While there are a few positive small business measures, overall, the federal budget was a missed opportunity to give entrepreneurs the relief and support they urgently need.
Positive Measures
The return of Accelerated Capital Cost Allowance, a program that incentivizes a business to do faster tax depreciations, and Immediate Expensing, now expanded to include manufacturing and processing buildings, will help some businesses invest in productivity.
The Lifetime Capital Gains Exemption was finally increased to $1.25 million as the government had promised in 2024. This measure will allow entrepreneurs who are selling their business to keep more of their hard-earned profits.
Missed Opportunities
The biggest disappointment in the federal budget is the lack of new tax relief. Small businesses are facing rising cost pressures and ongoing tariff uncertainty, yet the government chose not to provide any small business tax relief.
Many major initiatives also leave small firms out in the cold. The $51-billion Building Communities Fund prioritizes unionized labour, leaving roughly 90% of small businesses unable to participate. The Regional Tariff Response Initiative excludes more than half of small firms due to sector or size limit;. and, the formal cancellation of the proposed Canadian Entrepreneurs’ Incentive removes what could have been an important tool for business succession and long-term planning.
The budget also projects ongoing deficits above $50 billion a year with no path back to balance in sight, adding uncertainty about future taxes and economic stability.
This budget didn’t deliver the support that small businesses need, and CFIB will continue advocating for cost relief.
Become a CFIB member today and join thousands of entrepreneurs across Canada who are standing up for small business.