Ottawa announced several targeted measures in its spring economic statement that span labour market programs, pension contribution rates, housing finance rules, and tax incentives for low-carbon energy technologies.
Skilled trades recruitment and training
The government said it will launch a nationwide effort to recruit, train and hire between 80,000 and 100,000 new skilled trade workers by fiscal year 2030/31. The initiative will begin with an initial investment of C$2 billion spread over five years. Separately, once individuals are enrolled in training programs, the government is proposing an additional C$3.4 billion in grants over five years intended to support people through course completion.
Canada Pension Plan contribution change
The base contribution rate for the Canada Pension Plan (CPP) will be reduced from 9.9% to 9.5%, with the change taking effect on January 1, 2027. The statement quantifies the impact for a typical worker: an employee earning C$70,000 annually would see roughly C$133 in annual savings, and employers would receive an equivalent reduction in their contribution costs.
Mortgage insurance rule adjustments
The federal government will amend mortgage insurance rules in two ways. First, private mortgage insurers will be permitted to offer multi-unit mortgage loan insurance on residential properties that contain five to eight units. Second, the rules will be altered to increase flexibilities for mortgage insurers to provide products to borrowers constructing new three- and four-unit housing.
Carbon capture and enhanced oil recovery
Investment tax credits for carbon capture, utilization and storage (CCUS) will be extended to include enhanced oil recovery. The proposed credit rates are 30% for direct air capture equipment, 25% for other capture equipment, and 18.75% for equipment related to transportation, storage or use.
Low-carbon LNG capital cost allowances
The statement also introduces accelerated capital cost allowance (CCA) rates for low-carbon LNG facilities. To qualify, a facility’s on-site liquefaction activities must have an expected emissions intensity of no more than 0.20 tonnes of carbon dioxide equivalent per tonne of LNG produced. The accelerated CCA rates described are 50% for liquefaction equipment and 10% for non-residential facility buildings.
The measures combine direct spending, tax incentives and regulatory adjustments across multiple sectors - notably workforce development, pensions, housing finance, and energy - while outlining specific eligibility thresholds and percentage rates for tax credits and allowances.