On November 4, 2025, Finance Minister François-Philippe Champagne tabled the federal government’s fall economic statement and spending plan, widely known as “Carney’s first budget” because of the heavy influence of Prime Minister Mark Carney.
After weeks of negotiations, the minority Liberal government secured the support needed to pass the budget on (November 17, 2025) with the backing of the Green Party (and the abstention of most NDP and Bloc MPs). In exchange for Green votes, the final package kept and even expanded several clean-energy and carbon-capture incentives, a political win for the government and a practical win for certain business owners.
At Online Accountant, politics only matter to us when they change your tax bill. So we’ve cut through the headlines and the jargon to show you exactly what passed, what it costs, and, most importantly, whether it puts money in your pocket or not.
The government’s original tabling on November 4 was aggressive on manufacturing and clean-tech incentives but light on broad tax relief. To get the budget through a minority Parliament, the Liberals made last-minute concessions that preserved and strengthened the green-focused measures (Carbon Capture ITC extensions to 2035, broader critical-mineral eligibility, Clean Electricity ITC fixes, etc.).
The result? A budget that is laser-focused on capital-intensive, manufacturing, and clean-economy businesses, and relatively quiet for everyone else.
This is the most pro-investment, pro-manufacturing budget we’ve seen in years. If you were hoping for a broad cut to corporate tax rates, this budget doesn’t deliver one. Instead, the government has chosen a targeted approach, pouring fuel on specific areas of the economy through a powerful package of tax incentives called the “Productivity Super-Deduction.”
This is the core of the budget’s business strategy. Rather than lowering the tax rate for everyone, it allows businesses to write off investments much faster, which significantly reduces their taxable income in the short term and boosts cash flow for reinvestment.
If you’re a service-based business, consultant, retailer, restaurant, or professional corporation that isn’t planning a big capital purchase, the budget is nice to manufacturers, but it’s pretty quiet for you. No rate cuts, no increase to the $500,000 small-business limit, no broad relief on EI premiums or carbon tax.
The government bundled a bunch of accelerated write-offs and called it the “productivity super-deduction.” It’s a whole package designed to let you write off capital investments way faster.
Here’s what’s actually new or reinstated:
100% immediate expensing is back or expanded for:
Reinstated Accelerated Rates: Faster write-offs are back for equipment and buildings used in low-carbon liquefied natural gas (LNG) facilities.
100% first-year write-off for new (or qualifying used) manufacturing or processing buildings where at least 90% of the floor space is used for making or processing goods for sale or lease.
→ Acquired after Nov 4, 2025, and available for use before 2030 = 100% write-off in year one.
→ 2030–2031 = 75%, 2032–2033 = 50%, then back to normal rules.
The Bottom Line for Small Business:
This is a major opportunity. If you’ve been considering upgrading your equipment, moving to a larger production space, or investing in tech to become more efficient, doing so now could lead to substantial tax savings. It effectively lowers the after-tax cost of investing in your own growth.
The Scientific Research and Experimental Development (SR&ED) program, a favourite for innovative Canadian companies, gets a significant boost. If you develop software, improve processes, create new formulations, and test materials, there are going to be considerable changes now.
Changes effective now or very soon:
The Bottom Line for Small Business:
If your business is in tech or any R&D-driven field, it’s now easier and more lucrative to claim these credits. The increased limit means more of your research spending can be supported, improving your cash flow for further innovation.
The budget doubles down on Canada’s clean tech ambitions by confirming and expanding several Investment Tax Credits (ITCs), including those for:
If you’re in solar installers, EV fleet operators, battery recyclers, or critical mineral processors, call us. These credits stack with the immediate expense.
The funding of these incentives requires the budget to close some perceived loopholes that essentially impact larger organizations and complicated constructions. These might not affect the typical mom-and-pop store, but one should work within the changing environment.
Business Type | Budget 2025 Impact Level | Why & Estimated Savings Example |
Manufacturing / Food & beverage production | ★★★★★ Game-changing | $2M building → potentially $500k–$650k tax saved in year 1 |
Clean tech / Renewable energy / EV fleet | ★★★★ Strong | 30% ITC + 100% expensing = effective 60–70% subsidy |
Software / Engineering / Product R&D | ★★★★ Strong | Bigger refundable SR&ED + capital back in = more cash |
Construction / Trades / Fleets | ★★★ Good | Electric vans, tools, solar = 100% write-off + ITCs |
Professional services / Law, accounting, consulting | ★★ Modest | Only computers/servers qualify for immediate expensing |
Retail / Restaurants / E-commerce | ★ Limited | Mostly just computers & zero-emission delivery vans |
Real estate holding companies | ★ Positive (UHT gone) | No more UHT filings or tax on vacant residential |
Carney’s first budget only works for businesses that invest in bricks, machines, or innovation, and the biggest incentives are front-loaded and time-limited.
Do this now:
Want us to run exact scenarios for your business (including how much you’ll actually save with the super-deduction and stacking ITCs)?
Drop us an email at info@online-accountant.ca or book a free 15-minute consultation here: https://online-accountant.ca/contact/
The politics are over. The tax savings are just getting started, but only if you act before the best incentives start phasing out.
ALL RIGHTS RESERVED ONLINE ACCOUNTANT LLP 2025 | SITE BY 
