With a federal election seemingly on the horizon, it is unclear to what extent Budget 2024 (which was introduced in Parliament by the former Deputy Prime Minister and Minister of Finance on April 16, 2024) - including, most prominently, the proposed increase in the capital gains inclusion rate from 50% to 66-2/3% - will survive if a party other than the Liberals forms the next federal Government.

To view the Summary of Budget 2024 Proposals of Greatest Relevance to Clients of McLeod Law, click here). Although a similar observation could be made regarding the 2024 Fall Economic Statement (the "Fall Economic Statement"), delivered on December 16, 2024, it includes far fewer controversial tax proposals and, in our view, is less likely to be dismissed by a new Government.

In any event, as McLeod Law LLP’s tax lawyers, we are pleased to provide a summary of the tax-related highlights of the Fall Economic Statement (the “Summary”). This Summary focuses on the provisions most relevant to our clients, rather than covering every tax-related measure included in the Fall Economic Statement.

Key Takeaways from the 2024 Fall Economic Statement

• Boosting Investment and Energy Exports: Updates on major projects like the Trans Mountain Expansion and new Indigenous-led LNG facilities.

• Advancing Artificial Intelligence: Investments to strengthen Canada’s leadership in AI through funding for research, infrastructure, and commercialization.

• Improving Trade and Supporting Indigenous Communities: Plans to reduce trade barriers, promote labor mobility, and help Indigenous groups participate in energy projects.

• Tax Incentives for Green Growth: Details on expanded tax credits for renewable energy, clean technologies, and electric vehicle supply chains.

• Personal and Business Tax Updates: Changes to benefits like the Canada Disability Benefit and new incentives for small businesses and investors.

These measures aim to grow Canada’s economy, support innovation, and create opportunities across various sectors. However, with an election coming, some proposals could change depending on the next government’s priorities.

We’re here to help you navigate these updates and identify opportunities that align with your goals.

For all the details, download the full Statement Tax-Related Highlights of 2024 Fall Economic Statement.