In addition to a deficit of $61.9 billion for 2023-24, the Update anticipates a deficit of $48.3 billion for 2024-25 and forecasts deficits of $42.2 billion for 2025-26 and $31 billion for 2026-27. The Update provides changes for the Scientific Research and Experimental Development (SR&ED) program, enhances the capital gains deferral on small business share rollovers, reinstates the Accelerated Investment Incentive and Immediate Expensing measures for certain property and imposes additional reporting requirements on non-profit organizations (NPOs), among other changes.
Due to ongoing uncertainty in Parliament, it is not clear whether the tax measures announced in the 2024 Fall Economic Update will be enacted. Because Canada has a minority federal government, these tax measures cannot be passed into law without the support of opposition political parties.
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