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What's new for corporations

This page includes proposed, announced, or enacted corporation income tax changes.

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2025 – Federal

[2025-01-31 Department of Finance announcement]

The federal government is deferring from June 25, 2024, to January 1, 2026, the date on which the capital gains inclusion rate would increase from one-half to two-thirds. It was later announced that this proposed increase was cancelled. 

2025 – Provinces and territories

British Columbia

[2025-03-04 Budget]

British Columbia interactive digital media tax credit – The credit rate is increased to 25% (from 17.5%), effective September 1, 2025. The credit, which was set to end August 31, 2028, has been made permanent.

British Columbia clean buildings tax credit – The credit, which was set to end March 31, 2025, is extended one year to March 31, 2026.

British Columbia film and television tax credit – The basic tax credit is increased to 40% (from 35%) for productions that begin principal photography on or after January 1, 2025. Animated productions that begin key animation on or after this date will be eligible for the existing regional and distant location tax credits if the workers are present at a physical office and they meet certain in-office requirements.

British Columbia production services tax credit – The basic production services tax credit is increased to 36% (from 28%) for productions that begin principal photography on or after January 1, 2025. Animated productions that begin key animation on or after this date will be eligible for the existing regional production services and distant location production services tax credits if the workers are present at a physical office and they meet certain in-office requirements.

British Columbia major production tax credit – A new major film or video production tax credit is proposed for BC production services tax credit claimants that have BC production costs more than $200 million. The credit will be equal to 2% of the corporation's accredited qualified BC labour expenditures related to the production and may be claimed once the production is completed. The credit will be available for productions that begin principal photography on or after January 1, 2025.

Manitoba

[2025-03-06 Bill 27]

Manitoba cultural industries printing tax credit – The credit, which was set to end December 31, 2024, is being made permanent. This proposal is deemed to have come into force retroactively on January 1, 2025. 

Newfoundland and Labrador

[2025-02-28 Regulation 25/25]

Newfoundland and Labrador all-spend film and video production tax credit – Effective February 28, 2025, the maximum credit amount is increased from $10 million to $20 million.

Nova Scotia

[2025-02-18 Budget]

Nova Scotia lower rate and small business limit – Effective April 1, 2025, the lower rate of Nova Scotia corporation income tax is decreased from 2.5% to 1.5% and the small business limit is increased from $500,000 to $700,000.

2024 – Federal

[2024-12-16 Fall Economic Statement]

Accelerated investment incentive and immediate expensing

Under proposed changes, the accelerated investment incentive (AII) and immediate expensing measures for certain CCA classes would be reinstated for qualifying property acquired on or after January 1, 2025, and that becomes available for use before 2030, with a four-year phase-out after 2029. 

Canada carbon rebate for small businesses

For the 2024-25 and later fuel charge years:

See the details.

Clean hydrogen ITC

Under proposed changes, effective for property that is acquired and becomes available for use in an eligible project on or after December 16, 2024, the clean hydrogen ITC would be expanded to include projects that produce hydrogen from methane pyrolysis. 

Electric vehicle supply chain ITC

A corporation would have to invest at least $100 million in each of the three segments:

The corporation (either by itself or as part of a related group, such as with a parent company) would have to either:

Scientific research and experimental development

The Government announced that, for tax years that begin on or after December 16, 2024:

For property acquired after December 15, 2024 (or lease costs first becoming payable after that date) the pre-2014 eligibility of capital expenditures would be reinstated to both the SR&ED income deduction and the SR&ED ITC. Qualifying CCPCs eligible to earn a 35% SR&ED ITC would be entitled to partial refundability of the credit at a rate of 40% on their capital expenditures. 

[2024-04-16 Budget]

Accelerated capital cost allowance (CCA)

Under proposed changes, an accelerated CCA rate of 10% under class 1 would apply to new eligible purpose-built rental housing projects that begin construction after April 15, 2024, and before 2031, and are available for use before 2036. Investments eligible for this measure would continue to benefit from the accelerated investment incentive (AII), which currently suspends the half-year rule, providing a CCA deduction at the full rate for eligible property that becomes available for use before 2028.

Immediate expensing (a 100% first-year deduction) would apply to new additions of property to CCA classes 44, 46, and 50, if the property is acquired after April 15, 2024, and becomes available for use before 2027. Property that becomes available for use in 2027 would continue to benefit from the AII.

Avoidance of tax debts

A new supplementary rule was announced to strengthen the existing tax debt anti‑avoidance rule that is intended to prevent taxpayers from avoiding their tax liabilities by transferring their assets to non-arm's length persons for insufficient consideration.

Under the new supplementary rule, where certain conditions are met, the property transferred by the tax debtor would be deemed to have been transferred to the transferee for the purposes of the tax debt avoidance rule. This would ensure that the tax debt avoidance rule applies in situations where property has been transferred from a tax debtor to a person and, as part of the same transaction or series, property has been received by a non‑arm's length person.

In addition, the existing penalty would be extended to tax debt avoidance planning that is subject to the supplementary rule. The penalty is equal to the lesser of:

To further enhance the effectiveness of the tax debt anti‑avoidance rule, it is proposed that taxpayers who participate in tax debt avoidance planning would be jointly and severally, or solidarily, liable for the full amount of the avoided tax debt. This amount would include any portion the planner retained as a fee. These measures would apply to transactions or series of transactions that occur after April 15, 2024.

Canada carbon rebate for small businesses

A new refundable tax credit is available to return a portion of fuel charge proceeds collected under the federal carbon pollution pricing system to eligible Canadian-controlled private corporations (CCPCs). To be eligible for a Canada carbon rebate for a calendar year, a corporation must:

The tax credit amount will be:

The designated provinces are Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Ontario, Manitoba, Saskatchewan, and Alberta.

CCPCs will not have to apply for this tax credit. Once the corporation files a tax return for a tax year ending in 2023, the Canada Revenue Agency (CRA) will determine the corporation's eligibility and, generally, issue the rebate to it.

For calendar years after 2023, the Canada carbon rebate will be determined in a similar way – the CRA will automatically calculate the rebate for eligible CCPCs that filed a tax return on or before July 15 of the next calendar year.

See the details.

Charitable donations

Deadline

The deadline for making donations eligible for tax support in the 2024 tax year is proposed to be extended until February 28, 2025, for tax years ending after November 14, 2024, and before 2025.

Receipts

Effective on registration of the amended Regulation, charities will be allowed to issue donation receipts electronically, if:

Clean technology manufacturing ITC – Polymetallic extraction and processing

Because producing qualifying materials may occur during polymetallic projects (projects that produce multiple metals), under proposed changes, several adjustments would be made to the credit. One of these includes changing to a "primarily" test (with 50% rather than 90%) for property used in qualifying mineral activities expected to produce qualifying materials at mine or well sites.

Electric vehicle supply chain ITC

The Government announced a new 10% electric vehicle (EV) supply chain investment tax credit. It would apply on the cost of buildings used in key segments of the EV supply chain for businesses that invest in Canada across three supply chain segments:

Excessive interest and financing expenses limitation (EIFEL) rules

New EIFEL rules limit the net amount of interest and financing expenses (interest and financing expenses minus interest and financing revenues) that can be deducted by a taxpayer that is not an excluded entity. For tax years starting on or after January 1, 2024, the limit is generally equal to 30% of adjusted taxable income. As a transition measure, a ratio of 40% applies to tax years starting on or after October 1, 2023, and before January 1, 2024. 

Exempt interest and financing expenses on purpose-built residential rentals and regulated energy utility businesses

The definition of “exempt interest and financing expenses” in subsection 18.2(1) provides an exemption from the excessive interest and financing limitation (EIFEL) rules for interest and financing expenses (IFE) incurred in respect of the financing of certain Canadian public-private partnership infrastructure projects.

Under proposed changes, this definition would be amended by adding two elections:

A purpose built residential rental would be a building or part of a building situated in Canada:

Global minimum tax

A new global minimum tax was introduced to ensure that large multinational enterprises (MNEs) are subject to a minimum effective tax rate of at least 15% on their profits in each jurisdiction they operate in. Large MNEs are entreprises with more than €750 million in worldwide revenues on a consolidated group basis.

The new tax applies to fiscal years starting on or after December 31, 2023. Corporations that are subject to this tax must file applicable returns separately from their T2 Corporation Income Tax Return.

Manipulation of bankrupt status

Under proposed changes, the exception to the debt forgiveness rules for bankrupt corporations and the loss restriction rule applicable to bankrupt corporations will be repealed.

As a result, bankrupt corporations would be subject to the general rules that apply to other corporations whose commercial debts are forgiven. This change would apply to bankruptcy proceedings that started after April 15, 2024.

Mutual fund corporation

Under proposed changes, for tax years starting after 2024, a corporation will not qualify as a mutual fund corporation if it is controlled by or for the benefit of a corporate group (including a corporate group that consists of any combination of corporations, individuals, trusts, and partnerships that do not deal with each other at arm's length).

This new rule would not apply to mutual fund corporations incorporated within the two previous years and where specified persons hold shares with a value of $5 million or less. Exceptions would apply to ensure that the measure does not adversely affect mutual fund corporations that are widely held pooled investment vehicles.

Non-compliance with information requests

Under proposed changes, effective on royal assent, the information gathering provisions would be amended by:

Non-compliant short‑term rentals

Effective January 1, 2024, any deduction (including capital cost allowance deduction in Schedule 8) from income in respect of non-compliant short-term rentals is disallowed to the extent of a non‑compliant amount.

Reportable and notifiable transactions penalty

The general penalty provision for failure to file an information return is removed for reportable or notifiable transactions, as there are specific penalty provisions under the mandatory disclosure rules (MDR) that apply. This is deemed to have come into force on June 22, 2023, which is the coming into force date of the specific penalty provisions under the MDR.

Reporting rules for digital platform operators

New reporting requirements have been introduced for the 2024 calendar year for platform operators in select segments of the digital economy under Part XX (which came into force January 1, 2024). Starting in January 2025, reporting platform operators have to file an information return on sellers using their platform to generate revenue in select segments of the platform economy. See the details. 

Synthetic equity arrangement

A corporation can generally deduct the amount of any dividends received on a share of a corporation resident in Canada. However, this is subject to certain limitations. One of these limitations is an anti avoidance rule that denies the dividend received deduction in respect of synthetic equity arrangements (SEA). The anti-avoidance rule does not apply for SEA for which the taxpayer has established that no tax-indifferent investor has all or substantially all of the risk of loss and opportunity for gain or profit in respect of the share.

Under proposed changes, this anti-avoidance rule would be simplified by removing the tax-indifferent investor exception (including the exchange traded exception). Corporations would therefore be unable to claim the deduction for dividends received on a share there is a SEA for, without any exceptions. This would apply to dividends received after December 31, 2024.

Withholding for non-resident service providers

Currently, a person who pays a fee, commission, or other amount to a non-resident for services provided in Canada is required to withhold 15% of the payment and remit it to the CRA. Effective on royal assent, the CRA would be able to waive this withholding requirement over a specific period under certain conditions

2024 – Provinces and territories

British Columbia

[2024-05-21 Order in Council 268/2024]

British Columbia interactive digital media tax credit – Effective September 1, 2024, products that enable gambling with currency will not qualify as interactive digital media products. 

[2024-02-22 Budget]

British Columbia clean buildings tax credit

The retrofit certification deadline is extended by six months from March 31, 2027, to September 30, 2027.

British Columbia film and television tax credit – Animated productions that begin key animation on or after June 1, 2024, are no longer eligible for the regional and distant location regional tax credits.

British Columbia mining exploration tax credit – Effective February 23, 2024, mining exploration expenses related to a bituminous sands deposit or oil shale deposit do not qualify for the mining exploration tax credit.

British Columbia production services tax credit – Animated productions that begin key animation on or after June 1, 2024, are no longer eligible for the regional production services and distant location production services tax credits.

British Columbia shipbuilding and ship repair industry tax credit – The credit, which was set to end December 31, 2024, is extended two years to December 31, 2026.

British Columbia training tax credit – The credit, which was set to end December 31, 2024, is extended three years to December 31, 2027. 

Manitoba

[2024-04-02 Budget]

Manitoba data processing investment tax credits – These credits are eliminated for the 2025 and later tax years.

Manitoba interactive digital media tax credit – Expenses for eligible projects are to be claimed in the tax year in which they were incurred. The requirement that a corporation claim the credit on or before its filing due date for the tax year is eliminated. Some qualified corporations, in certain circumstances, will be exempt from having to apply for a certificate of eligibility (pre-approval) before project work begins.

Manitoba rental housing construction tax credit – Effective for the 2024 tax year, a new refundable tax credit is announced that will provide:

Construction must start on or after January 1, 2024.

Newfoundland and Labrador

[2024-12-27 Regulation 103/24]

Newfoundland and Labrador interactive digital media tax credit – The credit, which was set to end December 31, 2024, has been made permanent. 

[2024-03-21 Budget]

Newfoundland and Labrador – Provincial corporation tax – Effective January 1, 2024, the lower rate of income tax is decreased from 3% to 2.5%.

Nova Scotia

[2024-02-29 Budget]

Nova Scotia digital animation tax credit – The credit, which was set to end December 31, 2025, has been extended five years to December 31, 2030.

Nova Scotia digital media tax credit – The credit, which was set to end December 31, 2025, has been extended five years to December 31, 2030. 

Nova Scotia innovation equity tax credit – The credit, which was set to end February 29, 2024, has been extended five years to March 1, 2029. 

Nova Scotia venture capital tax credit – The credit, which was set to end March 31, 2024, has been extended five years to March 30, 2029.

Ontario

[2024-03-26 Budget]

Ontario computer animation and special effects (OCASE) tax credit – For film or television productions for which no specified labour costs were incurred before March 26, 2024, an eligible production no longer has to qualify for either the Ontario film and television tax credit or the Ontario production services tax credit. Instead, the corporation has to incur a minimum of $25,000 in Ontario labour expenditures for each film or television production for which it is claiming the OCASE credit. This minimum labour expenditure threshold has to be incurred either:

Once a qualifying corporation reaches the minimum labour expenditure threshold within up to two tax years for a specific production, expenditures related to that production in those tax years and any later tax year will be eligible. Certain types of productions are excluded from eligibility, such as instructional, music and gaming videos, and videos consisting mainly of user-generated footage.

Saskatchewan

[Bill 1 – Royal assent 2024-12-10]

Saskatchewan – Provincial corporation tax – The lower tax rate of income tax of 1% has been made permanent.

2023 – Federal

[2023-11-21 Fall Economic Statement]

Canadian journalism labour tax credit

The 2023 Fall Economic Statement proposes to increase the cap on labour expenditures per eligible newsroom employee from $55,000 to $85,000. It also proposes to temporarily increase the tax credit rate from 25% to 35% for a period of four years. As a result, organizations would be able to claim up to $29,750 in eligible labour costs per eligible newsroom employee per year. These changes would apply to qualifying labour expenditures incurred after 2022. The rate would return to 25% for expenditures incurred after 2026. Transitional rules would apply to prorate these changes if an organization's tax year does not follow a calendar year.

Clean electricity investment tax credit

The 2023 Fall Economic Statement proposes to expand eligibility for the credit to include systems that produce electricity or both electricity and heat from waste biomass.

Clean technology investment tax credit

The 2023 Fall Economic Statement proposes to expand eligibility for the credit to include systems that produce electricity, heat, or both electricity and heat from waste biomass. This would be available to businesses investing in eligible property that is acquired and becomes available for use on or after November 21, 2023.

Dividend received deduction by financial institutions

Budget 2023 proposed to deny the dividend received deduction for dividends received after 2023 by financial institutions on shares that are mark-to-market property or tracking property. The 2023 Fall Economic Statement proposes an exception to this measure for dividends received on taxable preferred shares (as defined in the Income Tax Act).

Excessive interest and financing limitation (EIFEL) rules

[2023-08-04 Draft Legislative Proposals]

In general terms, the proposed EIFEL rules limit the amount of net interest and financing expenses that may be deducted in computing a taxpayer's income to no more than a fixed ratio of earnings before interest, taxes, depreciation and amortization. Generally, the proposed EIFEL rules apply directly to taxpayers that are corporations or trusts. They also apply indirectly to partnerships, as interest and financing expenses and revenues of a partnership are attributed to members that are corporations or trusts, in proportion to their interests in the partnership.

The proposed EIFEL rules generally apply to tax years starting on or after October 1, 2023.

[2023-03-28 Budget]

Clean economy investment tax credits

Budget 2023 proposed the creation of new investment tax credits, some previously announced in the Fall Economic Statement 2022, along with modifications to the carbon capture, utilization, and storage investment tax credit (CCUS ITC).

Interactions with other federal tax credits

Businesses will be able to claim only one of the following clean economy ITCs if a particular property is eligible for more than one of the credits:

However, multiple tax credits could be available for the same project, if the project includes different types of eligible property.

Businesses will be able to fully benefit from both the clean economy ITCs (other than the CCUS ITC) and the Atlantic investment tax credit.

Labour requirements related to certain investment tax credits

To achieve the maximum tax credit rates for all ITCs (other than the clean technology manufacturing ITC), businesses will have to meet certain labour requirements – prevailing wage requirements and apprenticeship requirements. Otherwise, the credit rate will be reduced by 10 percentage points.

Exemptions will apply for acquisitions of off-road zero-emission vehicles and acquisitions and installations of low-carbon heat equipment.

Clean electricity ITC

A new 15% refundable tax credit, the clean electricity investment tax credit has been proposed, to support eligible entities that make eligible investments to accelerate the supply and transmission of clean electricity. The credit would be available as of the day of the federal budget 2024, for projects that did not begin construction before March 28, 2023. The credit would not be available after 2034. The Department of Finance will engage with provinces, territories, and other relevant parties to develop the design and implementation details of the credit.

Clean hydrogen ITC

A new refundable tax credit, the clean hydrogen investment tax credit, has been proposed to support investments in clean hydrogen production. The credit is equal to between 15% and 40% of the cost of purchasing and installing eligible property used in the eligible project, depending on the carbon intensity (CI) of the production process. Processes with the lowest carbon intensity [measured as kilograms of carbon dioxide equivalent (CO2eq) per kilogram of hydrogen produced] would earn the highest rate. The credit would not apply when the carbon intensity is 4.0 kg or more. The credit would apply to property that is acquired and that becomes available for use after March 27, 2023. It would be reduced by half for property that becomes available for use in 2034 and would not apply after 2034.

Clean technology ITC

A new refundable clean technology investment tax credit has been introduced. The credit is equal to 30% of the capital cost of eligible clean technology property that is acquired and that becomes available for use after March 27, 2023, and before 2034. The rate will be reduced to 15% in 2034 and nil after 2034. Qualifying equipment includes certain zero-emission power generation technologies (including concentrated solar energy equipment and small modular nuclear reactors), storage equipment for zero-emission energy and non-road zero-emission vehicles. Geothermal energy systems are also generally included, unless they are used for geothermal energy projects that will co-produce oil, gas or other fossil fuels.

Clean technology manufacturing ITC

A refundable investment tax credit for clean technology manufacturing and processing, and critical mineral extraction and processing has been proposed. The clean technology manufacturing investment tax credit would be equal to 30% of the capital cost of eligible property associated with eligible activities. Eligible property would generally include machinery and equipment, including certain industrial vehicles, used in manufacturing, processing, or critical mineral extraction, as well as related control systems. The credit would not be available for property used in the production of battery cells or modules if such production benefits from direct support through a Special Contribution Agreement with the Government of Canada.

The credit would apply to property that is acquired and that becomes available for use after 2023. It would be gradually phased out starting with property that becomes available for use in 2032 as follows: 30% in 2024 to 2031, 20% in 2032, 10% in 2033, and 5% in 2034. The credit would no longer be in effect for property that becomes available for use after 2034.

Note

The labour requirements do not apply to the clean technology manufacturing ITC.

CCUS ITC

New design details were added to the credit regarding:

These measures apply to eligible expenses incurred after 2021 and before 2041.

Note

Businesses will not be able to benefit from both the CCUS ITC and the Atlantic ITC.

Dividend received deduction by financial institution

The dividend received deduction will be denied for dividends received after 2023 by financial institutions on shares that are mark-to-market property or tracking property. It was later announced that, as an exception, this measure will not apply to dividends received on taxable preferred shares (as defined in the Income Tax Act).

Flow-through shares and critical mineral exploration tax credit – Lithium from brines

Eligible expenses related to lithium from brines made on or after March 28, 2023, qualify as Canadian exploration expenses and Canadian development expenses. The eligibility to the critical mineral exploration tax credit is expanded to include this mineral resource.

General anti-avoidance rule (GAAR)

The GAAR rule will be amended by:

Income tax treatment of credit unions

The definition of credit union under the Income Tax Act is modified. Under the previous legislation, a credit union that did not earn all or substantially all (generally 90% or more) of its revenues from sources specified in the definition could have been excluded from the definition. This condition is removed effective January 1, 2016.

Part II.2 tax on repurchases of equity

For transactions that occur after 2023, a corporate-level 2% tax has been introduced that will apply on the net value of all types of share repurchases by:

The tax will not apply to an entity described above in a tax year if the total fair market value of equity that is redeemed, acquired, or cancelled in that tax year (prorated for short tax years) is less than $1 million. The tax will apply for repurchases and issuances of equity that occur after 2023.

Rate reduction for zero-emission technology manufacturers

The rate reduction for zero-emission technology manufacturers has been extended by three years. The reduced rates will be 4.5% until 2031, 5.625% in 2032, 6.75% in 2033, and 7.875% in 2034 for income eligible for the small business deduction. For other eligible income, the reduced rates will be 7.5% until 2031, 9.375% in 2032, 11.25% in 2033, and 13.125% in 2034. These new measures will be fully phased out for tax years starting after 2034.

For tax years starting after 2023, eligible activities that qualify for the reduced tax rates will be expanded to include the following nuclear manufacturing and processing activities: 

Underused housing tax (UHT)

[2023-03-27 News release]

Although the deadline for filing the UHT return and paying the UHT payable is still April 30, 2023, no penalties or interest will be applied for UHT returns and payments that the CRA receives before November 1, 2023.

Zero-emission passenger vehicles

[2022-12-16 News release]

For zero-emission passenger vehicles (new and used) acquired on or after January 1, 2023, the prescribed amount is increased from $59,000 to $61,000, before sales tax. The previous increase was from $55,000 to $59,000, effective January 1, 2022.

Mandatory disclosure rules

[2022-11-03 News release]

In order to fully assess the feedback received as part of the public consultation on mandatory disclosure rules launched August 9, 2022, the government intends to delay the coming into force date of the reporting requirements for reportable transactions and notifiable transactions until the date on which a bill implementing these changes receives royal assent. The coming into force date for uncertain tax treatments would remain the same as described in August (that is, tax years beginning after 2022, with penalties only applying after royal assent). For more information, see Mandatory disclosure rules – Overview.

Note

Enabling Bill C-47 received royal assent on June 22, 2023.

2023 – Provinces and territories

Atlantic provinces – Carbon taxation

New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island are subject to the federal carbon backstop for carbon taxation since July 1, 2023.

British Columbia

[2023-02-28 Budget]

British Columbia farmers' food donation tax credit – This credit, which was set to end December 31, 2023, has been extended three years to December 31, 2026.

British Columbia interactive digital media tax credit – This credit, which was set to end August 31, 2023, has been extended five years to August 31, 2028.

Manitoba

[2023-03-07 Budget]

Manitoba green energy equipment tax credit – This credit, which was set to end June 30, 2023, is now permanent.

Manitoba interactive digital media tax credit – Effective April 1, 2023, the eligible expenditures are expanded to allow for more flexible forms of employee compensation and incentives as eligible labour expenditures for this credit. This does not include labour expenditures such as bonuses tied to profits or revenues, stock options or signing bonuses, which are still not eligible. 

New Brunswick

[2023-03-21 Budget]

New Brunswick – Carbon taxation – The province has opted to adopt the federal carbon backstop for carbon taxation effective July 1, 2023. Previously, the province had applied its own approach to carbon taxation.

Newfoundland and Labrador

[2023-04-20 Regulation 31/23]

Newfoundland and Labrador all-spend film and video production tax credit – Effective April 7, 2022, a new all-spend film and video production tax credit has been introduced. The 40% tax credit applies to total eligible production costs, with a maximum credit of $10 million for an eligible production in a tax year.

Nova Scotia

[2023-02-22 Regulation 44/2023]

Nova Scotia capital investment tax credit – Effective October 1, 2022, the maximum aggregate amount of tax credits that can be claimed by a corporation for an approved project is increased from $30 million to $100 million.

Ontario

[2023-03-23 Budget]

Ontario film and television tax credit – Productions supported by Ontario tax credits must now provide on-screen acknowledgement of this support in their end credits. The eligibility for the credit was extended to professional film and television productions that are distributed exclusively online if eligibility requirements are met.

Ontario made manufacturing investment tax credit – A new 10% refundable corporation income tax credit has been introduced for qualifying investments of up to $20 million a tax year made by eligible corporations, for a maximum credit of $2 million a year. This applies to investments made after March 22, 2023, or before for buildings meeting specific criteria. Qualifying investments are expenditures for certain capital property included in capital cost allowance class 1 or 53. Eligible corporations are Canadian-controlled private corporations that have a permanent establishment in Ontario. 

Ontario production services tax credit – Productions supported by Ontario tax credits must now provide on-screen acknowledgement of this support in their end credits. The eligibility for the credit was extended to professional film and television productions that are distributed exclusively online if eligibility requirements are met. Effective November 15, 2022, expenditures for leasing real property in Ontario for on-location filming no longer must meet the "ordinarily engaged in" requirement for eligible tangible property expenditures. Expenditures must be reasonable in the circumstances and paid to an arm's length party. The maximum eligible expenditures for leasing real property for on-location filming is 5% of the production's qualifying production expenditures, net of these location costs.

Ontario small business deduction – Ontario paralleled the federal change in the small business deduction phase-out, first announced in the 2022 federal budget. The deduction will not be reduced to nil until a Canadian-controlled private corporation and its associated corporations have a combined taxable capital of $50 million. This change is effective for tax years starting after April 6, 2022. 

Yukon

[Yukon Carbon Price Rebate Amendments Act (2022) – Royal assent 2022-10-24]

Yukon carbon rebate – Starting in 2023, the Yukon business carbon price rebate also includes the mining business carbon price rebate.

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