Budget 2026 checklist for accountants: effective dates and client conversations

Advisory. This page covers a budget tabled on November 5, 2026. Most measures are still proposals, and their downstream effects on provincial rules, program terms and intake are not yet known. This page was independently fact-checked against official documents, in a review separate from the drafting, and revised before publishing. Expect further revisions as legislation and official guidance arrive.

This list pulls the measures from the Budget 2026 tax annex that a small business file is most likely to touch. For grants and loans, see our Federal Budget 2026 overview. These are proposals until enacted, and the annex says some details will follow.

Effective dates at a glance

Client conversations to have now

Equipment purchases. Ask which assets were acquired on or after September 15, 2026, and when each becomes available for use. Finance’s exclusions include buildings in classes 1 and 3, classes 14, 14.1 and 51, and certain vehicles in classes 10 and 10.1. Check used-asset history and the loss limits for individuals and partnerships. Our Mega Deduction guide has the detail.

Grants before capital. Subsection 13(7.1) generally reduces capital cost by government assistance, so a grant changes the write-off. Many grant programs also need an application before costs are incurred. If a client is about to buy, the funding question comes first.

SR&ED claimants. The budget would add tests, technological validations and studies needed for initial regulatory approval or certification, and costs to register and maintain IP developed in an SR&ED project. Those activities must relate directly to a project eligible under existing rules. Eligible IP is limited to patents, certificates of supplementary protection, plant breeders’ rights and copyrighted software. Support work must happen in Canada, though foreign office fees are eligible. Enforcement and litigation costs are out. Recapture would apply if the IP is sold. The enhanced rate stays at 35% for certain small and medium-sized corporations. Watch for the CRA’s sector guidance. In Quebec, the CRIC has its own rules.

Owners planning a raise. The Canada Growth Incentive would apply only to new shares issued on or after November 5, 2026, so existing founder shares do not qualify. Shares must be issued to, and owned directly by, a Canadian-resident individual aged 18 or over, or through a partnership, so a holding company does not fit. It would exempt up to $15 million per individual per business on qualifying shares of a CCPC. Assets of the corporation and related corporations must not exceed $100 million immediately before and after issuance, and shares must be held for at least 36 months. Shares must be issued for cash or employment services. Excluded businesses include consulting, professional practices of accountants and lawyers, and businesses in agriculture, forestry, mining, finance, real estate, and food and accommodation, among others. A claim limits the Lifetime Capital Gains Exemption on the same corporation’s shares. Integrity rules are still to come.

Clients exposed to tariffs. The open programs have rules on eligible costs and timing. Point them to our manufacturers’ guide.

Compliance changes to note

• Instalments. Thresholds would rise from $3,000 to $7,500 for corporations and individuals outside Quebec, and from $1,800 to $4,500 for individuals resident in Quebec, indexed. Individuals whose primary income is from a business could make a single annual instalment of two-thirds of net tax owing by December 31, with the rest due on the balance-due date.
• T1 dates. A single May 15 filing and balance-due date would replace April 30 and June 15.
• Objections. Most taxpayers would have one year after the notice of assessment is sent, for assessments sent on or after three months after royal assent. Individuals and graduated rate estates would have the later of that date and two years from the filing due date.
• Tax debt reporting. The CRA could disclose tax debts above $50,000 to credit bureaus, after 30 days’ written notice, reasonable collection steps, and only once objection and appeal rights have expired or been exhausted. GST/HST debts are included.
• Penalties. Most fixed-dollar penalties would rise for inflation, some calibrated by taxpayer size, with new penalties for repeated failures. The Income Tax Act changes would apply to taxation years or fiscal periods ending after 2027.
• Form T1135. The filing threshold would move from $100,000 to $200,000.

Consultations

Written comments on corporate loss transfers and the preferred share regime are due by January 8, 2027.

When a client asks about grants

Budget 2026 is a good reason to review a client’s next 12 months. If a client is planning equipment, training, R&D or export work, our free assessment can check what is open. We do not give tax advice, and an assessment does not guarantee funding.

Canadian Funding Partners is an independent advisory firm, not affiliated with the Government of Canada, and does not administer these programs. This page is general information, not tax or legal advice. Confirm current terms on the official pages.