Our government is committed to supporting an economy that allows small businesses and innovation to thrive. This year’s Federal Budget highlights how we are turning this goal into reality by:

1. Increasing Research Funding: We will be investing $1.8 billion over five years for core research grants and 3.5 billion in new strategic research infrastructure and federal research aid. This investment will focus on upgrading research facilities to ensure they meet modern standards and support breakthroughs in Canadian research and science. Furthermore, $2.4 billion will be allocated for core research grants and to nurture local research talent. This will involve simplifying and improving scholarships and fellowships through Canada’s research grant councils. By bolstering research support, we aim to equip industries and businesses with the necessary talent to boost productivity and maintain competitiveness.
2. Supporting Small Businesses: The New Canada Carbon Rebate for Small Businesses will return over $2.5 billion through a refundable tax credit, benefiting 600,000 small businesses. $60 million will be invested in Futurpreneur Canada to support young entrepreneurs, creating around 6,250 new businesses by 2029. The Lifetime Capital Gains Exemption will increase to $1.25 million, benefiting those with gains below $2.25 million. A new Canadian Entrepreneurs’ Incentive will provide a combined exemption of $3.25 million on eligible capital gains. Additionally, $200 million will be invested in Canadian start-ups over two years, and government procurement targets will be proposed for small- and medium-sized businesses. Finally, $350 million over five years will support Indigenous-owned businesses, including funding for the Métis Capital Corporations.
3. Investments in AI innovation: With an unprecedented investment exceeding $2.4 billion in targeted AI assistance, we will inaugurate a new AI Compute Access Fund alongside a Canadian Sovereign Compute Strategy. This substantial funding initiative is designed to facilitate AI integration throughout our entire economic landscape. It will empower Canadian researchers, startups, and scaling enterprises by providing essential computational resources and digital utilities necessary for developing a competitive edge. Moreover, it will serve as a catalyst for fostering the growth of domestically owned and situated AI infrastructure within Canada.

To ensure prosperity for all Canadians, our government is prioritizing economic growth through enhanced productivity and innovation. Our plan involves investing in essential technologies, offering incentives, and supporting businesses to create more high-quality jobs for Canadians nationwide.