Diana Ambrozas, Clare Annett, Kelly Farrah, Alexandre Lafrenière, Michaël Lambert-Racine, André Léonard, Joëlle Malo, Mayra Perez-Leclerc and Édison Roy-César
Library and Research Services
Any substantive changes in this Library of Parliament Legislative Summary that have been made since the preceding issue are indicated in bold print.
Disclaimer:
This unedited legislative summary of a budget implementation bill is made available to parliamentarians, parliamentary staff and the public to ensure timely access to the information, research and analysis needed to study the bill in question. This document concerns only the version of the bill tabled at first reading and will not be revised to reflect amendments made to the bill as it moves through the legislative process.
Bill C-30, An Act to implement certain provisions of the spring economic update tabled in Parliament on April 28, 2026 (short title: Spring Economic Update 2026 Implementation Act),1 was introduced in the House of Commons on 29 April 2026 by the Honourable François-Philippe Champagne, Minister of Finance and National Revenue.
Bill C-30 implements some of the measures that were announced in the federal government’s Spring Economic Update 2026: Canada Strong for All, which was released on 28 April 2026.2
The bill consists of the following three parts:
This unedited legislative summary provides a brief description of the main measures proposed in Bill C-30. For ease of reference, the information is presented in the same order as it appears in the summary of the bill. Unless otherwise specified, provisions in this bill come into force on Royal Assent.
The Labour Mobility Deduction for eligible tradespeople is a deduction – an amount that reduces an individual’s taxable income – of up to $4,000 per year for expenses incurred during a temporary relocation (at least 36 hours) necessary to perform their duties under a temporary work contract. Eligible tradespeople are tradespeople and apprentices in the construction sector. They can deduct the costs of multiple eligible relocations per year, up to an annual maximum.8
The deduction is capped at 50% of the worker’s income earned at the temporary work location. Eligible expenses include transportation and meal costs for one round trip between the usual residence and the temporary lodging and the costs of the temporary lodging. The temporary lodging must be at least 150 kilometres closer to the temporary work location than the usual residence.9
Clause 2 of Bill C-30 amends sections 8(1)(t)(i) and 8(14)(c)(v) of the Income Tax Act to reduce that distance to 120 kilometres and to increase the maximum deduction from $4,000 to $10,000 per year. These changes are to take effect starting in the 2026 tax year. Clause 5 amends section 177.1(2) of the ITA to provide that, starting in 2027, the maximum deduction increases in line with inflation, as measured by Statistics Canada’s Consumer Price Index.
If a business owner sells shares in their corporation, the capital gains realized through the transaction are taxable. In 2023–2024, the federal government introduced the concept of an employee ownership trust (EOT), a form of employee stock ownership in which a trust holds shares of a business for the benefit of the employees. As a result, owners of a business who sell to a qualifying EOT can benefit from a tax exemption for capital gains of up to $10 million, applicable to sales occurring between 1 January 2024 and 31 December 2026.
These provisions have been in effect since 1 January 2024 under section 110.61 of the ITA. The Budget 2025 Implementation Act, No. 1,10 added section 110.62 to the ITA to provide for a similar exemption for capital gains realized through the sale of shares to a qualifying worker co-operative over the same period.
Clauses 3 and 4 of Bill C-30 make the exemptions in sections 110.61(1) and 110.62(1) permanent by deleting the words “and before 2027.”
The Home Buyers’ Plan enables individuals to withdraw funds from their Registered Retirement Savings Plan (RRSP) in order to purchase or build a qualifying home. Individuals must not have owned a qualifying home during the previous four years, and they have up to 15 years to repay the amounts withdrawn from their RRSP. Repayments must normally start two years after the first withdrawal. This two-year period is known as the “grace period.” 11
Budget 2024 announced a temporary extension of the grace period from two years to five years for first withdrawals made between 2022 and 2025, inclusively.12
Clause 6 of Bill C-30 amends sections 146.01(4.1) and 146.01(4.2) of the ITA to keep this temporary change in effect for first withdrawals made between 2026 and 2028, inclusively.
On 26 January 2026, the federal government announced several measures aiming to make groceries and other essentials more affordable for Canadians, among which the immediate expensing for greenhouse buildings.13 According to the government, this measure will “supercharge food production,” 14 as it is meant “to support increased domestic supply and investment in food production.” 15
This section discusses the main provisions of Bill C-30 that enact this measure.
Clause 7(1) of Bill C-30 amends section 1100(1) of the Income Tax Regulations, which provides the deductions allowed in computing a taxpayer’s income for a year in relation to the capital cost of certain types of property, to introduce a special allowance for “eligible greenhouses.” This optional,16 special allowance allows full and immediate expensing for “eligible greenhouses” until 2030, with the allowance rate gradually decreasing until 2034, at which point the special allowance is no longer available.
An “eligible greenhouse” is generally defined in clause 10(1) of the bill (amending section 1104(2) of the ITR) as a property that is located in Canada and acquired after 3 November 2025, and that is either:
Of note, specific rules apply to additions and alterations of existing greenhouses, as well as in situations where a greenhouse was under construction on the day these changes come into force.
Pursuant to clauses 7(5), 8(2), 9(4) and 10(2), these changes are deemed to have come into force on 4 November 2025.
The Incentives for Zero-Emission Vehicles (iZEV) Program provided an incentive of up to $5,000 for purchasing an electric vehicle. The iZEV Program was launched in May 2019 and was suspended in January 2025 due to the depletion of its funding ahead of its expected end date of 31 March 2025.17 The program was replaced by the Electric Vehicle Affordability Program (EVAP), which has different terms and conditions. The EVAP will run from 16 February 2026 to 31 March 2031.18
Clause 9(2) of Bill C-30 amends section 1102(26)(b) of the ITR to provide that the EVAP is a prescribed program. As a result, a business cannot use the same zero-emission vehicle, as defined in section 248(1) of the ITA, to benefit from both an EVAP incentive and the temporary enhanced capital cost allowance rate of 100% in the first year, which is subject to a gradual reduction starting in 2030.
Clause 9(5) of Bill C-30 provides that this change is deemed to have come into force on 16 February 2026.
Part 2 of Bill C-30 amends the Excise Tax Act, the Excise Act and the Excise Act, 2001 to provide relief from certain excise levies.
On 14 April 2026, the federal government announced that it was “temporarily suspending the federal fuel excise tax on gasoline and diesel across Canada,” 19 starting on 20 April 2026 and ending on 7 September 2026 inclusively (the relief period). According to the government, “[t]his measure is intended to address fuel price pressures caused by global oil disruptions related to the Middle East conflict.” 20
To implement this change, clause 11(1) of Bill C-30 amends Schedule I to the ETA by adding section 9.2, which provides that the amount of excise tax that is imposed under section 23 of the ETA in respect of unleaded gasoline, unleaded aviation gasoline, diesel fuel or aviation fuel, as the case may be, is determined by applying a rate of $0 per litre. The reduced rate applies to eligible fuels “that are manufactured or produced and delivered to a purchaser, sold by a licensed wholesaler and delivered to a purchaser, or imported into Canada” 21 during the relief period.
Pursuant to clause 11(2) of Bill C-30, this change is deemed to have come into force on 20 April 2026.
On 1 April 2026, the government “announced a two-year extension of alcohol excise duty relief” 22 for brewers, distillers, and winemakers, during what it referred to as “a period of global uncertainty.” 23
To implement this change, clauses 12(1), 16(1) and 17(1) of Bill C-30 respectively amend section 170.2 of the Excise Act, and sections 123.1 and 135.1 of the Excise Act, 2001, to extend “[t]he two per cent cap on the inflation adjustment for excise duties on beer, spirits, and wine [in place since 1 April 2023] … for two additional years.” 24
Pursuant to clauses 12(2), 16(2) and 17(2) of Bill C-30, these changes are deemed to have come into force on 1 April 2026.
In addition, clauses 13 to 15 of Bill C-30 amend sections 1 to 3 of Part II.1 of the Schedule to the Excise Act, which set out the 50% reduction in excise duty rates on the first 15,000 hectolitres of beer brewed in Canada. This temporary relief was introduced by the Budget Implementation Act, 2024, No. 1 25 and was set to expire on 31 March 2026. It will now expire on 31 March 2028.
The Investment Canada Act (ICA) 26 sets out the primary framework governing the review of takeovers of Canadian businesses, and the creation of Canadian businesses, by non-Canadians. The ICA provides for two types of review: the first concerns the net benefit, while the second addresses risks to national security. Pursuant to section 522.34 of the Bank Act,27 the ICA does not apply to certain investments in Canadian financial and non-financial businesses by a foreign bank or an entity associated with a foreign bank (EAFB).
In its Spring Economic Update 2026: Canada Strong for All, the federal government announced that it will “bring forward regulations this spring allowing federally regulated financial institutions to make a broader range of investments to improve financial services.” 28 To implement these regulations, the government is proposing to amend the Bank Act to
ensure the review for national security risks of investments in Canadian businesses by foreign banks and their affiliates is consistent with how other foreign investments in Canada are assessed.29
Clause 18(1) of Bill C-30 amends section 522.34(1) of the Bank Act to provide that investments by a foreign bank or an EAFB that were previously exempted from review under the ICA are exempt only if they are subject to an approval under the Bank Act, the Trust and Loan Companies Act 30 or the Insurance Companies Act.31 As a result, investments by a foreign bank or an EAFB that were previously exempt and do not require an approval under those Acts are now subject to the ICA.
Clause 18(1) of Bill C-30 also amends the list of types of investment exempted in section 522.34(1) to include the acquisition, in whole or in part, or the creation of a Canadian business referred to in section 25.1(c) of the ICA. That section provides that the acquisition, in whole or in part, or establishment, by a non-Canadian of a business that is operated in whole or in part in Canada and that meets certain criteria is subject to a national security risk review.
Section 522.34(2) of the Bank Act defines certain terms used in section 522.34(1). Clause 18(2) of Bill C-30 adds the definitions “Canadian business” and “new Canadian business,” which have the same meaning as they do in the ICA. Clause 19 of Bill C-30 provides that these amendments come into force on the 120th day after the bill receives Royal Assent.
The Retail Payments Activities Act,32 the Payment Clearing and Settlement Act,33 the Consumer-Driven Banking Act 34 and the Stablecoin Act 35 contain provisions allowing the Bank of Canada (the Bank) to ascertain and assess charges or fees against regulated entities to recover expenses incurred by the Bank in carrying out its responsibilities under these Acts. In its Spring Economic Update 2026: Canada Strong for All, the government announced plans to “consolidate the Bank of Canada’s cost recovery responsibilities under one act,” 36 namely the Bank of Canada Act (BCA).37
Clause 20 of Bill C-30 amends section 2 of the BCA by adding the definition of “entity subject to assessment fees,” which includes the following types of entities:
Clause 21 of Bill C-30 adds new sections 30.2 to 30.6 to the BCA to allow the Bank to ascertain and assess fees against these entities.
New section 30.2 pertains to the way the Bank ascertains and assesses fees. It provides that the Bank must annually ascertain the expenses incurred in carrying out its responsibilities under these Acts and that the amount ascertained is final and conclusive. Once this amount is ascertained, the Bank must assess against each entity subject to assessment fees a portion of the total amount of expenses that is attributable to those entities in the manner provided for in the regulations. It may also prepare an interim assessment against any subject entity during the year. In assessing fees, the Bank must take into account any categories of entities provided for in the regulations. If there are no regulations regarding assessments and the categories of entities, the Bank establishes assessment guidelines and establishes the categories of entities itself.
New section 30.3 also allows the Bank to assess against a subject entity a charge for disbursements for services provided by or on behalf of the Bank for that entity.
New section 30.4 provides that any assessment under the new sections 30.2 and 30.3 is final and conclusive and constitutes a debt due to the Bank that is immediately payable, with any unpaid amount subject to interest charges.
New section 30.5 allows the Bank to request from a subject entity any information it deems necessary to assess a fee, and the entity must comply with this request.
New section 30.6 confers on the Governor in Council the power to make regulations amending the definition “entity subject to assessment fees” in order to add or remove any type of entity and to add a definition of any entity or category of entities. It also permits the making of regulations concerning, among other things, assessments, categories of entities, and requests for information by the Bank.
Clauses 22 to 35 of Bill C-30 make related amendments to the Retail Payment Activities Act, the Payment Clearing and Settlement Act, the Consumer-Driven Banking Act and the Stablecoin Act. In particular, they repeal provisions relating to how the Bank ascertains and assesses fees or amounts and add references to the new sections of the BCA. Clause 36 provides that the provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council, subject to certain conditions.
Section 44 of the Canadian Payments Act 38 provides legal immunity to His Majesty, the Minister of Finance, any officer or employee of the Department of Finance and any other person acting under the direction of the Minister for any acts or omissions committed in good faith while administering the Act.
Clause 37 of Bill C-30 adds a similar provision, section 44.1, that applies to the Canadian Payments Association,39 its officers, its employees and other individuals whose services it engages and grants them immunity from civil liability – except regarding contracts – for any acts or omissions committed in good faith while administering the Act. The new section specifies that the individuals granted this immunity are not relieved of any liability to the Canadian Payments Association.
Clauses 38 and 39 of Bill C-30 amend or repeal certain provisions in the Employment Insurance Act (EIA),40 which allow workers in seasonal employment to claim up to five additional weeks of Employment Insurance (EI) regular benefits, to a maximum of 45 weeks. Clause 40 of Bill C-30 specifies the coming into force of these measures. Among other things, the amendments provide that:
As part of their 2025–2027 triennial review of the Canada Pension Plan (CPP), the federal Minister of Finance and his provincial counterparts recommended reducing the base CPP contribution rate. This was supported by the Chief Actuary of the Office of the Superintendent of Financial Institutions in her 32nd report on the CPP.42 Clauses 41 to 43 of Bill C-30 amend section 113.1 and Schedule 1 of the Canada Pension Plan (CPP Act) 43 to lower the base contribution rate for employees and employers from 4.95% to 4.75% (9.5% for those self-employed), effective 1 January 2027.
Clause 44 of Bill C-30 renders section 114(2) of the CPP Act, which would normally delay coming into force, inapplicable to this bill amendment.
The federal government’s Spring Economic Update 2026: Canada Strong for All announced upcoming legislation that would ensure the government’s capacity to obtain information necessary for a comprehensive evaluation of airport reforms.44 According to the government’s budget 2025, this evaluation might consider lease extensions with airport authorities, economic development activities on airport lands, existing ground lease rent formulas, and options for the privatization of airports.45
Clause 45 of Bill C-30 amends the Canada Transportation Act 46 to expand the powers of the Minister of Transport to obtain certain information from owners or operators of an aviation facility, including an airport, or from anyone whose activities may affect the value or such a facility, or the value of the owner or operator.
These individuals or entities would be required to provide the Minister with any information that the Minister considers necessary for the function and exercise of his or her duties, or for the development of transportation policies. This would specifically include information relating to the value of an aviation facility, the value of an owner or operator (whether individual or entity) of an aviation facility, or, more broadly, the capacity and development of all or part of the national air transportation system.
The Minister of Transport may share the obtained information with a Crown corporation, or with an external advisor to the Minister on the development of transportation policies (clause 46).
The Canadian Food Inspection Agency Act (CFIAA) 47 establishes the Canadian Food Inspection Agency (CFIA), consolidating federal responsibility for the protection and inspection of food, animals and plants under a single agency. Clauses 47 to 50 of Bill C-30 amend the CFIAA, while clause 51 makes a consequential amendment to the Agriculture and Agri-Food Administrative Monetary Penalties Act.48
Clauses 47 and 48 of Bill C-30 amend the legislated mandate of the CFIA. Clause 48 of Bill C-30 replaces sections 11(4) and 11(5) concerning the role of the Minister of Health and the Canada Border Services Agency respectively, with new section 11(4), while clause 49 of Bill C-30 moves the existing sections 11(4) and 11(5) to become new sections 11.1 and 11.2.
New section 11(4) clarifies the mandate of the CFIA, specifying that when carrying out its administrative and enforcement responsibilities – with the exception of certain Food and Drugs Act 49 (FDA) provisions related to public health, safety, or nutrition– it may perform specific actions as appropriate and in accordance with the Acts referred to in sections 11(1) 50 and 11(3) 51 of the CFIAA. These include measures: mitigating health and environmental risks; promoting public awareness of these risks; ensuring regulatory compliance and consumer protection; facilitating trade and upholding Canada’s international reputation; and considering national and regional economic security and national food security.
Clause 50 of Bill C-30 amends the CFIAA by adding new sections 31.1 and 31.2 granting the Governor in Council, when necessary to protect national economic security, regional economic security or national food security, and on the recommendation of the appropriate ministers, the authority to issue exemption orders. These orders may exempt persons, classes of persons, things or activities from the application of Acts referred to in section 11(1) of the CFIAA as well as the FDA subject to certain restrictions. The term “appropriate Minister” is defined in new section 31.1(7) as the specific federal minister responsible for the administration of the provision related to the exemption.
These exemptions orders can be made with respect to sections of the FDA that relate to food, other than those provisions that relate to public health, safety or nutrition. Conversely, exemption orders cannot be made with respect to the Plant Breeders’ Rights Act despite being included in section 11(1) of the CFIAA.
New sections 31.1(1) and 31.1(2) of the CFIAA specify that exemption orders may be made for, and may be extended beyond, a period of up to three years after the day the order comes into force, if the Governor in Council is of the opinion that the exemption is necessary to protect national or regional economic security or national food security, and is not likely to cause an unreasonable risk to food safety, the environment or the health of humans, animals or plants.
New sections 31.1(3) and 31.1 (4) of the CFIAA require that the notice of the proposed exemption order be made public before it is made, and the order must also be made public. New section 31.1(6) empowers the Governor in Council to make regulations related to the exemption orders outlined in section 31.1(1), as well as to define “economic security” and “food security” for the purpose of the CFIAA. New section 31.1(5) exempts the Governor in Council from the application of the Statutory Instruments Act 52 process when developing an exemption order under section 31.1(1).
Finally, new sections 31.2(1) and 31.2(2) establish the penalties for those who fail to follow the conditions outlined in the exemption order. Section 31.2(1) states that if a person fails to follow conditions required by an exemption order, they lose the benefit of that exemption.
The Pest Control Products Act 53 (PCPA) sets out the requirements and procedures for the registration of pest control products, and establishes prohibitions respecting their manufacture, distribution and use54. This section describes the major changes Division 8 of Bill C-30 makes to the PCPA.
Section 4(1) of the PCPA provides that the Minister of Health’s primary objective “is to prevent unacceptable risks to individuals and the environment from the use of pest control products.” Section 4(2) lists ancillary objectives. Clause 53 of Bill C-30 adds section 4(3), requiring the Minister to consider national economic security, regional economic security or national food security when administering the Act.
Under section 8(4) of the PCPA, the Minister will deny an application to register or amend the registration of a pest control product if the Minister does not consider the health or environmental risks, or the value, of the product to be acceptable.
Section 2(2) of the PCPA defines when health or environmental risks are acceptable, namely “if there is reasonable certainty that no harm to human health, future generations or the environment will result from exposure to or use of the product, taking into account its conditions or proposed conditions of registration.”
Under section 16(1) of the PCPA, the Minister may initiate the re-evaluation of a registered pest control product in certain circumstances, while under section 16(2), the Minister is required to do so in specified circumstances. Under section 17(1), the Minister must initiate a special review of a registered product if there are reasonable grounds to believe that the product’s health or environmental risks, or its value, is unacceptable.
During a re-evaluation or special review, section 20(1)(b) of the PCPA provides that the Minister may cancel or amend the product’s registration if the Minister believes such action is necessary to protect human health or safety, or the environment, considering the precautionary principle.
Clauses 54 and 57 of Bill C-30 add new sections 8.1 and 28.1, respectively, to the PCPA. They create an emergency exception to the PCPA’s standard product registration processes. Specifically, where the Minister does not consider the environmental risks of a pest control product to be acceptable, the Governor in Council may, by order:
to permit the product’s use for the emergency control of a seriously detrimental infestation. This power may be exercised if the Governor in Council considers it necessary to do so to protect national economic security, regional economic security or national food security.
Orders made under new sections 8.1 and 28.1 include the following key provisions:
Clause 55 of Bill C-30 amends section 17 of the PCPA to provide that the Minister is not to initiate a special review of a pest control product’s environmental risks if an order made under new section 8.1 or 28.1 in respect to that product is in effect.
Clause 59(1) of Bill C-30 amends section 67(1) to provide the Governor in Council with authority to define the terms “economic security,” “food security” and “seriously detrimental infestation” through regulations.
This Legislative Summary was prepared by the following authors:
(10.45 MB, 178 pages), 28 April 2026. [ Return to text ] (5 MB, 393 pages), p. 200. [ Return to text ] (5.14 MB, 430 pages), Budget 2024, p. 68. [ Return to text ] (10.45 MB, 178 pages), 28 April 2026, p. 16. [ Return to text ] (10.45 MB, 178 pages), 28 April 2026, p. 85. [ Return to text ] (10.45 MB, 178 pages), 28 April 2026, p. 145. [ Return to text ] (2.82 MB, 211 pages), revised version, 2026. [ Return to text ] (10.45 MB, 178 pages), 28 April 2026, p. 57. [ Return to text ]© Library of Parliament