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OTTAWA — The federal government is extending its journalism tax credit by $501 million over five years, with $85 million in ongoing annual funding.
Ottawa said in its spring fiscal update that it would consult Canadians and stakeholders about extending the Canadian Journalism Labour Tax Credit to broadcasters.
The federal budget tabled Thursday says that new measure, along with move to renew a higher credit rate that was set to expire, will cost $501 million.
It says keeping the 35-per-cent rate in place will provide “greater stability as the sector adapts to a changing media landscape.”
The initiative provides qualifying journalism organizations with a refundable 35-per-cent tax credit on wages for eligible newsroom employees, up to $29,750 per employee.
The government will extend the credit, which previously applied only to original written news content, to the production of audio and audiovisual news.
The budget also includes $134 million over four years, starting next year, and $41 million in ongoing funding for the Local Journalism Initiative, which supports journalism in underserved communities.
Groups representing news publishers and broadcasters welcomed the funding Thursday.
“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,” the group’s president Paul Deegan said in a news release.
He said 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 said in a release the tax credit will be effective immediately and help “local stations sustain news operations and serve Canadians with reliable, professional and fact-based journalism.”
The group’s president Kevin Desjardins said the expansion of the tax credit is “critical and welcome support that will help trusted local and national news reach Canadians every day.”
This report by The Canadian Press was first published Nov. 5, 2026.
Anja Karadeglija, The Canadian Press
