Recents changes – Investments

• The increase in the capital gains inclusion rate from one half to two-thirds which had been slated for June 25, 2024 has been cancelled and the 50% inclusion rate has been maintained.
• The Canadian Entrepreneurs’ Incentive, which would have reduced the inclusion rate for capital gains realized on the sale of qualified shares up to an applicable eligible limit (which would have reached $2M in 2029) was cancelled. As a result, this measure, which was slated to be gradually phased in as 2025, will not be introduced.

FEDERAL

• The eligibility period for the Mineral Exploration Tax Credit has been extended for flow-through share agreements concluded prior to April 1, 2027.

QUEBEC

• On March 1, 2025, the rate under the Tax Credits for the Acquisition of Capital Régional et Coopératif Desjardins Shares was reduced from 30% to 25% and a lifetime subscription limit of $45,000 per shareholder was also introduced on March 26, 2025.
• The additional deduction of exploration expenses and the capital gains exemption relating to flow-through shares was eliminated on March 26, 2025.
• As of March 26, 2025, the deduction in respect of the Cooperative Investment Plan (CIP) is reduced from 125% to 100% of the acquisition cost of qualified securities.