Millions of Canadians could face significant changes to their financial planning as the federal government looks ahead to the 2026 expiry of eight key tax credits. These credits, introduced or expanded in recent years, were designed to offer targeted relief to groups ranging from seniors and students to parents and eco-conscious homeowners. Their looming expiration date has prompted concern, especially for those who came to rely on these incentives as part of their annual tax strategy. As 2026 approaches, taxpayers, accountants and policymakers alike are asking the same question: will these credits be extended — or will they disappear entirely?
In any economic climate, tax credits play a pivotal role in shaping household budgets. From boosting after-tax income to supporting specific goals like continuing education or home renovations, these refundable and non-refundable credits help balance the financial scales. As temporary measures, however, a number of these credits were enacted with built-in expiry dates — and 2026 was marked as the sunset year for several. The decision to renew or retire them could have lasting ripple effects across various sectors of Canadian society.
Overview of tax credits set to expire in 2026
| Tax Credit | Who It Affects | Expires |
|---|---|---|
| Multigenerational Home Renovation Tax Credit | Families building secondary suites for seniors or disabled adults | Dec 31, 2026 |
| First Home Savings Account (FHSA) Incentives | First-time homebuyers aged 18–40 | Dec 31, 2026 |
| New Canada Workers Benefit (CWB) Advance Payments | Low-income workers and families | Dec 2026 |
| Canada Training Credit | Adults 25–65 pursuing eligible training courses | Dec 31, 2026 |
| Home Accessibility Tax Credit (expanded version) | Adults 65+, persons with disabilities | Dec 2026 |
| Clean Technology Manufacturing Investment Tax Credit | Green energy companies and tech firms | Dec 2026 |
| Clean Electricity Investment Credit | Utilities and provinces investing in green projects | Dec 31, 2026 |
| Digital news subscription tax credit | Canadian taxpayers subscribing to qualified news outlets | Dec 31, 2026 |
Who qualifies and why it matters
Each of the eight tax credits is aimed at a specific demographic. Some, like the Canada Workers Benefit (CWB), provide direct relief to low-income workers, making the prospect of steady employment more sustainable in a high-cost economy. Others, like the First Home Savings Account incentives, target young adults struggling to break into the housing market.
For instance, the Canada Training Credit is a powerful tool for mid-career professionals hoping to upskill or re-enter the workforce. If it expires without replacement, older workers could find retraining significantly more expensive. Similarly, the Multigenerational Home Renovation Tax Credit supports families investing in a secondary suite for aging parents or disabled family members — a growing need in light of Canada’s aging population.
“These targeted tax credits are part of the federal government’s strategy to address affordability, care gaps, and accessible housing. Letting them lapse would remove critical support from vulnerable populations.”
— Janice E., Tax Policy Analyst
Implications for those who rely on these credits
If these tax credits are allowed to expire as scheduled, the direct impact could be substantial. For example, the expanded Home Accessibility Tax Credit currently offers up to $3,000 in credits for eligible renovations — double the previous limit. For Canadians aging in place, this can offset costs for wheelchair ramps, bathroom modifications, and stair lifts.
Meanwhile, clean energy firms were set to benefit from the Clean Technology and Clean Electricity Investment Credits, supporting solar, wind, hydro, and nuclear projects. Removing these incentives may cool investment at a time when the climate crisis and energy transition demand acceleration.
| Group | Impact |
|---|---|
| Winners (If Credits Are Extended) | Homebuyers, low-income workers, eco-investors, seniors, digital publishers |
| Losers (If Credits Expire) | Mid-career learners, aging families, clean energy investors, disabled Canadians |
What changed this year
Although these tax credits haven’t been eliminated yet, the federal government has not committed to their renewal. Budget deliberations for 2024 and 2025 will be key in determining whether these credits will continue beyond their sunset dates.
The budget 2023 and early draft outlines for 2024 have shown growing attention to affordability measures, climate investments and housing supply. Yet, there’s also pressure to reduce spending, which might leave some tax credit programs vulnerable to cuts.
“We are in a tightening fiscal environment, so every credit will need to demonstrate its return on public investment.”
— Richard M., Government Finance Advisor
How to prepare if a credit you use is ending
Taxpayers who have used or plan to use these credits should act before 2026 where possible. For example, those eligible for the Multigenerational Home Renovation Credit should consider scheduling renovations before the funding window closes. Similarly, students interested in training eligible for the Canada Training Credit should enroll sooner rather than later.
It’s also smart to review personal or family financial plans with a professional accountant or tax adviser to identify how expiring credits might impact you. Taking early steps could mean capturing years’ worth of tax value before the rules change.
Political context and what’s next
Calls to make several of these tax credits permanent are gaining momentum. Stakeholders in healthcare, construction, clean energy, and digital media have all petitioned the federal government to provide clarity and security by codifying these credits into long-term policy.
Some premiers and provincial finance ministers, especially in provinces investing in green energy, have publicly urged the federal government to extend the Clean Electricity Investment Credit beyond 2026. Homebuilders and aging care advocates have voiced similar sentiments regarding the renovation and home accessibility credits.
“Predictability allows for private sector funding, long-term planning, and economic stability. We can’t keep making decisions two years at a time.”
— Danielle R., Public Policy Strategist
FAQs about expiring Canadian tax credits in 2026
How do I know if I’m eligible for one of these credits?
Eligibility varies by credit, but most are tied to income levels, age, homeownership status, or specific activities such as training or home renovation. Check the criteria on each credit carefully or consult a tax professional.
Can I still claim a credit if I qualify before 2026?
Yes, most credits can be claimed for any qualifying expense made before the expiration date. For best results, ensure all documentation is thorough and expenditures are completed before the end of 2026.
Will these tax credits be renewed after 2026?
No decisions have been made yet. The federal government may choose to extend, modify, or discontinue these credits. Watch upcoming budgets for announcements.
How do these credits affect my income tax return?
They reduce the amount of tax you owe or increase your refund. Some are refundable, meaning they provide a benefit even if you owe no tax; others are non-refundable and reduce your tax liability only.
Should I make financial decisions based on these expiring credits?
While it’s wise to take advantage of existing credits, do not rely solely on them for long-term planning. Always consult with a financial advisor when making major decisions based on policy incentives.
What’s the biggest risk if these credits are not extended?
The biggest risk is a sudden loss of affordability or access — whether that’s in education, housing, elder care or clean innovation — for people who have come to depend on them.