CCI Statement on Updates to the Canadian Entrepreneurs' Incentive

Today, the federal government announced changes to the Canadian Entrepreneurs’ Incentive (CEI). The CEI is a new tax credit introduced in the 2024 budget designed to partially offset the impact of the capital gains tax hike that was also announced in the budget.

In response to today's announcement, CCI President Benjamin Bergen issued the following statement, on behalf of our members:

"Since the federal budget’s release, Canadian business leaders have urged the government to reverse its proposed tax changes to capital gains and instead support strategies that build lasting wealth and prosperity.

"The tweaks to the CEI announced today fall short of addressing the harm caused by the government’s tax plans on Canada’s innovation economy. CCI continues to call for a full reversal of the government’s plan because taxing our way to prosperity isn’t a viable path.

"In CCI’s recent pulse check survey, 90% of Canadian innovators expressed concern that the tax hike will harm the economy, with reduced access to skilled talent and growth capital cited as the primary risks. Furthermore, the Parliamentary Budget Office estimates that the government’s projections from this tax hike won’t deliver the expected windfall. There is neither a political or economic case for these changes any more.

"Half-measures, piecemeal incentives, and misguided strategies will not drive the growth Canada needs. Canadians deserve bold, forward-thinking economic policies that actually foster growth and give companies the talent and capital they need to scale. It’s time for the government to stop taxing ambition and start working with innovators to tackle Canada’s productivity and prosperity challenges. The current path is not just misguided—it’s a dead end.

"CCI has always taken pride in working constructively and substantively with Canadian governments, co-developing policies and strategies to ensure that our economy is on the best possible footing for the 21st century innovation economy.

"We will continue to do this work as we participate in the upcoming consultations."

Media Contact:
James McLeod
Director of Communications
jmcleod@canadianinnovators.org