This policy brief outlines key sections of the One Big Beautiful Bill Act (OBBBA) that could affect Canada's economic position. It also offers recommendations on how Canada should respond as the United States intensifies efforts to attract capital, research and development, and industrial activity through aggressive tax policy.
With the Act now in place, it marks a turning point in the U.S. tax policy while also raising an urgent conversation about how Canada can compete for investment and innovation-driven growth in this new landscape.
This brief follows a previously released brief analyzing a sweeping U.S. tax reform package that, at the time, included provisions with potentially significant implications for Canada’s investment climate, manufacturing base, and innovation economy.
As a response, the Board recommends the Federal Government consider the following policy levers:
1. Full expensing for capital investment
2. A domestic production reduction tax rate
3. More competitive business incentives for spending on R&D
4. A patent box regime
