Department of Finance Canada released the 2026 Report on Federal Tax Expenditures, the annual publication that estimates the fiscal cost of federal tax measures.
Tax expenditures include preferential rates, exemptions, deductions, deferrals, and tax credits. The report is meant to show how those measures affect federal revenue and how they support policy objectives outside direct program spending.
The 2026 report reflects measures announced in Budget 2025, including accelerated depreciation for manufacturing or processing buildings and low-carbon liquefied natural gas facilities.
It also reflects measures first announced in the 2024 Fall Economic Statement, including the enhancement of the Scientific Research and Experimental Development investment tax credit and the extension of the Accelerated Investment Incentive and immediate expensing measures.
Finance Canada said the report also covers household-support measures, including the First-Time Home Buyers? GST Rebate and the Top-Up Tax Credit.
The report matters as a public-finance document because many tax measures operate like spending programs inside the tax system. Publishing their estimated cost gives readers a clearer view of the revenue choices behind credits, deductions, and preferential treatment.