The Sovereignty Score

The Government of Canada is expanding the SR&ED tax credit to better support R&D investment by Canadian companies, including by raising expenditure limits, restoring capital expenditure eligibility, and extending the enhanced credit to eligible Canadian public corporations.

The Government of Canada introduced a 3% Digital Services Tax on large tech companies’ Canadian revenues exceeding $20 million, before rescinding it in June 2025 as a concession to restart trade talks with the United States.

The Government of Canada, through the CRTC, is modernizing Canada’s broadcasting framework by requiring major online streaming services to contribute revenue to Canadian content funds and meet clearer Canadian content requirements.

The Defence Industrial Strategy lays out a strategy which is intended to both strengthen Canada’s national security and stimulate its economy.

The Government of Canada is establishing a $25 billion sovereign wealth fund designed to motivate private sector and retail investment in nation building projects that enhance Canada’s economic resilience.

The Canadian government is providing up to $1.4 billion through the Canadian Defence Industry Resilience Program to two companies, IMT Precision and General Dynamics Canada, to build domestic ammunition production capacity.

The Government of Canada’s Buy Canadian Policy is intended to “protect and prioritize Canadian workers and industries, and strengthen Canada’s domestic economy.” 

The Government of Canada is providing $240 million to Cohere through the Canadian Sovereign AI Compute Strategy to help the company purchase compute capacity from CoreWeave’s Canadian-located, American-owned data centre.

The federal government’s decision to loan $400 million to Algoma Steel is a good start, but improvements are needed to truly deliver on sovereignty and economic
transformation.

The Government of Canada is contributing $40 million to Nokia’s Ottawa R&D facility to support research in 5G, 6G, quantum computing, AI-RAN and digital connectivity.