Building an economy with good-paying jobs that helps Canadians-especially Millennials and Gen Z-get ahead requires enabling entrepreneurs to increase productivity and boost innovation. To do this, in Budget 2024, the federal government is taking action to help entrepreneurs scale-up their ideas and seize the opportunities of the global economy to create good jobs.
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance; the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry; and, the Honourable Anita Anand, President of the Treasury Board, highlighted Budget 2024 investments in Canadian entrepreneurs and start-ups to build an economy where every generation can get ahead. Budget 2024 is making strategic investments in innovation, research, and support for entrepreneurs, including:
- The new Canadian Entrepreneurs' Incentive designed to encourage innovative entrepreneurs in research and start-up phases to scale up their businesses, especially in the technology and manufacturing sectors. This incentive will reduce the inclusion rate to 33.3 per cent on a lifetime maximum of $2 million in eligible capital gains, resulting in entrepreneurs paying less tax on up to $6.25 million in capital gains.
- A new Accelerated Capital Cost Allowance for innovation-enabling and productivity-enhancing assets, such as computers and data network infrastructure. This means that it will cost businesses less to invest in cutting-edge technologies that can make their workforce more productive.
- Using regulatory sandboxes to cut the red tape that holds back innovation. By amending the Red Tape Reduction Act to offer exemptions to existing legislation and regulations, and reforming regulations to adapt to modern business realities, we can accelerate innovation and unlock the full potential of Canadian innovators.
- Enhancing Federal Research Support, with nearly $5 billion for investments in modern, high-quality research facilities and infrastructure, research grants, and post-secondary education, which are essential for breakthroughs in Canadian research and science. This includes $2.6 billion for core research grants and to foster homegrown, top-tier research talent by streamlining and enhancing scholarships and fellowships through Canada's research granting councils.
- Investing in Canadian Start-ups through the Venture Capital Catalyst Initiative with $200 million over two years, to increase access to venture capital for equity-deserving entrepreneurs, and to invest in underserved communities and outside key metropolitan hubs.
The Canadian economy is creating new, high-paying jobs, in high-growth sectors, like clean tech, clean electricity, and scientific research and development. Budget 2024 will further this momentum by making strategic investments that create opportunities for workers today-driving productivity and economic growth for generations to come.
