OCNI Welcomes Federal Budget 2026: Supply Chain and Export Support Position Canada’s Nuclear Industry for Strong Growth

The Organization of Canadian Nuclear Industries (OCNI), representing over 250 member companies across Canada’s nuclear supply chain, welcomes the Canadian federal government’s 2026 Budget. The budget delivers policy measures, tax incentives, and targeted funding to strengthen domestic nuclear supply chain capabilities and boost the global competitiveness of Canadian nuclear suppliers and technology exporters.

Budget 2026 also explicitly positions nuclear technology as a vital strategic asset for Canadians, highlighting a cumulative $6.5 billion to advance Canada’s Nuclear Strategy.

The budget delivers a series of fiscal measures designed to support Canadian nuclear suppliers as they deliver on the next generation of reactor projects in Canada and abroad. The extension of clean energy tax credits and new incentives for domestic content provide the financial certainty our members need to scale up their operations and confidently meet growing global demand.

• Extended Clean Energy Tax Credits: Budget 2026 extends the Clean Technology and Clean Electricity Investment Tax Credits (ITCs) to the end of 2040. This gives the industry the long-term financial certainty needed for capital-intensive nuclear builds, small modular reactor (SMR) deployments, and major refurbishments.
• Domestic Content Bonus (5%–10%): The government has launched a 60-day consultation to establish a Domestic Content Bonus of up to 10% under the Clean Tech ITC and up to 5% under the Clean Electricity ITC. This creates a direct incentive for project developers to choose Canadian-made components and engineering services.
• $930 Million SR&ED Expansion: Expanding the Scientific Research and Experimental Development (SR&ED) program to cover pre-commercialization costs helps nuclear innovators save capital as they bring next-generation designs to market.
• Productivity Mega Deduction: Permanent immediate expensing for business capital investments significantly lowers the cost of scaling up, enabling OCNI members to invest heavily in facility expansions and cutting-edge manufacturing technologies.

“Budget 2026 delivers the long-term policy predictability and strategic export support our industry needs to compete globally,” said Ivette Vera-Perez, President and CEO of OCNI. “Our member companies are the backbone of Canada’s clean energy future. These investments will empower our world-class supply chain to create high-quality jobs here at home while showcasing Canadian expertise on the world stage. We look forward to working closely with the federal government to ensure these programs translate into real growth for our communities and a stronger economy for all Canadians.”

The budget also channels strategic investments through key federal agencies to grow the domestic supply chain and drive international exports:

• Natural Resources Canada: $261 million over five years (starting in 2027-28), and $14 million ongoing, to develop nuclear supply chains, support research and development, and advance research reactor capacity and readiness.
• Atomic Energy of Canada Limited: $127 million over five years (starting in 2027-28), and $1 million ongoing, for research infrastructure, research and development, workforce development, and other strategic nuclear capabilities.
• Canadian Nuclear Safety Commission (CNSC): $131.1 million over five years (starting in 2027-28) to prepare for new projects and establish the CNSC as the sole federal regulator for nuclear energy. ($18.3 million of this amount will be cost-recovered).
• Global Affairs Canada: $14.4 million over five years (starting in 2027-28), and $3.1 million ongoing, to promote nuclear exports and facilitate government-to-government engagement.

As Canada’s nuclear sector enters a period of historic growth, OCNI remains fully committed to advocating for the interests of our member companies. By championing policies that drive innovation, build a skilled workforce, and open new international markets, OCNI works to ensure that Canada’s nuclear supply chain has the support it needs to thrive as a competitive global leader in clean energy.