Federal Budget 2026: Canada Creates a Favourable Environment for Innovation and Investment
Ottawa, Ontario, November 5, 2026 - AQT took part today in the closed-door briefing on the 2026 federal budget, ahead of its tabling by the Honourable François-Philippe Champagne, Minister of Finance.
With the budget focused on investment to help businesses of all sizes grow, AQT welcomes several of the announced measures, which could have tangible effects on Quebec technology companies in the coming years. Here are the key changes to watch.
A New Capital Gains Tax Exemption
The government aims to encourage business builders to invest and reinvest their gains in Canada. This measure seeks to close the gap with the United States and put our entrepreneurs on an equal footing. The Canadian Growth Incentive (CGI) has two components: “a new tax exemption for up to $15 million in capital gains realized on the disposition of an eligible successful investment; and an enhanced small business investment rollover, allowing more capital gains tax to be deferred when proceeds are reinvested in another Canadian small business.”
Commercialization Expenses Added to the SR&ED Tax Credit
Following the Quebec government’s announcement that pre-commercialization expenses would be eligible under its Research, Innovation and Commercialization Tax Credit (CRIC), the federal government is following suit by announcing that it will expand eligible activities and expenditures under the Scientific Research and Experimental Development (SR&ED) program to include commercialization expenses. This new investment will total $930 million over five years to help businesses bring their products and new technologies to market. The Canada Revenue Agency will provide details on the categories of eligible expenses.
Productivity Super-Deduction Made Permanent
Announced this past September, the productivity super-deduction is now permanent. Software and computer hardware are among the eligible asset categories. AQT welcomes this news, which will provide greater predictability for our CEOs and their clients looking to invest in their businesses.
BDC and EDC: A Merger on the Horizon
To improve access to financing, the government is launching the process to merge the Business Development Bank of Canada (BDC) and Export Development Canada (EDC).
AQT also wishes to highlight several recently announced measures, including the launch of Digital Transformation Canada to deliver better public services, the creation of the National Council on Artificial Intelligence, and defence investments that will benefit innovative businesses.
AQT will continue to monitor new measures and closely follow their implementation over the coming months, providing members with more detailed explanations as information becomes available.
“A step in the right direction. By making certain commercialization expenses eligible for the SR&ED tax credit, the government is addressing a clear need expressed by our members. This announcement will help bridge the gap between product development and commercialization. We will continue to follow this issue closely and keep you informed.”
— Nicole Martel, CEO of AQT
About AQT
We are a community of tech CEOs united by the ambition to build a strong and lasting Quebec legacy. We share a dream bigger than our individual companies, aiming for both growth and long-term sustainability. The leaders of AQT member organizations generate significant economic impact through their expertise in driving the digital transformation of every sector, both nationally and internationally.
For information:
Christophe Audet
Conseiller en affaires gouvernementales et relations publiques
AQT
514 874-2667 x 109 | info@aqt.ca
