“We’re pleased that concerns we’ve advocated on behalf of Ajax-Pickering Board of Trade members were part of the just announced provincial budget, including a tax cut for small businesses, increased health care and post-secondary education funding, affordable housing measures, and transit relief,” said Mil Patel, President of Ajax-Pickering Board of Trade.
The budget proposes to strengthen the economy, businesses, and day-to-day life in our province while managing provincial finances responsibly during unprecedented turbulent times. We applaud the work of Peter Bethlenfalvy, Minister of Finance and Pickering-Uxbridge MPP. We encourage him to take even greater steps as soon as possible to further strengthen our business community and our community as a whole.
TAX CUT FOR SMALL BUSINESSES
The budget cuts small business corporate income tax by 30%, dropping the current tax rate of 3.2% to 2.2%, effective July 1. Eligible businesses cand save up to $5,000 per year.
The budget also promises to lower the cost of capital investments by allowing immediate 100% write-offs on a range of expenditures, including research and development, as well as manufacturing machinery and buildings. Businesses will also be able to accelerate the income tax deduction for the cost of depreciable assets.
NEW INVESTMENT FUND
The province will invest up to $4 billion in its Protect Ontario Account Investment Fund, to attract investment from pension funds and other private capital. It replaces the Protect Ontario fund, which was intended to give money directly to businesses affected by tariffs.
RESEARCH AND INNOVATION FUNDS
A host of new investments for developing artificial intelligence and quantum technologies, along with research into life sciences and the agri-food sector were announced. For example, it allocates $107 million over three years to accelerate the development of critical technologies, including AI, quantum technologies, robotics and defence manufacturing. It also earmarks $24 million over three years for a fund that supports enterprises in the life sciences sector, including medical isotopes.
A $40 million Trade-Impacted Communities Program, has been launched to offer economic support for projects that promote economic resiliency, increase export and investment opportunities. Municipalities, development organizations, business accelerators and industry associations will be eligible to apply for the funding.
In addition, the budget includes a $107 million investment over three years starting in 2026 to support its Critical Technologies Initiatives program which the province says will help accelerate the development, commercialization and adoption of critical technologies in key sectors, including agriculture, manufacturing, mining, defence, automotive, and more. This program will also support AI infrastructure and help create opportunities for businesses and increase productivity.
HEALTH CARE FUNDING
The budget allocates over $1.1 billion in new hospital funding for high quality care and improved access to treatments.
The province also plans to spend $1.1 billion over three years to expand home and community health-care services provided by nurses, personal support workers and therapists.
As Ontario continues to face a shortage of family doctors, the province is expanding its Primary Care Action Plan to $3.4 billion between 2025 and 2029, aiming to connect “everyone in Ontario” with family doctors and primary care providers.
Over the next 10 years, the province says it will invest about $64 billion into health infrastructure, including a plan to support 50 hospital projects and deliver 3,000 new beds to enhance healthcare access. This includes advancing work on Lakeridge Health’s Bowmanville Hospital redevelopment which will more than double the hospital’s capacity by adding up to 32 new beds and expanding inpatient and ambulatory care services and the emergency department.
HOUSING
Announced ahead of the budget, the government plans to temporarily expand Harmonized Sales Tax (HST) rebates on the purchase of new homes. From April 1 to March 31, the full 13% Tax (HST) for all new homebuyers, with the support of the federal government.
The budget also includes a $300 million investment to the Building Ontario Fund, in partnership with private developer High Art Capital that will support the conversion of 2,200 condo units into long-term housing in the Greater Toronto Area. According to the Province, about 550 of these units will have their rents set at 25% below the market value or lower than 30% of the median household income.
In addition, the province says it’s working with federal and municipal governments to reduce development fees to boost constructions and make housing more affordable.
BUILDING POSTSECONDARY EDUCATION
The government is investing $6.4 billion in post-secondary education over the next 10 years, including over $2.2 billion in capital grants to help colleges, universities and Indigenous Institutes make critical repairs, improve energy efficiency and modernize facilities by upgrading technology.
TRANSIT
As previously announced, the Ontario One Fare will be extended for an additional two years. This initiative allows transit riders to pay only one fare when connecting to and from Durham Region Transit, GO Transit, the TTC, Brampton Transit, MiWay, and York Region Transit.
You can read the full provincial budget at: 2026 Ontario Budget | A Plan to Protect Ontario.
