Major Tax Relief for Canadian Businesses: Bill C-15 March 2026
The Canada Revenue Agency has enacted sweeping tax changes through Bill C-15, substantively enacted February 26, 2026, bringing significant relief and new compliance requirements for Canadian businesses. These changes represent the most substantial overhaul to business tax incentives in recent years, with immediate impacts for Ontario small businesses and manufacturing operations across the GTA.
For business owners in Mississauga, Toronto, and throughout Ontario, understanding these changes isn’t optional—it’s essential to maximizing tax savings and avoiding costly compliance mistakes in 2026.
What This Means for Your Business
Bill C-15 introduces three game-changing provisions that every Canadian business owner needs to understand:
1. SR&ED Investment Tax Credit Doubles
The annual expenditure limit for the refundable Scientific Research and Experimental Development (SR&ED) investment tax credit has doubled from $3 million to $6 million for Canadian-controlled private corporations (CCPCs). This 35% refundable credit can now be claimed by eligible Canadian public corporations for the first time, and capital expenditures are once again eligible.
If your business invests in product development, process improvements, or technology innovation, you could be leaving substantial money on the table by not claiming SR&ED credits. The enhanced $6 million limit means businesses undertaking significant R&D projects can now recover up to $2.1 million annually through this program.
2. Accelerated Capital Cost Allowance Reinstated
The accelerated capital cost allowance (CCA) has been reinstated for most capital properties. Even more significantly, immediate expensing is now permitted for eligible manufacturing and processing buildings and qualifying improvements acquired on or after November 4, 2025, and used before 2030.
For manufacturers and processors in Ontario, this means you can write off the full cost of new buildings and equipment in the year of purchase, rather than depreciating over many years. This accelerates cash flow and reduces your tax burden immediately.
3. Transfer Pricing Rules Tightened
Significant amendments to Canada’s transfer pricing rules take effect for tax years beginning after November 4, 2025. The new “single adjustment application rule” applies when the actual conditions of a transaction differ from arm’s-length conditions.
The compliance timeline has been compressed dramatically—businesses now have just 30 days to provide contemporaneous documentation when the CRA requests it, down from the previous 90-day window. If your business has cross-border transactions with related parties, you need transfer pricing documentation ready now, not when the CRA calls.
Key Details & Numbers
SR&ED Program Enhancements (Effective for tax years beginning on or after December 16, 2024)
- Annual expenditure limit increased: $3M → $6M
- Maximum refundable credit for CCPCs: $2.1M annually (35% of $6M)
- Credit extended to eligible Canadian public corporations
- Capital expenditures now eligible again
Accelerated CCA & Immediate Expensing
- Reinstated for most capital properties
- Immediate expensing for manufacturing/processing buildings acquired after Nov 4, 2025
- Property must be used before 2030
- Specific usage requirements must be met
Transfer Pricing Documentation Requirements
- 30-day deadline for contemporaneous documentation (down from 90 days)
- Applies to tax years beginning after November 4, 2025
- Single adjustment application rule for non-arm’s-length transactions
- Penalties for non-compliance can exceed $100,000
Other Notable Changes in Bill C-15
- Carbon capture credit extended: Full CCUS investment tax credit rates now apply through end of 2035 (5-year extension)
- Digital services tax repealed: Effective June 20, 2024
- Employee ownership incentives: New $10M capital gains exemption for qualifying business sales to worker cooperatives
What You Should Do Now
If you’re a CCPC investing in R&D:
Review all 2024 and 2025 projects to identify SR&ED-eligible expenditures. The doubled $6M limit means projects you previously couldn’t fully claim may now qualify for substantial refunds. Capital expenditures on R&D equipment are back in scope—don’t miss this opportunity.
If you’re in manufacturing or processing:
Accelerate planned building improvements and equipment purchases to take advantage of immediate expensing. Properties acquired after November 4, 2025 and put into use before 2030 can be written off in full. This is a massive cash flow advantage for expansion projects in 2026-2029.
If you have cross-border transactions:
Get your transfer pricing documentation in order immediately. The 30-day compliance window is punishingly short. Work with your CPA to prepare contemporaneous documentation that demonstrates arm’s-length pricing for all related-party transactions. Waiting until an audit begins is too late.
For all Canadian businesses:
- Review your 2025 and 2026 tax planning in light of these changes
- Assess whether the extended CCUS credits apply to your operations or planned investments
- Consider the employee ownership exemption if succession planning is on your radar
- Update your CPP and EI payroll calculations—2026 contribution limits have increased (employee CPP max: $4,230.45; EI max: $1,123.07)
How Insight Accounting Can Help
At Insight Accounting CPA in Mississauga, we’re already working with Ontario businesses to maximize their SR&ED claims, accelerate capital cost deductions, and ensure transfer pricing compliance under the new Bill C-15 rules.
Our services include:
- SR&ED Consulting: We identify eligible projects, prepare documentation, and maximize your refundable investment tax credits. With the limit doubled to $6M, many businesses now qualify for claims they previously couldn’t pursue.
- Corporate Tax Planning: We help you time capital acquisitions to take advantage of immediate expensing rules and optimize your accelerated CCA claims for maximum cash flow benefit.
- Transfer Pricing Documentation: We prepare the contemporaneous documentation required under the new 30-day compliance rules, ensuring you’re audit-ready before the CRA calls.
- AI-Powered Advisory: Our AI-enhanced accounting platform identifies tax-saving opportunities automatically, so you never miss a deduction or credit you’re entitled to under the new rules.
Bill C-15 isn’t just another tax update—it’s a significant opportunity for Canadian businesses to reduce their tax burden and accelerate growth investments. But only if you act strategically and meet the new compliance timelines.
Call 905-270-1873 or visit our Mississauga office to discuss how these changes impact your business specifically. We’re here to help you navigate complexity and keep more of what you earn.
Frequently Asked Questions
Q: Does the $6M SR&ED limit apply to tax years that have already ended?
A: The enhanced SR&ED provisions apply to tax years beginning on or after December 16, 2024. If your tax year began before that date but ends after, you may need to prorate the benefit. Consult with a CPA to determine your exact eligibility.
Q: What counts as “contemporaneous documentation” for transfer pricing?
A: Contemporaneous documentation must be prepared at the time (or shortly after) the transaction occurs and demonstrates that your pricing methodology aligns with arm’s-length principles. It typically includes functional analysis, economic analysis, and comparable benchmarking. Under the new rules, you must provide this within 30 days of a CRA request—not 30 days to create it, but 30 days to deliver already-existing documentation.
Q: Can I claim immediate expensing on equipment I purchased in 2025?
A: Immediate expensing for manufacturing and processing buildings applies to qualifying properties acquired on or after November 4, 2025, and used before 2030. If you purchased equipment (not buildings) in 2025, you may still benefit from reinstated accelerated CCA rules, but the immediate 100% write-off is specifically for manufacturing/processing buildings meeting the date and usage criteria.
About the Author
Bader A. Chowdry, CPA, CA, LPA is the founder of Insight Accounting CPA, serving businesses across Mississauga, Toronto, and the Greater Toronto Area. With over 15 years of experience in Canadian tax law and corporate advisory, Bader helps small and medium-sized businesses navigate complex tax changes and optimize their financial strategies.
Insight Accounting CPA
Mississauga, Ontario | 905-270-1873
Contact us today for a consultation on how Bill C-15 impacts your business.
Published March 10, 2026