Bill 12: Cutting Taxes on Small Businesses Act, 2025

This bill directly benefits small incorporated businesses operating in Ontario that earn active business income. The typical affected business is a Canadian-controlled private corporation — think a local shop owner, trades contractor, professional services firm, or tech startup — earning up to $600,000 in annual taxable income. These businesses will see a meaningful reduction in their provincial corporate income tax, with the deduction rate increasing by 1.6 percentage points and the eligible income cap rising by $100,000. Smaller businesses earning under $500,000 benefit from the rate cut alone, while those earning between $500,000 and $600,000 get an additional benefit from the expanded limit.