Plain meaning
A proposed federal tax measure intended to reduce the tax rate on eligible capital gains from qualifying entrepreneurial shares.
Also called
Canadian Entrepreneurs Incentive
CEI
Key points
- The measure was announced as part of federal budget and capital-gains policy changes.
- Eligibility depends on the final legislation, the type of shares, the business, holding periods, and other conditions.
- The incentive is separate from the lifetime capital gains exemption, although both can appear in business-sale planning.
- Draft or proposed rules should be checked against final enacted law before being applied.
Why it comes up
Capital-gains and small-business articles often mention the incentive when discussing owner-manager taxation and business succession.