Boosting innovation and commercialisation

$936M net impact on the budgetary balance over five years, 2026-27 to 2030-31.

The cost line

… no change to existing funding or no fiscal implication · – a further extension will be considered later · 0* less than $0.5 million. Positive numbers cost the budget (spending or forgone revenue); negative numbers improve it.

What the budget says

“To build on this momentum: Budget 2026 proposes to further expand the SR&ED tax incentive program to include certain commercialisation expenses.”

Budget 2026, p. 117 (PDF p. 127)

“Budget 2026 announces several initial measures to deliver on that commitment, including: Modernising policies at Canada's three federal granting councils-the Natural Sciences and Engineering Research Council of Canada, the Social Sciences and Humanities Research Council, and the Canadian Institutes of Health Research-to improve commercialisation rates for publicly funded research.”

Budget 2026, p. 118 (PDF p. 128)

“To help bridge market gaps and catalyse investment in promising new innovations across the economy, including in areas like AI, agri-food, bio-manufacturing, and clean technologies: Budget 2026 proposes to provide $1 billion over six years, starting in 2028-29, to the Strategic Response Fund to support large-scale research and development and innovation projects that can strengthen …”

Budget 2026, p. 118 (PDF p. 128)

Key facts

• Expands the SR&ED tax incentive program to include certain commercialisation expenses. Budget 2026, p. 117 (PDF p. 127)

Amounts named in the text

Stated amounts can cover different periods, cash or accrual bases, previously announced money and loans. They are not additive with the cost line above.

• $6 million
• $930 million over five years, with $235 million ongoing
• $1 billion over six years, starting in 2028-29

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• Rewarding innovation by helping Canadian ideas and talent succeedno cost lineNo cost line