How is it Really Going in Ottawa?

December 23, 2025

The early months of the new Parliament have been unusually constrained, both politically and procedurally.

Following the spring election, the NDP failed to retain official party status, winning only 7 of the 12 seats required for recognition in the House of Commons. As a result, the party is no longer automatically included in Question Period and does not receive a guaranteed allotment of seats on parliamentary committees.

The loss of committee representation, in particular, has practical consequences. Committees are where much of the real legislative work occurs — amendments are negotiated, compromises struck, and the pace of legislation managed. With fewer voices at the table, opportunities for side deals and negotiated changes have narrowed.

Against that backdrop, parliamentary output has been limited. Since the spring election, the House has passed relatively few bills, with much of its time consumed by procedural manoeuvring rather than substantive law-making.

The House of Commons adjourned for the Christmas recess on December 12, 2025, and is scheduled to return on January 26, 2026.

Confidence of the House

There was notable drama earlier this fall surrounding whether the government’s budget would survive the House.

The flashpoint was Vote No. 50, a motion “That this House approve in general the budgetary policy of the government.” This type of motion is conventionally treated as a confidence vote — meaning that, had it failed, it would have been interpreted as the government losing the confidence of the House, most likely triggering another general election.

Vote # 50 passed by a narrow margin. Five Members abstained, including two NDP MPs, two Conservative MPs, and the Speaker, who by convention only votes to break a tie.

Earlier confidence matters were allowed to proceed without recorded votes, reflecting a degree of procedural cooperation. Whether that approach can continue remains an open question in a divided minority Parliament.

Budget 2025 and Bill C-15

With Vote No. 50 successfully carried, the government was able to introduce Bill C-15, An Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025 — commonly referred to as the Budget Implementation Act (BIA).

On December 10, debate in the House collapsed, allowing Bill C-15 to pass second reading and be referred to committee. The government has committed to 19 committee meetings to study the bill, primarily through the Standing Committee on Finance, with specific portions of the more than 600-page bill referred to other standing committees for review.

Given the minority government context, it is important to note that income tax measures are not substantively enacted until Bill C-15 passes third reading in the House of Commons.

What Comes Next?

Following committee review, Bill C-15 will proceed to Report Stage, where any amendments adopted at committee are reported back to the House. The bill will then move to Third Reading, followed by a final debate and vote.

The Senate has already begun a pre-study of the bill in order to accelerate progress through the Senate once the legislation clears the House. After passing through the Senate the bill will proceed to Royal Assent, which is typically granted as a formality.

The timing of enactment remains uncertain, though passage before the end of March appears unlikely.

What’s In — and What’s Out — of the Budget Implementation Act

Measures Included in Bill C-15

Bill C-15 implements several significant Budget 2025 tax measures, including:

• Enhancements to the SR&ED program
• Changes to transfer pricing rules and documentation requirements
• An increase to the Lifetime Capital Gains Exemption (to $1.25 million, plus indexation)
• A $10 million capital gains exemption for the sale of a business to a worker cooperative or employee ownership trust
• Repeal of both the Digital Services Tax and the Underused Housing Tax
• Reinstatement or extension of accelerated CCA / immediate expensing for:
  • Manufacturing and processing machinery and equipment
  • Clean energy equipment
  • Zero-emission vehicles
• Accelerated CCA for purpose-built rental housing
• Expansion of the Clean Electricity, Critical Mineral Exploration and Clean Technology Manufacturing ITCs
• Inclusion of waste biomass energy equipment within the Clean Technology ITC

Measures Not Included (Despite Budget Commentary)

Several items discussed during Budget 2025 commentary do not appear in Bill C-15 as introduced, including:

• Provisions aimed at preventing the use of tiered corporate structures to defer tax
• Measures to significantly strengthen CRA compliance and enforcement powers
• Certain clean-economy ITC pathways or extensions, such as:
  • Proposed Clean Hydrogen ITC pathway expansions
  • Elements of the EV Supply Chain ITC framework

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