On 18 June 2026, amended federal Bill C-30, Spring Economic Update 2026 Implementation Act (Bill C-30), received Royal Assent. Bill C-30 enacts measures announced in the federal 2026 spring economic update tabled on 28 April 2026, as well as certain previously announced income tax, excise tax and excise duty measures. (For additional information, see EY Global Tax Alert, Canadian government tables Federal Spring Economic Update 2026, dated 30 April 2026.)

Income and payroll tax measures

Bill C-30 includes the following income and payroll tax measures:

• A special capital cost allowance deduction for eligible greenhouses acquired after 3 November 2025 and that become available for use before 2034
• An amendment to exclude from the definition of a "zero-emission vehicle" any vehicle for which the federal government has paid a rebate under the electric vehicle affordability program, effective 16 February 2026
• Amendments to make permanent the CA$10m capital gains exemption for qualifying business transfers to an employee ownership trust and for qualifying cooperative conversions (see also EY Global Tax Alert, Canada | Employee ownership trusts are here to stay, dated 7 May 2026)
• Amendments to the existing labor mobility deduction for tradespeople, effective for 2026 and subsequent tax years
• Extension of the temporary five-year grace period (before the 15-year Home Buyers' Plan (HBP) repayment period begins) to individuals who make their first HBP withdrawals from their Registered Retirement Savings Plan (RRSP) before the end of 2028
• A reduction in the base Canada Pension Plan contribution rate, effective 1 January 2027

Excise tax and excise duty measures

Bill C-30, as amended by the House of Commons Standing Committee on Finance, includes the following excise tax and excise duty measures:

• Suspension of the federal excise tax on gasoline, unleaded aviation gasoline, leaded aviation gasoline, diesel fuel and aviation fuel from 20 April to 7 September 2026 (a government amendment to Bill C-30, adopted by the House of Commons Standing Committee on Finance, extended this relief to leaded aviation gasoline) (see EY Global Tax Alert, Canada temporarily suspends federal excise tax on fuel, dated 20 April 2026)
• A two-year extension of the 2% cap on the inflation adjustment on beer, spirits and wine excise duties
• A two-year extension of the 50% reduction in the excise duty rates on the first 15,000 hectoliters of beer brewed in Canada

For a more detailed summary of the tax measures included in Bill C-30, see EY Global Tax Alert, Canada | Bill C-30 (Spring Economic Update 2026 Implementation Act) - key tax measures and effective dates, dated 1 May 2026.