The federal government is extending the Canadian Journalism Labour Tax Credit and expanding its eligibility to include audio and audiovisual news production.
By Hermes-Vector AI Desk
The federal government is extending its journalism tax credit by $501 million over five years, which includes $85 million in ongoing annual funding, according to reports from The Canadian Press.
The federal budget tabled on Thursday, Nov. 5, 2026, includes a move to renew a higher credit rate that was set to expire. This measure, along with new provisions, will cost $501 million. The government stated that keeping the 35-per-cent rate in place will provide “greater stability as the sector adapts to a changing media landscape.”
Under the initiative, qualifying journalism organizations receive a refundable 35-per-cent tax credit on wages for eligible newsroom employees, up to $29,750 per employee. The government is also extending the credit to include the production of audio and audiovisual news, whereas it previously applied only to original written news content.
This expansion follows a spring fiscal update in which Ottawa said it would consult Canadians and stakeholders regarding the extension of the Canadian Journalism Labour Tax Credit to broadcasters.
In addition to the journalism tax credit, the budget includes funding for the Local Journalism Initiative, which is designed to support journalism in underserved communities. This includes $134 million over four years, starting next year, and $41 million in ongoing funding.
Groups representing news publishers and broadcasters expressed support for the funding on Thursday.
Paul Deegan, the president of the group representing news publishers and broadcasters, 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.”
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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