Canada is at a turning point. Heightened geopolitical conflict and economic uncertainty are reshaping trade flows, investment decisions and supply chains. At the same time, Canada has what the world needs, from energy and critical minerals to agricultural products, and advanced technologies, supported by trade agreements that provide access to markets beyond North America.  

The challenge is ensuring Canadian businesses can compete and succeed in those markets. Domestic demand alone is not enough to support long-term growth. Budget 2026 should focus on strengthening Canada’s competitiveness by investing in trade-enabling infrastructure, reducing barriers to doing business across the country and creating an investment environment that gives businesses the confidence to expand, build and invest in Canada.  

There has been meaningful progress since Budget 2025. The federal government has advanced measures to support projects of national interest, maintained important investment tax credit frameworks and announced regulatory reforms intended to accelerate major project development and improve investment certainty. Efforts to strengthen internal trade and labour mobility, alongside the Building Canada Strong initiatives, are also positive steps toward a more resilient Canadian economy.  

The priority now is execution. Promised supports must reach businesses and projects when they are needed, regulatory reforms must translate into faster and more predictable approvals, and Canada must continue removing the barriers that inhibit businesses from scaling and investing. At a time of heightened geopolitical and economic uncertainty, Canada must respond by removing barriers to building, producing and trading. 

As outlined in the Calgary Chamber’s recent report, Power Plays: Geopolitics and the New Business Landscape, Canadian businesses are central to both economic resilience and global participation. Canada has an opportunity to use its natural resources, skilled workforce, infrastructure and global relationships to strengthen its position as a reliable supplier and trading partner. Realizing that opportunity will require coordinated, strategic and timely action. 

Our recommendations focus on six key priorities: 

• Eliminating regulatory barriers 

• Tax competitiveness 

• Investing in trade-enabling infrastructure 

• Enabling entrepreneurs to thrive in a global economy 

• Addressing workforce challenges through talent development and attraction 

• Strengthening communities to support resilience and well-being 

 

These recommendations provide a clear path forward to support workers, ease cost pressures on businesses and drive sustainable economic growth. We look forward to working with you to ensure that Budget 2026 reflects the urgent needs and the immense potential of Canadian businesses.   

Thank you in advance for your consideration. If you are interested in discussing our recommendations further, please contact Ruhee Ismail-Teja, Vice President, Policy & External Affairs at [email protected].

 

Calgary Chamber of Commerce 2026 Pre-Budget Submission 

While several key investments were advanced in the previous year, the Calgary Chamber continues to advocate for important initiatives to support the business community and its workforce. 

 

ELIMINATING REGULATORY BARRIERS  

Private capital needs regulatory certainty, policy durability and firm timelines. Canada has made important commitments to improving regulatory efficiency, streamlining approvals and advancing projects of national interest. Recent federal proposals to establish clearer timelines and a “one project, one review” framework are encouraging steps toward improving competitiveness. The Calgary Chamber is particularly encouraged by the commitment to complete project reviews and decisions within one year, alongside efforts to coordinate impact assessments and permitting processes.  

Canada needs to simplify regulatory processes and accelerate permitting and approvals, in a period of heightened trade uncertainty, Canada cannot afford to make investment unnecessarily difficult when businesses have other jurisdictions competing for their capital. 

 Recommendations 

1. Expand the “one project, one approval” framework to all major projects and establish a coordinated federal approvals process across departments. Recognize provincial assessments and approvals wherever they meet federal requirements to reduce duplication, accelerate project timelines and improve investment certainty. 
2. Complete the outstanding Canada-Alberta MOU commitments, including the fiscal and regulatory agreements required to advance the emission reduction projects, including the Pathways Project. Delivering these agreements on the committed timeline will provide investors with the certainty needed to proceed, while ensuring Canada’s climate policy remains competitive with other jurisdictions. 
3. Implement a coordinated Crown Consultation Hub for major projects to reduce duplication and consultation fatigue while maintaining meaningful, project-specific engagement with Indigenous communities. 

 

TAX COMPETITITVENESS 

Canada needs a competitive and predictable tax framework to attract private investment and encourage businesses to invest and scale. Capital flows to where it can achieve the best return, with minimum friction. As businesses consider where to risk capital, Canada is evaluated against jurisdictions with equally – or greater – competitive tax and investment environments. Recent federal measures to encourage capital investment are positive steps but businesses need greater certainty that tax measures and investment incentives will remain competitive predictable and timely. 

1. Expedite the payment of approved investment tax credits and other committed investment incentives. Once funding has been approved, businesses need certainty that the committed funds will be delivered within a predictable timeframe. Delays can undermine project economics and put Canadian investments at risk as businesses compete for capital in a global market where investors can leave and invest elsewhere. 
2. Implement commitments previously announced to support business investment and economic growth, including the proposed flow-through share measures to support access to capital for start-ups. Providing certainty by ensuring announced measures are delivered as promised and on a predictable timeline gives businesses the certainty they need to plan. 
3. Make Canada’s investment climate more competitive by building on recent measures to accelerate capital investment and making enhanced capital cost allowances and immediate expensing. This would support the recycling and reinvestment of capital by Canadian companies, contributing to their growth and strengthening Canada’s competitiveness relative to the United States. 
4. Create incentives to attract private investment in Canadian start-ups and scale-ups. Introduce a federal angel investment tax credit for investors in qualifying Canadian start-ups and early-stage businesses and expand flow-through shares to include innovative sectors such as artificial intelligence, quantum computing, biotechnology and advanced manufacturing. These measures would help mobilize private capital for Canadian companies developing innovative technologies and scaling in Canada. 
5. Reduce the administrative burden and improve predictability in federal tax administration. The federal government should require clear, timely and consistent CRA guidance on new tax measures, provide adequate notice and transition periods before implementation, and establish service standards that measure both timeliness and accuracy of CRA responses to businesses. 
6. Review the federal small business tax threshold to support growth and reinvestment. A review of the $500,000 small business tax threshold is needed to ensure it continues to support business growth, productivity investment and maintaining capital for a business to scale. Consider increasing and indexing the threshold to inflation so that the small business tax framework does not become a disincentive to growth as operating costs and business revenues increase. 
7. Revise the Excessive Interest and Financing Expense Limitation (EIFEL) rules to support investment in capital-intensive infrastructure. Capital-intensive infrastructure often requires, long-term debt financing.  Federal tax rules should not increase the cost of capital or discourage investment in infrastructure Canada needs. 

 

INVESTING IN TRADE-ENABLING INFRASTRUCTURE  

Federal investment should maintain a strong focus on the infrastructure needed to move Canadian goods and energy to market. Recent federal commitments to establish economic zones and accelerate nationally significant infrastructure projects are positive signals that governments recognize the importance of trade-enabling infrastructure to Canada’s long-term competitiveness and economic security.  

Trade-enabling infrastructure is also critical to the success of Buy Canadian and Canada’s defence industrial strategy. Increasing domestic procurement and expanding Canadian defence production will require businesses to scale production, strengthen regional supply chains and reliably move goods and inputs across the country. Federal infrastructure programs should therefore prioritize projects that increase trade and export capacity, connect Western Canadian producers to domestic and international markets, and enable Canadian businesses to respond to growing domestic and global demand. 

Recommendations  

1. Leverage the Canada Strong Fund to finance nationally significant trade-enabling infrastructure that strengthens supply chains and diversifies Canada’s access to global markets. Such as, commercially viable projects that expand transportation capacity, connect Canadian producers to international markets and strengthen Canada’s reputation as a reliable trading partner. 
2. Prioritize marine, air and inland trade infrastructure to diversify export corridors. Expanding these connections would give businesses more options to reach global markets, reduce reliance on traditional trade routes and strengthen Canada’s supply-chain resilience. 
3. Implement the National Supply Chain Strategy with clear timelines and funding commitments. The federal government should establish clear priorities for addressing transportation bottlenecks, improving end-to-end supply-chain visibility, coordinating investments across jurisdictions and strengthening Canada’s trade corridors. The strategy should include measurable targets for supply-chain fluidity, reliability, capacity and resilience, with regular public reporting on progress.  
4. Close remaining connectivity gaps along rural, remote and northern transportation corridors. While connectivity has improved, gaps remain, particularly along rural and remote transportation corridors. Reliable cellular coverage is essential for road transportation, emergency response and public safety, as well as enabling businesses and communities to participate fully in the digital economy. 

 

ENABLING ENTREPRENEURS TO THRIVE IN A GLOBAL ECONOMY 

Despite a growing population, there are 100,000 fewer entrepreneurs in Canda than two decades ago. Rising costs, access to capital and lagging technology adoption are stifling growth, particularly among small and medium-sized businesses that make up over 99 per cent of Canada’s business community. To reverse this trend Canada needs more businesses to start, scale and invest. Government can support this by reducing administrative friction, improving access to capital and accelerating technology adoption. Supporting entrepreneurs is essential to productivity, innovation and economic growth. 

Recommendations 

1. Reduce administrative burden and improve access to federal funding and financing programs. The federal government should make funding opportunities easier for businesses and organizations to find, understand and access by improving coordination and communication across departments and agencies, using common eligibility and application requirements where possible, and providing clearer, centralized information on available programs. Federal funding should be designed to minimize unnecessary application and reporting requirements and provide greater predictability for applicants.
2. Promote AI adoption and digitization, especially for SMEs. Provide clear timelines for the “AI for All” strategy announced earlier this year to give businesses support in AI utilization. Also, work with industry to develop practical on ramps for small businesses to integrate process optimization and greater digitization to drive productivity gains and ensure Canadian businesses remain competitive.    

 

ADDRESSING WORKFORCE CHALLENGES THROUGH TALENT DEVELOPMENT AND ATTRACTION 

Despite having one of the most well-educated populations in the OECD, Canada continues to face persistent gaps between available talent and labour market demand, particularly in sectors critical to infrastructure development, housing, energy, construction and advanced technologies. Th Calgary Chamber is encouraged by the commitments made by government to address the shortage. However, Canada’s unemployment rate remains elevated at 6.4 per cent, alongside unfilled jobs. This demonstrates that the problem is not simply the number of workers; it is a mismatch between workers’ skills and employer demand.  

To strengthen competitiveness, Canada must ensure its workforce development, immigration and credential recognition systems are aligned with economic priorities. Governments and industry must continue to work collaboratively to improve labour mobility, accelerate workforce participation and ensure businesses have access to the skilled workers needed to deliver projects, drive innovation and support economic growth. 

Recommendations: 

1. Strengthen Canada’s ability to attract and retain world-class research talent and accelerate the commercialization of Canadian research through targeted federal investments in strategic areas such as artificial intelligence, quantum technologies, health and life sciences, and advanced technologies. 
2. Ensure federal work-integrated learning programs continue to evolve with changing labour-market conditions, including supporting flexible, employer-led projects and paid opportunities that give students and recent graduates practical experience with emerging technologies. 
3. Maintain federal support for foreign credential recognition by working with provinces, territories and regulatory bodies to streamline assessment and licensing pathways for internationally trained workers in high-demand occupations. 
4. Provide greater funding certainty for settlement agencies so communities can maintain the language, employment and integration supports newcomers need to participate fully in the economy. Funding models should account for regional settlement patterns and the continued demand for services as newcomers move within Canada. 

 

STRENGTHENING OUR COMMUNITIES TO SUPPORT RESILIENCE AND WELL-BEING 

Businesses need communities that can accommodate population growth, attract talent and show resilience. The Calgary Chamber is encouraged by recent federal investments through the Canada Builds Communities Strong Fund to support housing-enabling and community infrastructure. However, gaps remain in delivery, coordination and scale. Aging infrastructure, lengthy permitting timelines, rising construction costs and increasing pressure on municipal services continue to constrain growth and reduce quality of life. 

Furthermore, nearly half of small business owners (49 per cent) report being worried about the safety of themselves, their employees and their customers, up five per cent from 2024 and more than double the rate from 2023; targeted support is needed to improve community safety. Addressing these challenges will require coordinated action across all orders of government to ensure communities have the infrastructure, services and resilience needed to support population growth, and overall well-being and safety. 

Recommendations: 

1. Accelerate housing supply and improve access to affordable housing through targeted investments in housing-enabling infrastructure, streamlined approvals and greater certainty in federal housing programs. Ensure funding supports the full range of housing needs, including affordable housing for people experiencing homelessness and households reliant on government income supports, while reducing regulatory and administrative barriers that increase development costs. 
2. Strengthen the capacity of charitable and community organizations to support communities by reducing administrative barriers and improving the predictability and flexibility of federal funding, including greater recognition of the full funding stack required to deliver essential community services. 
3. Strengthen federal support for urban infrastructure renewal and growth.  Existing programs while appreciated are fragmented and project specific. Provide predictable, long-term federal infrastructure funding to help rapidly growing communities address aging infrastructure and the infrastructure needs associated with economic and population growth.  
4. Continue to invest in transportation and connectivity infrastructure, including public transit, airport access and regional transportation links, to improve mobility, strengthen tourism and support regional economic growth. This includes continued support for projects such as the Green Line LRT. 
5. Ensure the Build Communities Strong Fund supports sustained investment in disaster mitigation and climate-resilient infrastructure, including projects that protect critical infrastructure and economic assets from flooding, wildfire and extreme weather.