Finance Canada releases 2026 federal tax expenditures report, highlighting investment incentives, household supports, and an evaluation of the Canada Child Benefit
Latest news on WhatsApp أجدد الأخبار على واتسابCanada’s Department of Finance released its 2026 annual Report on Federal Tax Expenditures, detailing estimates of the fiscal cost of federal tax measures and explaining how the figures are calculated, as part of broader transparency around how tax policy supports government priorities.
Finance Canada said the 2026 edition includes additional measures announced in Budget 2025 aimed at fostering investment and growth, including accelerated depreciation measures for manufacturing or processing buildings and for low-carbon liquefied natural gas facilities.
The report also reflects measures first announced in the 2024 Fall Economic Statement, including enhancements to the Scientific Research and Experimental Development (SR&ED) Investment Tax Credit, and extensions of the Accelerated Investment Incentive and immediate expensing measures. It also covers household-support measures such as the First-Time Home Buyers’ GST Rebate and a Top-Up Tax Credit.
In the report itself, Finance Canada outlines the concept of “tax expenditures” as departures from a benchmark tax system that reduce tax revenues to achieve policy objectives, and notes that the publication provides information on more than 200 income tax and GST measures.
Two analytical papers accompany the release. The GBA Plus analysis examines the federal tax system and income distribution across diverse population groups and finds that the personal income tax system contributes to reducing market income disparities. The Canada Child Benefit evaluation finds the program has been effective in reducing child poverty, including among single-mother and two-parent families, and is associated with higher spending on essentials such as food, shelter, clothing and education.
Finance Canada also notes the annual federal tax expenditures report has been published on a yearly basis since 1994.
