What Is Bill C-30?
Passed on June 19, 2026, Bill C-30 implements measures from Canada’s Spring Economic Update to help reduce costs and support business competitiveness. (canada.ca)
Key entity-related changes include:
- Permanent capital gains exemption of $10 million for qualifying business transfers to Employee Ownership Trusts (EOTs) and worker co-ops. (canada.ca)
- Immediate expensing for greenhouses to fuel agricultural production. (canada.ca)
- Lowering the minimum distance for the Labour Mobility Deduction (from 150 km to 120 km) and increasing the maximum deduction from $4,000 to $10,000/year. (canada.ca)
What Entity Forms Are Affected
- Cooperatives and employee-owned businesses: The permanent exemption for transfers to EOTs/cop-ops enables smoother succession planning and ownership transition.
- Agricultural setups with greenhouses: Immediate expensing enhances cash flow early in operations.
- Corporations with traveling workers: Improved mobility deduction helps entities with remote job sites or specialized labour movement.
Example: Farmer Startup with Greenhouse Model
Sam wants to set up an agricultural operation including a greenhouse for year-round production. Under Bill C-30:
- He can expense greenhouse and associated building costs immediately, lowering taxable income in the early years.
- If eventually transferred to an employee ownership trust, qualifying shares could fall under the $10 million capital gains exemption—useful for planning exit or succession.
Entity Setup Checklist
- Choose entity form (corporation, cooperative, EOT) with tax treatment in mind.
- Document asset purchases early to ensure eligibility for immediate expensing.
- Maintain records showing distance and travel for labour mobility to claim expanded deductions.
- Work with a tax professional to ensure asset transfers to EOTs or co-ops meet qualifying criteria.
Potential Challenges and Considerations
- Definitions and eligibility vary; rules for what counts as a qualifying business transfer or employee ownership trust can be technical.
- Provincial tax rules may differ from federal; ensure entity setup aligns both federally and provincially.
- Timing of incorporation or elections matters if claiming capital cost recovery or tax credits.
Final Thoughts
Bill C-30 introduces meaningful incentives for businesses seeking to optimize entity structure, succession planning, and capital deployment—especially under modern models like worker co-ops and employee ownership. Smart entity setup aligned with these changes can unlock substantial benefits.