Back in November 2025, we covered the Budget 2025 and its ambitious suite of business tax changes, including historic upgrades to the SR&ED program and a range of incentives designed to boost innovation and investment in Canada.
Since then, those proposals have been moving through the legislative process. The key vehicle for implementing these changes is Bill C-15, the Budget 2025 Implementation Act, No. 1, and today we’re taking stock of where it stands in Parliament.
What is Bill C-15?
Bill C-15 is the omnibus piece of legislation introduced to give force of law to much of what was outlined in Budget 2025. It encompasses a wide range of measures across taxation, investment incentives, and other reforms, including the enhanced SR&ED regime that businesses have been anticipating.
For innovative businesses, the most notable proposed SR&ED changes include:
- Increase to the enhanced refundable SR&ED expenditure limit (expanding access for growing Canadian-controlled private corporations)
- Adjustments to taxable capital phase-out thresholds, allowing more mid-sized companies to qualify for enhanced rates
- Inclusion of certain capital expenditures (previously excluded) as eligible SR&ED costs
- Modernization and simplification measures aimed at improving administrative efficiency and predictability
If enacted as proposed, these changes would represent one of the most meaningful updates to the SR&ED program in years.
Parliamentary Progress So Far
Bill C-15 has moved through several key stages in the House of Commons:
- First Reading – Completed
- Second Reading – Completed
- Committee Review – Completed
On February 24, 2026, the Standing Committee on Finance presented its report with amendments following clause-by-clause review of the legislation.
The bill now returns to the House of Commons for report stage and third reading, where MPs will consider the committee’s amendments before a final vote. Once approved in the House, the bill would proceed to the Senate for further consideration.
What Happened in Committee?
The Finance Committee’s review reflected both government priorities and cross-party input. During clause-by-clause consideration, committee members made a number of technical refinements and adopted specific amendments, including restoring certain provisions such as protections for postage-related services for people with disabilities (a change that had been highlighted by accessibility advocates).
Beyond those technical changes, there was also broader discussion around certain elements of the bill. In particular, some MPs and commentators raised concerns about proposed regulatory powers included in the omnibus legislation, specifically provisions that would allow ministers to grant temporary exemptions from certain federal laws in limited circumstances. Critics argued that these powers were too broad and lacked sufficient safeguards.
While these concerns relate to divisions of the bill outside of tax and SR&ED, they contributed to heightened scrutiny at committee stage and prompted amendments aimed at adding additional guardrails and oversight mechanisms.
Importantly, none of these debates have altered the core proposed SR&ED enhancements but they do illustrate the level of attention the broader bill has received.
What Happens Next?
The bill now proceeds to:
- Report Stage (House consideration of committee amendments)
- Third Reading (final debate and vote in the House)
If passed, it will move to the Senate for review. Once both chambers approve the legislation, it will receive Royal Assent and become law.
Importantly, MPs agreed earlier this month to a motion seeking to fast-track the bill through the committee and report stages of debate. That motion required Bill C-15 to be considered at the Finance Committee by Monday, with the committee reporting back to the House by Wednesday, which it did on February 24.
However, at this stage, it is not yet clear when the final vote at third reading will take place.
Why This Matters for Businesses
While the proposed SR&ED enhancements are progressing, they are not yet enacted. Until Royal Assent is granted, the changes remain legislative proposals.
That said, completion of committee review signals strong forward momentum. Businesses considering how these enhancements could impact their 2025 or 2026 SR&ED claims should continue monitoring the timeline and begin planning accordingly.
We’ll provide further updates as the bill advances through report stage, third reading, and Senate review.
If you’d like to discuss how the proposed SR&ED changes may affect your filing strategy or eligibility profile, feel free to reach out.
