Chapter 6 · Additional investments - A more efficient government
Interest deductibility limits
$555M net impact on the budgetary balance over five years, 2026-27 to 2030-31.
The cost line
| Line | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 | Total |
|---|---|---|---|---|---|---|
| Interest deductibility limits | 235 | 80 | 80 | 80 | 80 | 555 |
… 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
“This measure proposes to expand the exceptions to the excessive interest and financing expenses limitation rules for purpose-built rental housing and regulated energy utility businesses to cover indirect funding within an affiliated group and by broadening the scope of a regulated energy utility business to incorporate prices set by Crown corporations and through government-operated markets.”
Budget 2026, p. 311 (PDF p. 329)
Also in this section
- Information sharing - pension administrators−$30MSavings or revenue
- Registered pension plans−$148MSavings or revenue
- Federal fuel excise tax licensing framework$20MTax measure
- GST/HST health measures$199MTax measureHealth
- The Public Service Occupational Health Program$38MProgram spendingHealth
- Supporting employees affected by workplace injuries$137MProgram spending
- Supporting the accountability and modernisation of the Royal Canadian Mounted Police (RCMP)$18MProgram spending
- Strengthening the Courts Administration Service (CAS)$58MProgram spending