Canada’s 2025 Federal Budget, tabled on November 4, 2025, introduces a range of measures aimed at stimulating business investment. Central to these initiatives are a new “Productivity Super-Deduction” and enhancements to several existing investment tax credits, all intended to accelerate capital spending and strengthen Canada’s long-term economic competitiveness.

• Streamlining Small Business Investments in Registered Accounts – New rules will simplify how small business investments can be held in registered plans, making it easier for investors to support Canadian entrepreneurs.
• Temporary Personal Support Worker (PSW) Tax Credit – A new refundable tax credit for eligible Personal Support Workers employed by recognized health care institutions will provide additional financial support for essential care providers.
• Immediate Expensing for Manufacturing and Processing Buildings – Businesses can now fully deduct the cost of new or renovated manufacturing and processing buildings in the year they’re first used.
• Elimination of the Underused Housing Tax (UHT) – The UHT will be repealed beginning in 2025, reducing compliance obligations for property owners and improving housing market efficiency.
• Enhanced Support for Business Investment and Productivity – A new Productivity Super Deduction allows accelerated write-offs for investments in equipment, technology, and innovation upgrades to help businesses modernize operations and boost competitiveness.
• New Incentives for Clean Energy and Green Technology Projects – Expanded Clean Economy Investment Tax Credits will apply to renewable energy, clean manufacturing, and critical-mineral projects, opening new investment opportunities in sustainable sectors.
• Encouraging Private Investment Through Tax and Capital Measures – The government’s broader fiscal plan emphasizes attracting private capital through targeted tax incentives and partnerships, creating new avenues for growth.
  

For an in-depth analysis of Budget 2025:
Sun Life Global Investments – Federal Budget 2025 Commentary

To review the full 2025 Federal Budget document:
Our plan: Building Canada strong | Budget 2025

If you have any questions about how these measures may affect your financial plan, investments, or business, please don’t hesitate to reach out.

Warm regards,

Duane Francis