Tax incentives for companies hiked to attract investments, but economists say budget not ‘transformational’ enough for businesses

Budget 2025 has reinstated the program that allows businesses to write-off their capital assets in the first year of purchase, saving them on corporate taxes that year.

Finance Minister François-Philippe Champagne, pictured with a copy of the 2025 budget before he heads into the House of Commons on Nov. 4, 2025. 'This is a message to all businesses across the country, Canada will be the most competitive country, and we are making sure that we empower you to do that,' Champagne said at his presser.The Hill Times photograph by Andrew Meade

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BY RIDDHI KACHHELA

November 4, 2025

The federal government is offering higher tax incentives for companies to incur scientific R&D expenses and invest in machinery, but the budget measures don’t go far enough to boost investment, say the Business Council of Canada and some economists.

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