Employee Ownership Canada Applauds Government of Canada Decision to Make Employee Ownership Tax Incentive Permanent
April 28, 2026
Employee Ownership Canada commends the federal government for making the $10-million capital gains exemption for Employee Ownership Trusts (EOTs) permanent. We thank Prime Minister Carney and Minister Champagne for their leadership and commitment to strengthening Canada’s business community and domestic economy.
This is a decision that will be felt by owners, workers, and communities right across the country. With permanence, owners can now plan with confidence, engage the right advisors, and choose a succession path rooted in their values rather than a deadline. Canada can now reap the benefits seen in peer economies like the U.K. and the U.S., where permanent policy support has allowed employee ownership to flourish.
The stakes for Canada are enormous, and today’s decision reflects that. Over $2-trillion in small business assets will change hands in the coming decade. With employee ownership now permanently supported, more businesses can transition into Canadian hands retaining jobs in local communities, and preserving the wealth and roots that took generations to build. EOTs join a suite of employee ownership models that EOC has long championed. With this decision, EOTs become more accessible to the business owners who need it most, with real benefits for the workers and communities on the other side of every transition.
“This is a defining moment for employee ownership in Canada,” said Chad Friesen, Board Member, Employee Ownership Canada & CEO, Friesens Corporation. “For the first time, business owners can plan an EOT transition with complete certainty, and the workers and communities on the other side of those decisions will be better for it. One day, workers across this country will look back at this as the reason they became co-owners of the businesses they helped build.”
The legislation is in place. The incentive is permanent. Now it is time to build.
About Employee Ownership Canada
Employee Ownership Canada is a national non-profit organization dedicated to advancing employee ownership across the country. Through education, advocacy, and research, EOC works to help business owners, employees, advisors, and policymakers understand and adopt employee ownership models.
Learn more: www.employee-ownership.ca
-30-
Contact
Sharlyn Carrington, Employee Ownership Canada Communications, sharlyn@contentstrong.ca