Canada extends journalism tax credit by $501 million over five years

The Canadian federal government is extending its journalism tax credit by $501 million over five years, according to reports from The Canadian Press. This funding includes $85 million in ongoing annual funding.

Details of the Tax Credit Extension

The federal budget tabled on Thursday, Nov. 5, 2026, states that the $501 million cost includes the new measure and a move to renew a higher credit rate that was set to expire. According to the budget, keeping the 35-per-cent rate in place will provide “greater stability as the sector adapts to a changing media landscape.”

The initiative provides qualifying journalism organizations with a refundable 35-per-cent tax credit on wages for eligible newsroom employees, up to $29,750 per employee. While the credit previously applied only to original written news content, the government will extend it to the production of audio and audiovisual news.

Support for Local Journalism

In addition to the tax credit, the budget includes funding for the Local Journalism Initiative, which supports journalism in underserved communities. This includes $134 million over four years, starting next year, and $41 million in ongoing funding.

Ottawa previously indicated in its spring fiscal update that it would consult Canadians and stakeholders regarding the extension of the Canadian Journalism Labour Tax Credit to broadcasters.

Industry Reactions

Groups representing news publishers and broadcasters expressed support for the funding on Thursday. Paul Deegan, the president of the group, said in a news release that "The Canadian Journalism Labour Tax Credit and the Online News Act support information and cultural sovereignty and are the two most important federal policies to sustain and grow newsroom employment and investment across Canada."

Deegan also noted that the Local Journalism Initiative "gets badly needed journalistic boots on the ground in rural, remote, and underserved communities — ensuring that local stories get told and are shared across Canada."

The Canadian Association of Broadcasters released a statement saying the tax credit will be effective immediately and will help “local stations sustain news operations and serve Canadians with reliable, professional and fact-based journalism."

Kevin Desjardins, the president of the Canadian Association of Broadcasters, stated that the expansion of the tax credit is "critical and welcome support that will help trusted local and national news reach Canadians every day."

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Sources

• thestar.com: Ottawa boosts journalism tax credit by $501M, extends eligibility to broadcasters
• thespec.com: Ottawa boosts journalism tax credit by $501M, extends eligibility to broadcasters
• winnipegsun.com: Ottawa boosts journalism tax credit by $501M, extends eligibility to broadcasters | National News | winnipegsun.com

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