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Fall Economic Statement

The innovation package combines SR&ED threshold changes, pension-fund rules, a $1 billion venture-capital round, and AI data-centre financing.

Department of Finance Canada said the 2024 Fall Economic Statement included innovation, pension-investment, and business-financing measures.

The SR&ED proposal would increase the annual expenditure limit for the enhanced 35 per cent investment tax credit from $3 million to $4.5 million.

The proposal would also increase the taxable-capital phase-out thresholds for the enhanced credit from $10 million and $50 million to $15 million and $75 million.

The statement also proposed removing the 30 per cent rule that restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.

Proposed investments under the pension-fund measures would equal 25 per cent of net new private investments.

The statement also proposed a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding and up to $45 billion in aggregate loan and equity investments for AI data-centre projects involving Canadian pension funds.

For project sponsors, public financing and investment tax credits can affect whether major industrial, clean-energy, or resource projects are economic enough to proceed.

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Personal benefits tax credits pensions public finance infrastructure labour market legislation Finance Canada tax

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