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On November 4, 2025, Canada's Minister of Finance and National Revenue, François-Philippe Champagne, tabled the Liberal Government's federal budget, Building Canada Strong, in the House of Commons (Budget 2025). Among other things, Budget 2025 proposes to:
- enact a suite of enhanced tax incentives, referred to as the "productivity super-deduction", to promote investment and innovation in Canada, such as the immediate expensing of manufacturing or processing machinery and equipment, clean energy generation and energy conservation equipment, and zero-emission vehicles, and the reinstatement of the accelerated capital cost allowance rates for liquefied natural gas equipment and related non-residential buildings;
- expand the eligibility of the Critical Mineral Exploration Tax Credit to cover bismuth, cesium, chromium, fluorspar, germanium, indium, manganese, molybdenum, niobium, tantalum, tin, and tungsten;
- expand the list of critical minerals eligible for the Clean Technology Manufacturing Investment Tax Credit to include antimony, indium, gallium, germanium, and scandium;
- extend the availability of full credit rates under the Investment Tax Credit for Carbon Capture, Utilization and Storage by five years, such that they apply to eligible expenditures incurred until December 31, 2035 with reduced rates applying to eligible expenditures incurred between January 1, 2036 and December 31, 2040;
- broaden the Clean Electricity Investment Tax Credit to include the Canada Growth Fund as a qualifying entity for the credit and to specify that financing provided by the Canada Growth Fund will not reduce the capital cost of clean electricity property for the purposes of computing the credit; and
- codify the long held CRA administrative position that expenses related to determining the economic viability or engineering feasibility of a mineral resource are not considered Canadian exploration expenses.
Budget 2025 further confirms the Government's commitment to follow through on outstanding proposals to expand eligibility for the Clean Technology Investment Tax Credit, the Clean Technology Manufacturing Investment Tax Credit, and the Clean Hydrogen Investment Tax Credit.
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