Corporate Tax Rates and Legislation: Q2 2026 Accounting Status

Issue 2 – Q2 2026 Accounting Status

• Legislative changes—April 1 to June 30, 2026
• Accounting updates—April 1 to June 30, 2026
• Federal and provincial/territorial bills—tabled or received royal assent in 2026
• Corporate income tax rates—accounting status (January 1, 2023 to June 30, 2026)

Legislative changes — April 1 to June 30, 2026

Legislative developments from April 1 to June 30, 2026 that affect income taxes, are outlined below.

2026 Federal Spring Economic Update

On April 28, 2026, the federal government presented its 2026 Spring Economic Update (SEU). Key tax measures include:

• providing implementation details for reinstating accelerated capital cost allowance (CCA) for eligible liquefied natural gas (LNG) equipment and related buildings acquired after November 3, 2025 and first used before 2035 in certified low-carbon LNG facilities
• expanding the list of eligible uses for purposes of the carbon capture, utilization and storage investment tax credit (ITC) to include enhanced oil recovery (at reduced rates)

For more information, see our Tax Insights “2026 Federal Spring Economic Update: Tax highlights”.

Status: As at June 30, 2026, the above noted SEU measures have not been tabled as a bill in the House of Commons and, therefore, are not considered substantively enacted for Canadian GAAP or enacted for US GAAP.

Federal Bill C-30 (2026 SEU and other measures)

Federal Bill C-30, An Act to implement certain provisions of the spring economic update tabled in Parliament on April 28, 2026, which includes the Notice of Ways and Means Motion (NWMM) tabled on April 28, 2026, received first reading on April 29, 2026 and royal assent on June 18, 2026.

Among other measures, Bill C-30 implements immediate expensing (i.e. a 100% first-year CCA deduction) for the cost of eligible greenhouse buildings (including eligible additions and alterations) in Canada acquired after November 3, 2025 and that become available for use before 2030 (phased out 2030 to 2033 and eliminated after 2033).

Status: Bill C-30 is considered substantively enacted for Canadian GAAP as at April 29, 2026, and enacted for US GAAP as at June 18, 2026 (also, see Table 1 below).

Federal Bill C-31 (2025 and 2024 federal budget measures)

Federal Bill C-31, A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025, which includes the NWMM tabled on May 4, 2026, received first reading on May 6, 2026. Bill C-31 implements certain measures announced in the federal government’s 2025 and 2024 federal budgets and other measures and technical amendments, including those that:

• provide immediate expensing (i.e. a 100% first-year CCA deduction) for the cost of acquiring, or making additions or alterations to, eligible buildings acquired after November 3, 2025 and first used for manufacturing and processing (M&P) before 2030 (phased out 2030 to 2033 and eliminated after 2033)
• intend to clarify that, effective November 4, 2025, for the purposes of determining eligible activities under the Canadian exploration expense, expenses incurred for the purpose of determining the quality of a mineral resource, as well as oil and gas accumulations, in Canada will not include those related to determining the economic viability or engineering feasibility of the mineral resource or oil and gas accumulations
• implement the Crypto-Asset Reporting Framework in Canada, starting 2027
• enhance the Canada Revenue Agency’s information gathering powers during tax audits (see our Tax Insights “Bill C-31: Legislation to enhance the Canada Revenue Agency’s audit powers is finally released”)
• expand the clean hydrogen ITC to include pyrolysis of natural gas and other eligible hydrocarbons as an eligible production pathway, for property that is acquired and becomes available for use in an eligible project after December 15, 2024
• amend the Global Minimum Tax Act (GMTA) and the Income Tax Act (ITA) in respect of the Pillar Two (i.e. global minimum tax) regime — key changes include:
  • implementing the Undertaxed Profits Rule and certain Organisation for Economic Co-operation and Development (OECD) administrative guidance in respect of Pillar Two rules (including those related to the Pillar Two “side-by-side” system) in the GMTA
  • integrating the ITA’s foreign affiliate regime and foreign tax credit rules with the GMTA
  • introducing a “de-consolidation” rule in the GMTA in respect of multinational enterprise groups when there is a private Canadian corporation that holds controlling interests in one or more public Canadian corporations
    
    (see our Tax Insights “Bill C-31 amends the Pillar Two rules and introduces new Pillar Two safe harbours”)

Status: Bill C-31 is considered substantively enacted for Canadian GAAP as at May 6, 2026, but not enacted for US GAAP as at June 30, 2026 (also, see Table 1 below).

Quebec Information Bulletin 2026-3 and 2026-4

Quebec’s Ministère des Finances released Information Bulletin:

• 2026-3 “Increase in the small business deduction rate and harmonization with federal tax measures” on April 29, 2026, which states the province’s position on whether it will harmonize with the various measures in federal Bill C-15 (see Table 1), which had received royal assent on March 26, 2026
• 2026-4 “Introduction of tax measures to help Quebecers deal with the cost of living increase and harmonization with certain federal tax measures announced in the Spring Economic Update 2026” on May 25, 2026, which states the province’s position on whether it will harmonize with the various measures in the federal 2026 SEU 

Status: As at June 30, 2026, the harmonization with various federal measures has not been tabled as a bill in the National Assembly of Québec and, therefore, is not considered substantively enacted for Canadian GAAP or enacted for US GAAP.

Quebec Information Bulletin 2026-5

On June 26, 2025, Quebec’s Ministère des Finances released Information Bulletin 2026-5 “Adjustments to certain fiscal measures.” Information Bulletin 2026-5:

• makes several amendments to the new tax holiday for a large investment project, effective for applications for: (i) issuance or amendment of an initial qualification certificate, or a transfer application, filed after June 26, 2026, or (ii) an initial qualification certificate filed after March 21, 2023   
• amends the refundable tax credit for international financial centres (IFC) in respect of back-office activities or of activities relating to an eligible contract, by:
  • removing the 10-year expiration date that currently applies to contract qualification certificates, for certificates issued for an application filed after December 20, 2017
  • recognizing only information technology activities as related activities (for an eligible contract), and making other clarifying amendments, for a certificate filed for a corporation’s taxation year beginning after December 31, 2027
• extends the effective date that the expression “government assistance” will include the value of compliance credits granted to a corporation under the Clean Fuel Regulations by two years, to taxation years beginning after December 31, 2029, for the tax credit for the production of biofuel in Québec and the tax credit for the production of pyrolysis in Québec 

Status: As at June 30, 2026, the measures in Information Bulletin 2026-5 have not been tabled as a bill in the National Assembly of Québec and, therefore, are not considered substantively enacted for Canadian GAAP or enacted for US GAAP.

Provincial/territorial budgets

Newfoundland and Labrador, Nunavut and Prince Edward Island introduced budgets between April 1 and June 30, 2026. None of these budgets announced changes to general and M&P corporate income tax rates or introduced any significant tax measures.

Trade tariffs and government support

United States tariff policy is continuously shifting, and tariffs on certain goods imported from Canada remain in place across key sectors (i.e. aluminum, steel, automotive, copper, lumber, etc.). For more information on the current tariff situation and to help your business assess and manage these tariffs, visit our Tariffs and Trade Policy Resource Centre.

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Accounting updates — April 1 to June 30, 2026

There were no significant updates relating to the accounting for income tax.

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Federal and provincial/territorial bills 

Table 1 lists key bills that include corporate income tax rate changes or other income tax changes (e.g. for research and development) that were:

• tabled or received royal assent during 2026, or
• tabled before 2026, but did not receive royal assent before 2026

Table 1: Federal and provincial/territorial bills
Bolded rows indicate a change in status from April 1 to June 30, 2026.

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Corporate income tax rates—accounting status (January 1, 2023 to June 30, 2026) 

The following information excludes Canadian-controlled private corporation small business rates and thresholds.

Table 2: Corporate income tax rates—accounting status
There were no changes in status from April 1 to June 30, 2026.

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