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

Toronto, November 6, 2025

We share the disappointment felt across Canada’s business and advisory community that Budget 2025 did not make the $10 million capital gains exemption for sales through Employee Ownership Trusts (EOTs) a permanent feature of Canada’s tax system. The current incentive, passed only in 2024 with an expiry set for December 2026, means that the business community has not had adequate time to act.

This decision creates uncertainty for many business owners and advisors preparing for ownership transitions that often take more than a year to complete. The exemption was designed to make it easier for business owners to sell through an EOT, keeping jobs, ownership, and prosperity rooted in local communities. Without it, some owners may delay or reconsider transition plans, slowing the broader shift toward employee ownership.

Even so, there is reason for optimism. The August 2025 legislative updates, continued cross-party support, and strong engagement from business owners, employees, and advisors all point to growing recognition of the value EOTs bring to Canada’s economy. 

We remain committed to working with government and partners across the ecosystem to make the capital gains exemption permanent, ensuring employee ownership trusts remain a viable, long-term option for Canadian businesses.

Employee ownership is more than a policy. It is a pathway to shared prosperity, inclusive growth, and resilient local economies. We’ve seen how this model can preserve legacies, empower employees as co-owners, and strengthen communities. In the United Kingdom, where EOTs have been supported through permanent tax incentives, a business is sold to an EOT every day. 

As we look ahead, we call on our members, partners, and champions to continue advocating, educating, and building awareness to demonstrate why expanding employee ownership is not just good for business, but essential for Canada’s economic future.

-30-

We share the disappointment felt across Canada’s business and advisory community that Budget 2025 did not make the $10 million capital gains exemption for sales through Employee Ownership Trusts (EOTs) a permanent feature of Canada’s tax system. The current incentive, passed only in 2024 with an expiry set for December 2026, means that the business community has not had adequate time to act.

This decision creates uncertainty for many business owners and advisors preparing for ownership transitions that often take more than a year to complete. The exemption was designed to make it easier for business owners to sell through an
EOT, keeping jobs, ownership, and prosperity rooted in local communities. Without it, some owners may delay or reconsider transition plans, slowing the broader shift toward employee ownership.

Even so, there is reason for optimism. The August 2025 legislative updates, continued cross-party support, and strong engagement from business owners, employees, and advisors all point to growing recognition of the value EOTs bring to Canada’s economy.

We remain committed to working with government and partners across the ecosystem to make the capital gains exemption permanent, ensuring employee ownership trusts remain a viable, long-term option for Canadian businesses.
Employee ownership is more than a policy. It is a pathway to shared prosperity, inclusive growth, and resilient local economies. We’ve seen how this model can preserve legacies, empower employees as co-owners, and strengthen communities. In the United Kingdom, where EOTs have been supported through permanent tax incentives, a business is sold to an EOT every day.

As we look ahead, we call on our members, partners, and champions to continue advocating, educating, and building awareness to demonstrate why expanding employee ownership is not just good for business, but essential for Canada’s
economic future.

To become an EOC member, sign up for our newsletter, or learn more about the benefits of Employee Ownership Trusts for Canada’s economy, visit www.employee-ownership.ca.