measure was subject to Parliamentary approval at the time of preparation of this report.

Clean Hydrogen Investment Tax Credit – Methane Pyrolysis

The 2024 Fall Economic Statement announced the expansion of eligible pathways under the Clean Hydrogen investment tax credit to include hydrogen produced through methane pyrolysis. Previously announced design details and credit rates would apply along with several pathway specific design details, including: a cap on pyrolysis reactor system expenses, the requirement for an "end-use plan" for solid carbon, and a restriction on hydrogen venting/flaring.

The expansion would apply to eligible property that is acquired and becomes available for use in an eligible methane pyrolysis project on or after December 16, 2024. This measure was subject to Parliamentary approval at the time of preparation of this report.

Clean Technology Manufacturing Investment Tax Credit

Budget 2024 proposed to modify eligible expenditures to include investments in eligible property used in qualifying mineral activities, which includes extraction and certain processing activities, that are expected to produce "primarily" (i.e., 50% or more) qualifying materials at mine or well sites. This measure was subject to Parliamentary approval at the time of preparation of this report.

EV Supply Chain Investment Tax Credit

Budget 2024 announced the government's intention to introduce a new EV Supply Chain investment tax credit for investments in buildings used in three key segments of the electric vehicle supply chain, the design and implementation details of which were provided in the 2024 Fall Economic Statement:

• A 10 per cent refundable tax credit rate for Canadian taxable corporations for eligible building property related to three segments of the EV supply chain: EV assembly, EV battery production, and cathode active material production.
• To be eligible for the credit, a corporation (or a group of related corporations) would have to either:
• Acquire at least $100 million in property eligible for the Clean Technology Manufacturing investment tax credit in each of the three segments, or,
• Acquire at least $100 million in property eligible for the Clean Technology Manufacturing investment tax credit in two of the three segments and hold a qualifying minority interest in another corporation that acquires at least $100 million in property eligible for the Clean Technology Manufacturing investment tax credit in the remaining segment.

The credit would apply to eligible building property that is acquired and becomes available for use on or after January 1, 2024. The credit rate would be reduced to 5 per cent for 2033 and 2034, and the credit would no longer be in effect after 2034. This measure was subject to Parliamentary approval at the time of preparation of this report.

Exemption for income of Canadian resident companies from international shipping

The 2023 Fall Economic Statement proposed an extension of the income tax exemption for income earned from international shipping to certain corporations resident in Canada, effective for taxation years beginning on or after December 31, 2023. To be eligible for the exemption in a given taxation year, the corporation must be resident under the common law test of central management and control, its principal business in the year must consist of the operation of ships used primarily in transporting passengers or goods in international traffic and all or substantially all of its gross revenue for the year must be from the operation of ships in transporting such passengers and goods.

Expensing of capital expenditures on scientific research and experimental development

The 2024 Fall Economic Statement proposed to restore the eligibility of capital expenditures for the deduction against income component of the Scientific Research and Experimental Development (SR&ED) tax incentive program. An eligible capital expenditure could be fully deducted for the purpose of determining taxable income in the year the eligible property becomes available for use or carried forward to the extent it is not deducted in the tax year.

This change would apply to property acquired on or after December 16, 2024, and, in the case of lease costs, to amounts that first become payable on or after December 16, 2024. This measure was subject to Parliamentary approval at the time of preparation of this report.

Scientific Research and Experimental Development (SR&ED) Investment Tax Credit

The 2024 Fall Economic Statement proposed to increase the generosity of, and expand eligibility for, the enhanced SR&ED investment tax credit currently available to Canadian-controlled private corporations (CCPCs). It proposed to:

• Increase the expenditure limit on which enhanced credits can be earned from $3 million to $4.5 million, as well as increase the prior-year taxable capital phase-out thresholds for determining a business' expenditure limit from $10 million and $50 million to $15 million and $75 million, respectively.
• Extend eligibility for the enhanced refundable tax credit to eligible Canadian public corporations. Access to the $4.5 million expenditure limit for any given tax year would be phased out based on a corporation's gross revenue. Specifically, the expenditure limit would be reduced on a straight-line basis when the corporation's average gross revenue over the three preceding years is between $15 million and $75 million.
• Provide CCPCs the option to elect to have their expenditure limit for the enhanced SR&ED credit determined based on the same gross revenue phase-out structure proposed for eligible Canadian public corporations.

The proposed new rules to determine eligibility for the enhanced SR&ED credit would apply for taxation years that begin on or after December 16, 2024. These measures were subject to Parliamentary approval at the time of preparation of this report.

Partial Inclusion of Capital Gains

Budget 2024 proposed to increase the capital gains inclusion rate from one-half to two-thirds for corporations and most types of trusts, applicable to capital gains realized on or after June 25, 2024. For tax years that begin before and end on or after June 25, 2024, generally, a blended inclusion rate may apply. On January 31, 2025, the government announced the deferral in implementation of this change to the capital gains inclusion rate to January 1, 2026. This measure was subject to Parliamentary approval at the time of preparation of this report.

Goods and Services Tax

Extension of Enhanced Rental Rebate for Student Residences

Budget 2024 announced that eligibility conditions for the removal of GST for purpose-built rental housing projects would be relaxed for not-for-profit universities, public colleges, and school authorities for new student residences. This measure would apply to projects that begin construction after September 13, 2023 and before 2031, and complete construction before 2036. This measure was subject to Parliamentary approval at the time of preparation of this report.

GST/HST on Face Masks and Face Shields

Budget 2024 proposed to amend the Excise Tax Act to repeal the temporary zero-rating of certain face masks or respirators and certain face shields under the GST/HST. The temporary relief announced in the 2020 Fall Economic Statement was proposed to be in effect until the use of face coverings was no longer broadly recommended by public health officials for the COVID-19 pandemic. This temporary relief was repealed effective May 1, 2024.

Targeted Temporary GST/HST Relief

The Government announced on November 21, 2024 that the GST/HST would be fully and temporarily relieved on select essential goods from December 14, 2024, to February 15, 2025. Specifically, the following goods qualify for the relief. 

• Children's clothing, footwear, diapers, car seats and booster seats;
• Print newspapers and printed books; 
• Christmas trees, whether natural or artificial, including items sold or marketed as such during the holiday season; 
• Food and beverages for human consumption that are currently not zero-rated, including restaurant meals and alcohol beverages (excluding those containing spirits), but excluding cannabis and food or beverages sold in vending machines;
• Select toys designed for use by children under 14 years of age in learning or play that are board games, card games, a toy that imitates another item (e.g., a doll house or a toy car), plush or soft toys, dolls or construction toys;
• Jigsaw puzzles, for all ages; and
• Video-game consoles, controllers or physical game media.