C-19 · Canada Groceries and Essentials Benefit Act

1This Act may be cited as the Canada Groceries and Essentials Benefit Act .

2Subsection 117.1(2) of the Income Tax Act is amended by adding the following after paragraph (m): (m.1) each of the amounts expressed in dollars in subsection 122.5(3.005), for a taxation year that begins after 2026;

3(1) Section 122.5 of the Act is amended by adding the following after subsection (3.003): (3.004) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount determined by the formula 0.25 × (A − B) − C where A is the total of (a) $1,047, (b) $1,047 for the qualified relation, if any, of the individual in relation to the specified month, (c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $1,047, (d) $552 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month, (e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $552, and (f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $552 and 6% of the amount, if any, by which the individual’s income for the taxation year exceeds $11,337; B is 15% of the amount, if any, by which the individual’s adjusted income for the taxation year exceeds $45,521; and C is the amount that the eligible individual is deemed to have paid under subsection (3) during the specified month on account of their tax payable for the taxation year. Additional deemed payment — July 2026 to April 2031 (3.005) An eligible individual in relation to a month specified for a taxation year who files a return of income for the taxation year is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year an amount equal to 1/4 of the amount, if any, determined by the formula A − B where A is the total of (a) $445, (b) $445 for the qualified relation, if any, of the individual in relation to the specified month, (c) if the individual has no qualified relation in relation to the specified month and is entitled to deduct an amount for the taxation year under subsection 118(1) because of paragraph (b) of the description of B in that subsection in respect of a qualified dependant of the individual in relation to the specified month, $445, (d) $234 times the number of qualified dependants of the individual in relation to the specified month, other than a qualified dependant in respect of whom an amount is included under paragraph (c) in computing the total for the specified month, (e) if the individual has no qualified relation and has one or more qualified dependants, in relation to the specified month, $234, and (f) if the individual has no qualified relation and no qualified dependant, in relation to the specified month, the lesser of $234 and 2% of the amount, if any, by which the individual’s income for the taxation year exceeds $11,564; and B is 5% of the amount, if any, by which the individual’s adjusted income for the taxation year in relation to the specified month exceeds $46,432. (2) Section 122.5 of the Act is amended by adding the following after subsection (3.04): January 2026 payment — shared-custody parent (3.05) Notwithstanding subsection (3.004), if an eligible individual is a shared-custody parent (as defined in section 122.6, with reference to the term “qualified dependant” read as a reference to that term as defined in subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.004) to have been paid during the specified month is equal to the amount determined by the formula 0.5 × (A + B) where A is the amount determined by the formula in subsection (3.004), calculated without reference to this subsection; and B is the amount determined by the formula in subsection (3.004), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6. July 2026 to April 2031 payments — shared-custody parent (3.06) Notwithstanding subsection (3.005), if an eligible individual is a shared-custody parent (as defined in section 122.6, with reference to the term “qualified dependant” read as a reference to that term as defined in subsection (1)) in respect of one or more qualified dependants at the beginning of a month, the amount deemed by subsection (3.005) to have been paid during the specified month is equal to the amount determined by the formula 0.5 × (A + B) where A is the amount determined by the formula in subsection (3.005), calculated without reference to this subsection; and B is the amount determined by the formula in subsection (3.005), calculated without reference to this subsection and subparagraph (b)(ii) of the definition eligible individual in section 122.6. (3) Subsection 122.5(3.2) of the Act is replaced by the following: Advance payment (3.2) If this subsection applies, the total of the amounts that would otherwise be deemed by subsections (3) and (3.005) to have been paid on account of the eligible individual’s tax payable under this Part for the taxation year during the particular month specified for the taxation year, and during each subsequent month specified for the taxation year, is deemed to have been paid by the eligible individual on account of their tax payable under this Part for the taxation year during the particular specified month for the taxation year, and the amount deemed by subsections (3) and (3.005) to have been paid by the eligible individual during those subsequent months specified for the taxation year is deemed, except for the purpose of this subsection, not to have been paid to the extent that it is included in an amount deemed to have been paid by this subsection. (4) Section 122.5 of the Act is amended by adding the following after subsection (4.3): January 2026 — month specified (4.4) Notwithstanding subsection (4) and for the purposes of this section, the month specified in subsection (3.004) is January 2026 and the taxation year is the 2024 taxation year. July 2026 to April 2031 — month specified (4.5) Notwithstanding subsection (4) and for the purposes of this section, the months specified in subsection (3.005) are July 2026, October 2026, January 2027, April 2027, July 2027, October 2027, January 2028, April 2028, July 2028, October 2028, January 2029, April 2029, July 2029, October 2029, January 2030, April 2030, July 2030, October 2030, January 2031 and April 2031, and if the month specified is July or October, the taxation year for the month specified is the immediately preceding taxation year and if the month specified is January or April, the taxation year for the month specified is the second preceding taxation year. Subsection (3) does not apply — month specified (4.6) Notwithstanding subsection (3), the amount that an eligible individual in relation to a month specified in subsection (4.5) is deemed to have paid during the specified month on account of their tax payable under this Part for the taxation year under subsection (3) is deemed to be nil for that specified month.

4(1) Paragraph 152(1)(b) of the Act is replaced by the following: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005) , 122.51(2), 122.7(2) or (3), 122.‍72(1), 122.8(4), 122.9(2), 122.91(1), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.44(2), 127.45(2), 127.48(2), 127.49(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (2) Paragraph 152(1.2)(d) of the Act is replaced by the following: (d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.005) , 122.‍72(1) or 122.8(4) to have been paid by an individual for a taxation year to be nil, subsection (2) does not apply to the determination unless the individual requests a notice of determination from the Minister. (3) Paragraph 152(4.2)(b) of the Act is replaced by the following: (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005) , 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.

5Paragraph 160.1(1.1)(b) of the Act is replaced by the following: (b) the total of the amounts deemed by any of subsections 122.5(3) or (3.002) to (3.005) to have been paid by the individual during those specified months.

6(1) Subsections (2) to (6) apply if Bill C-15, introduced in the 1st session of the 45th Parliament and entitled the Budget 2025 Implementation Act, No. 1 (in this section referred to as the “other Act”), receives royal assent. (2) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection 4 (1) of this Act, is replaced by the following: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (3) Paragraph 152(1.2)(d) of the Income Tax Act , as enacted by subsection 4 (2) of this Act, is replaced by the following: (d) the Minister determines the amount deemed by any of subsections 122.5(3) to (3.005), 122.72(1), 122.8(4) or 127.421(2) or (3) to have been paid by a person for a taxation year to be nil, subsection (2) does not apply to the determination unless the person requests a notice of determination from the Minister. (4) Paragraph 152(4.2)(b) of the Income Tax Act , as enacted by subsection 4 (3) of this Act, is replaced by the following: (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.005), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year. (5) Paragraph 152(1)(b) of the Income Tax Act , as enacted by subsection (2), comes into force on the day on which this Act receives royal assent, except that, for the period beginning on January 1, 2026 and ending on the day immediately before the day on which this Act receives royal assent, that paragraph is to be read as follows: (b) the amount of tax, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.72(1), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 125.4(3), 125.5(3), 125.6(2) or (2.1), 127.1(1), 127.41(3), 127.42(2) or (3), 127.421(2) or (3), 127.44(2), 127.45(2), 127.48(2), 127.49(2), 127.491(2) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year. (6) Paragraph 152(4.2)(b) of the Income Tax Act , as enacted by subsection (4), comes into force on the day on which this Act receives royal assent, except that, for the period beginning on January 1, 2026 and ending on the day immediately before the day on which this Act receives royal assent, that paragraph is to be read as follows: (b) redetermine the amount, if any, deemed by any of subsections 120(2) or (2.2), 122.5(3) to (3.003), 122.51(2), 122.7(2) or (3), 122.8(4), 122.9(2), 122.91(1), 122.92(3), 122.93(2), 127.1(1), 127.41(3) or 210.2(3) or (4) to be paid on account of the taxpayer’s tax payable under this Part for the year or deemed by subsection 122.61(1) to be an overpayment on account of the taxpayer’s liability under this Part for the year.