Startup Gov | 2024 Federal Budget Review

Important news for Canadian entrepreneurs!

This afternoon the 2024 Federal Budget was released. Here are some key items that will impact Canadian entrepreneurs and small and medium-sized business owners:

• The New Canada Carbon Rebate for Small Businesses?to return proceeds from the price on pollution from 2019-20 through 2023-24 to an estimated 600,000 businesses in provinces where the federal backstop applies, with 499 or fewer employees through a new refundable tax credit. This would deliver over $2.5 billion directly to these small- and medium-sized businesses. A big thank you to the Canadian Federation of Independent Business as they continue to call on the government to ensure the 2.5 Billion is returned in 2024 with meaningful rebates for the smallest businesses and to raise the share of future SME rebates back to 9 % of carbon tax revenue or more!
• Empowering Young Entrepreneurs?with an investment of $60 million over five years for Futurpreneur Canada, which is a national not-for-profit organization that provides young entrepreneurs with access to financing, mentorship, and other business supports to help them launch and grow their business.
• Lifetime Capital Gains Exemption Increase?from the current amount of $1,016,836 in capital gains tax-free on the sale of small business shares and farming and fishing property to $1.25 million, effective June 25, 2024. The Lifetime Capital Gains Exemption will continue to be indexed to inflation thereafter.
• A new Canadian Entrepreneurs’ Incentive?to reduce the inclusion rate to 33.3 per cent on a lifetime maximum of $2 million in eligible capital gains.
• Investing in Canadian Startups?with $200 million over two years, starting in 2026-27, on a cash basis, to increase access to venture capital for equity-deserving entrepreneurs, and to invest in underserved communities and outside key metropolitan hubs.
• Boosting Government Procurement from Small- and Medium-Sized Businesses,?by announcing the government’s intention to propose legislated procurement targets for small- and medium-sized businesses and innovative firms.
• Supporting Indigenous-owned Businesses?by providing $350 million over five years to Indigenous Financial Institutions, including $30 million for Métis Capital Corporations.

Startup Canada will continue to bring the perspectives of entrepreneurs to government via our Startup Gov program to ensure founders can benefit from these key items. Read more from Finance Canada / Finances Canada at https://www.canada.ca/en/department-finance/news/2024/04/growing-small-businesses.html.

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