Two major announcements from Ottawa this week will directly impact Canadian-Controlled Private Corporations (CCPCs) heading into 2026. From new procurement rules to tax relief on investments, here is what you need to know.
- The "Buy Canadian" Pivot
On November 10, the federal government announced a significant $186 million investment to operationalize its new "Buy Canadian" Policy. Unlike previous "best efforts" initiatives, this policy mandates that federal departments prioritize Canadian-made goods and services for procurement contracts.
What this means for you: If you are a supplier, contractor, or service provider, the government is about to become a much more accessible client. A new Small Business Procurement Program is being launched specifically to help SMEs navigate the bidding process.
- Capital Gains Hike: Cancelled
In a significant win for business owners holding investments inside their corporations, the proposed increase to the Capital Gains Inclusion Rate (from 50% to 66.7%), which was scheduled to take effect January 1, 2026, has been cancelled.
The Bottom Line:
Corporate investment gains will remain taxable at the 50% rate.
Succession Planning:
The Lifetime Capital Gains Exemption (LCGE) remains locked at $1.25 million and will now be indexed to inflation starting in 2026, protecting the value of your business upon sale.
Contact JFS Bookkeeping Services to ensure your corporate structure is ready for the new year.
