On April 28, 2026, the federal Minister of Finance, François-Philippe Champagne, tabled the Spring 2026 Economic Update.
Below is a summary of the relevant tax measures proposed by the federal government in its Spring 2026 Economic Update.
Personal Income Tax Measures
Disability Tax Credit
The Disability Tax Credit (DTC) is a non-refundable tax credit intended to recognize the impact of non-itemizable disability-related costs on the ability to pay tax. For 2026, the amount of the credit is $10,341, which provides a federal tax reduction of up to $1,448.
Certain Long-lasting Medical Conditions
The CRA's experience in processing DTC applications has allowed for the identification of several long-lasting medical conditions that satisfy the disability impact criteria of the DTC. These medical conditions are laid out in Table 1.
The Spring Economic Update 2026 proposes to streamline the DTC certification requirements related to these long-lasting medical conditions.
Under this proposal, for individuals who have at least one of the listed medical conditions, a qualified medical practitioner would need to certify that the individual has the medical condition. The practitioner would no longer be required to certify that the individual's impairment is severe and prolonged and that its effects meet the legislated thresholds regarding daily living impacts.
Table 1
Long-lasting medical conditions eligible for streamlined application, as proposed
- Alzheimer's disease
- Amyotrophic lateral sclerosis / Lou Gehrig disease
- Angelman syndrome
- Autism spectrum disorder, level 3
- Bilateral blindness (legally blind)
- Bilateral hearing loss (severe or profound)
- Cardiac functional class of 4/IV or an ejection fraction of 20% or less
- Cerebral palsy (severe)
- Chronic Obstructive Pulmonary Disease, stage III or higher
- Colostomy (permanent)
- Cystic fibrosis
- Dementia
- Down syndrome / Trisomy 21
- Duchenne muscular dystrophy (advanced or severe)
- Edwards syndrome / Trisomy 18
- Hemipelvectomy
- Hemophilia A (severe)
- Hip disarticulation
- Huntington disease
- Ileostomy (permanent)
- Intellectual disability (severe, profound or IQ of 70 or below)
- Lower limb amputation (leg or foot)
- Microcephaly
- Paraplegia
- Parkinson's disease (advanced or severe)
- Patau syndrome / Trisomy 13
- Phenylketonuria
- Prader Willi syndrome
- Profound hearing loss in one ear and severe hearing loss in the other ear
- Progeria
- Quadriplegia or tetraplegia
- Relies only on lip-reading and / or use sign language to understand conversations or communicate
- Renal (kidney) failure requiring lifelong hemodialysis or peritoneal dialysis
- Requires lifelong continuous supplemental oxygen (O2)
- Schizophrenia
- Sickle cell disease (severe) requiring transfusions
- Sign language is primary means of communicating due to profound hearing loss or expressive aphasia
- Spinal muscular atrophy, type 1 and 2
- Stroke (severe) no functional recovery
- Tay-Sachs disease (infantile/juvenile)
- Total mutism
- Traumatic brain injury (severe)
- Upper limb amputations (trans carpal or higher)
Medical Practitioners Qualified to Certify Impairments
The Spring Economic Update 2026 proposes to expand the types of impairments that may be certified by certain qualified medical practitioners, for the purposes of the DTC, as follows:
- An occupational therapist would be permitted to certify impairments affecting eliminating (bowel or bladder functions), including under cumulative effects of multiple restrictions.
- A physiotherapist would be permitted to certify impairments affecting feeding or dressing, as well as cumulative effects of multiple restrictions pertaining to walking, feeding and/or dressing.
- A speech-language pathologist would be permitted to certify impairments affecting feeding or hearing, as well as cumulative effects of multiple restrictions pertaining to speaking, feeding and/or hearing.
The Spring Economic Update 2026 also proposes to add podiatrists to the list of medical practitioners who may certify impairments for the DTC. An individual who holds a license to practice as a podiatrist in a province (or under the laws of a jurisdiction in which an individual resides) would be permitted to certify impairments affecting walking that are within their scope of practice to assess.
These measures would apply to DTC certifications issued after 2026 for the 2027 and subsequent taxation years.
Employee Ownership Trust Tax Exemption
Individuals (other than trusts) are provided an exemption from taxation on up to $10 million in capital gains realized on the sale of a business to an employee ownership trust or worker cooperative corporation, subject to certain conditions.
The exemption was introduced as a temporary measure. It currently applies to qualifying dispositions of shares that occur after 2023 and up to the end of 2026.
The Spring Economic Update 2026 proposes to make this exemption permanent.
The exemption was introduced as a temporary measure. It currently applies to qualifying dispositions of shares that occur after 2023 and up to the end of 2026.
The Spring Economic Update 2026 proposes to make this exemption permanent.
Home Buyers' Plan
The home buyers' plan (HBP) helps eligible home buyers save for a down payment by allowing them to withdraw up to $60,000 from a registered retirement savings plan (RRSP) to purchase or build their first home, or a home for a specified disabled person, without having to pay tax on the withdrawal. Eligible home buyers purchasing a home jointly may each withdraw up to $60,000 from their own RRSP under the HBP.
Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years, starting the second year following the year in which a first withdrawal was made. Otherwise, amounts due for repayment within a specific year are taxable as income for that year.
Budget 2024 temporarily increased the grace period during which homeowners are not required to start repaying their HBP withdrawals from two years to five years for participants making a first withdrawal between January 1, 2022 and December 31, 2025.
The Spring Economic Update 2026 proposes to extend that five-year grace period to be available for participants making a first withdrawal up to the end of 2028. In such a case, the 15-year repayment period would start the fifth year following the year in which a first withdrawal was made.
Amounts withdrawn under the HBP must be repaid to an RRSP over a period not exceeding 15 years, starting the second year following the year in which a first withdrawal was made. Otherwise, amounts due for repayment within a specific year are taxable as income for that year.
Budget 2024 temporarily increased the grace period during which homeowners are not required to start repaying their HBP withdrawals from two years to five years for participants making a first withdrawal between January 1, 2022 and December 31, 2025.
The Spring Economic Update 2026 proposes to extend that five-year grace period to be available for participants making a first withdrawal up to the end of 2028. In such a case, the 15-year repayment period would start the fifth year following the year in which a first withdrawal was made.
Labour Mobility Deduction for Tradespeople
The Labour Mobility Deduction for Tradespeople allows eligible tradespeople and apprentices working in the construction industry who undertake an eligible temporary relocation to deduct up to $4,000 in eligible temporary relocation expenses per year. The maximum amount of eligible expenses that can be claimed for a particular eligible temporary relocation is limited to 50% of the individual's employment income in respect of the relocation.
To qualify, the relocation must be temporary in nature and undertaken by the eligible tradesperson to enable them to perform their duties of employment as an eligible tradesperson at one or more temporary work locations. The eligible tradesperson must also take up temporary lodging in Canada that is at least 150 kilometres closer to each temporary work location than the taxpayer's ordinary residence.
The Spring Economic Update 2026 proposes to increase the limit on eligible temporary relocation expenses that can be deducted in a year from $4,000 to $10,000 in 2026, with annual indexation thereafter, and to modify the distance rule such that the temporary lodging must be at least 120 kilometres closer to each temporary work location than the taxpayer's ordinary residence.
This measure would apply to the 2026 and subsequent taxation years.
To qualify, the relocation must be temporary in nature and undertaken by the eligible tradesperson to enable them to perform their duties of employment as an eligible tradesperson at one or more temporary work locations. The eligible tradesperson must also take up temporary lodging in Canada that is at least 150 kilometres closer to each temporary work location than the taxpayer's ordinary residence.
The Spring Economic Update 2026 proposes to increase the limit on eligible temporary relocation expenses that can be deducted in a year from $4,000 to $10,000 in 2026, with annual indexation thereafter, and to modify the distance rule such that the temporary lodging must be at least 120 kilometres closer to each temporary work location than the taxpayer's ordinary residence.
This measure would apply to the 2026 and subsequent taxation years.
Business Income Tax Measures
Accelerated Capital Cost Allowance Rates for Low-Carbon Liquefied Natural Gas Facilities
Budget 2025 proposed to reinstate accelerated capital cost allowances (CCAs) for eligible liquefied natural gas (LNG) equipment and related buildings for low-carbon LNG facilities. The Spring Economic Update 2026 proposes the implementation details for this measure.
Investment Tax Credit for Carbon Capture, Utilization, and Storage
The Carbon Capture, Utilization, and Storage (CCUS) investment tax credit is a refundable tax credit that provides support for eligible expenditures relating to CCUS.
The Spring Economic Update 2026 proposes that Enhanced Oil Recovery (EOR) be made an eligible use for the purposes of the CCUS tax credit. Existing CCUS tax credit design features would apply, along with certain specific design details.
This measure would apply as of April 28, 2026.
The Spring Economic Update 2026 proposes that Enhanced Oil Recovery (EOR) be made an eligible use for the purposes of the CCUS tax credit. Existing CCUS tax credit design features would apply, along with certain specific design details.
This measure would apply as of April 28, 2026.