Canada’s government proposes bringing qualifying private audio and audiovisual news organizations into its journalism tax credit and keeping the 35% rate, at an estimated five-year federal cost of C$501 million.
The Canadian Journalism Labour Tax Credit was introduced in 2019 and currently supports qualifying organizations that produce original written news. Broadcasters and organizations producing only audio or audiovisual news cannot claim the credit under current rules.
Budget 2026 estimates the combined expansion and rate extension will reduce federal revenues by C$16 million in fiscal 2026-27, C$150 million in 2027-28, C$170 million in 2028-29, C$85 million in 2029-30 and C$80 million in 2030-31. It projects ongoing annual costs of C$85 million.
Under the credit, organizations may claim a refundable amount equal to 35% of eligible labour expenses, capped at C$85,000 per employee in each tax year. That produces a maximum credit of C$29,750 for each eligible employee. The 35% rate and C$85,000 expense cap were introduced as temporary enhancements.
For the proposed expansion, an organization would need to qualify as a qualified Canadian journalism organization and meet the Canadian ownership requirements attached to the credit. An employee would have to spend at least 75% of work time producing or post-producing original news. Existing employee tests would also generally require that person to work an average of at least 26 hours a week and remain employed for at least 40 consecutive weeks in a tax year.
The enhanced rate had been due to return to 25% on Jan. 1, 2027. Budget 2026 proposes continuing the higher rate through Dec. 31, 2028, for qualifying written-news organizations and the newly covered audio and audiovisual organizations. The federal government said the extension is intended to provide “greater stability” as media conditions change.
The proposed audio and audiovisual eligibility would begin with qualifying labour expenses incurred on or after Nov. 5, 2026, the day the budget was presented. The budget does not provide a date for a parliamentary vote on the proposals.
