# Budget 2026 for tech: a startup tax break, $0 fraud liability and 500 MW of AI computing

> Everything in the federal budget for tech, startups, AI, telecom and your bank account, with what it costs and when it takes effect.

- Published: 2026-11-05T22:36:00.000Z
- By: The Circuit Staff
- Type: News
- Topics: Policy, Budget 2026
- URL: https://thecircuit.ca/posts/2026-11-05-budget-2026-tech-measures/

Finance Minister François-Philippe Champagne tabled Budget 2026, titled "Masters of our destiny," on Thursday. He'd called it "a budget about entrepreneurs," and for tech that mostly held up: the biggest measures are tax breaks for startup founders and investors and a wider research credit. There's also a plan that would make banks cover fraud on your account. Here's what's in [the budget](https://budget.canada.ca/2026/report-rapport/pdf/budget-2026.pdf) for tech.

| Measure | What it does | Cost or status |
|---|---|---|
| Canada Growth Incentive | Tax exemption on up to $15 million in capital gains from successful investments in eligible Canadian companies, plus a bigger small business rollover | $715 million over four years, from 2027-28 |
| SR&ED expansion | Research tax credit covers some commercialisation costs: tests for regulatory approval or certification, and registering and keeping patents and other IP | $930 million over five years, then $235 million a year. Tax years starting on or after Nov. 5 |
| $0 fraud liability | Bank Act change capping consumers' liability at $0 for unauthorised access to their bank account, unless they were grossly negligent | Draft law to be consulted on; more details in 2027 |
| Anti-fraud framework | Banks, telecom companies and digital platforms would have to prevent, detect and respond to fraud. The CRTC could impose fraud rules on carriers | Draft law to be consulted on |
| Sovereign AI compute | Access to 500 MW of sovereign AI computing for Canadian AI companies, through backstops and offtake agreements | No dollar figure given |
| AI agents for students | Access to "trusted AI agents" for all university, college and CEGEP students | Details before the end of 2026 |
| Stablecoins | Banks would issue stablecoins through separately regulated subsidiaries; the Stablecoin Act would extend to foreign institutions | Intention announced |
| Telecom | Restates the competition roadmap: more spectrum for 5G and private networks, rural satellite support, the ban on activation and cancellation fees | No new money |

## For founders and investors

The Canada Growth Incentive is the headline. The government says a founder with a $15-million capital gain would keep nearly 96 per cent of it when they sell, compared with 71 per cent before this budget, and an early employee would see more upside in taking equity. Groups like the Council of Canadian Innovators had [asked for something like this](https://betakit.com/upcoming-federal-budget-will-be-all-about-entrepreneurs-finance-minister-hints/). It doesn't start until 2027-28.

The SR&ED change reaches past the lab: the budget notes that work beyond the experimental development stage has generally been excluded from the credit. Now some of the costs of getting a product approved and protected would qualify.

## For your bank account

The fraud plan is the change most Canadians would notice. The budget says the Canadian Anti-Fraud Centre recorded more than $704 million in losses in 2025, and estimates that's only 5 to 10 per cent of the real total. Under the plan, if someone gets into your bank account without authorisation and you weren't grossly negligent, the bank would have to cover the full loss. It isn't law yet: Ottawa will consult on draft legislation first.

## What wasn't there

We didn't find the small business tax rate cut that the Canadian Federation of Independent Business had asked for, and the budget doesn't add new money for telecom. The 500 MW AI computing promise comes without a dollar figure or timeline. [Our live coverage](https://thecircuit.ca/posts/2026-11-05-federal-budget-2026-live/) has the updates as they landed.

**Why it matters:** For startups, the Growth Incentive is aimed squarely at keeping founders and their money in Canada. For everyone else, the $0 fraud liability promise is the one to watch: it would put the cost of account fraud on banks instead of customers, but only once Parliament passes it.