Budget 2025 – Key Highlights for Canadian Corporations and Individuals

November 2025

1. Business & Corporate Tax Measures

   • 100% immediate expensing for new or improved M&P buildings used ≥90% in production (usable before 2030; phase-out 2030–2033).

   • Accelerated write-offs for M&P equipment confirmed; Class 53 AII phase-out continues (100% → 75% → 55%).

   • Ontario OMMITC: 15% rate and extended to non-CCPCs (May 15, 2025 – Dec 31, 2029).

   • Quebec CRIC: 20–30% refundable credit for R&D and innovation (tax years after Mar 25, 2025).

   • Alberta APITC: 12% non-refundable credit for agri-processing projects ≥$10M.

   • Manitoba MITC: 8% M&P investment credit (7% refundable + 1% non-refundable); R&D credit 15%.

     
     

2. Innovation & R&D

   • Federal SR&ED: 35% refundable for CCPCs (≤$3M), 15% non-refundable otherwise; modernization confirmed.

   • Quebec CRIC complements SR&ED for in-province R&D and pilot projects.

     
     

3. Individuals, Non-Residents & Trusts

   • Underused Housing Tax (UHT) eliminated from 2025 onward for non-resident owners.

   • Personal Support Worker Tax Credit: 5% refundable up to $1,100 (2026–2030).

   • Registered Plan Reforms: harmonized RRSP, TFSA, RESP, and RDSP rules starting 2027.

   • Trusts: anti-avoidance rules strengthened for trust-to-trust transfers.

     
     

4. Tax Rates & Outlook

   • Combined corporate tax rates remain stable: ON/QC ≈ 26.5%, AB ≈ 23%, MB ≈ 27%.

   • Stable environment supports capital investment and R&D planning.

     
     

5. Action Points

   • Review capex timing for accelerated CCA and new building expensing windows.

   • Quantify OMMITC, CRIC, and APITC eligibility by province.

   • Coordinate SR&ED and CRIC claims to optimize refunds.

   • Update tax provision models for phase-outs and credit timing.

   • Assess personal and trust-level impacts (UHT, PSW credit, registered plan reforms).