Performing arts groups have been lobbying the government to create a new live performance tax credit. Let’s hope the finance minister mentions this proposal in his economic statement because it truly is an investment for all, not just one gender or one region.
By Sheila Copps
First published in The Hill Times on April 27, 2026.
OTTAWA—A little-known study published last year by the Canadian Chamber of Commerce laid to rest the myth that cultural spending is a drain on federal finances.
On the contrary, the report, entitled Artworks: The Economic and Social Dividends from Canada’s Arts and Culture Sector, reported that, in 2024, the arts and culture sector contributed $65-billion in direct gross domestic product to the Canadian economy.
Conducted by the Canadian Chamber of Commerce’s Business Data Lab, and commissioned by Business/Arts along with the Canada Council for the Arts, Artworks also pointed out that, from 2022 to 2025, spending in arts and culture increased at a rate almost double the general Canadian sectoral growth.
On the international scene, this country sold almost $25-billion in goods and services globally.
According to the report, since 2011, arts-sector spending growth has outpaced all other sectors, including oil and gas, construction, wholesale and retail trade and manufacturing.
Most important for the Department of Finance is that the sector generates $17-billion in federal and provincial taxes.
So why is it, that when the conversation turns to the economy, our attention is focused not on this growth sector, but on other sectors like fossil fuels, auto, and construction?
Principal economist for the Canadian Chamber of Commerce Andrew DiCapua had this to say about government investment in the sector: “The arts and culture sector generates $29 in economic activity for every dollar in federal investment—that’s an extraordinary return in addition to the social benefits that the sector generates. Yet, we’re seeing concerning trends in both public and private funding. If we want to maintain Canada’s cultural competitiveness and harness this sector’s full economic potential, we need sustained, strategic investment.”
Prime Minister Mark Carney has a chance to advance cultural investment in the economic update that his government will be tabling this week.
The Build Communities Strong funding is definitely intended to boost jobs and grow the economy in infrastructure projects with a budget of $27.8-billion over the next decade. Those jobs will primarily go to men.
These investments tie in with Canada Strong, which was the government’s mantra until a new logo was launched at the recent Liberal national convention in Montreal.
The new mantra is Canada for All. This vision ties in beautifully with the Chamber of Commerce call for more investment in arts and culture.
Unlike other investments, government spending in arts and culture reaches out to almost every community in the country.
Festivals and Major Events Canada, the national organization representing everyone from Carnaval de Quebec to the Calgary Stampede, represents more than 500 festivals in communities across the country. That doesn’t include live theatre and music performances that multiply across the country during the summer season.
A coalition of performing arts organizations have been lobbying the government to create a new live performance tax credit. The credit is modelled after the wildly successful Canadian Film or Video Tax Credit which was launched by the government of Jean Chrétien back in 1995.
That 25-per-cent credit on the hiring of Canadian talent was the first of its kind in the world. It has been so successful that similar models have been launched in more than 40 countries around the world. It generates $3.40 in revenue for every dollar spent by the government.
A similar performing arts credit would generate $23 in local economic impact, so its accelerator value is huge. Why? Because when people attend performances, they often spend money in the community, with dinner or drinks before or after.
The government price-ticket on this live performance accelerator tax credit is $100-million annually over three years.
Government officials at multiple levels have been reviewing the proposal, but say it is too rich.
In comparison, the government uptick in military spending to meet NATO targets is $81-billion over five years.
A price tag of $300-million over three years is modest in comparison to the jobs and spending impact it will have on every community in the country.
Canada for All should mean that jobs are not happening only be in male-dominated sectors like the military and infrastructure construction.
A modest arts investment would reach out to every region and every community, with jobs for youth and women who are underrepresented in Canada Strong investments.
In the 10 years of conservative economic statements, the word ‘culture’ rarely appeared.
Let’s hope the finance minister mentions this modest tax credit proposal in his economic statement because it truly is an investment for all, not just one gender or one region.
If the Canadian Chamber of Commerce is promoting cultural investment, the government should be listening.
Sheila Copps is a former Jean Chrétien-era cabinet minister and a former deputy prime minister. Follow her on Twitter at @Sheila_Copps.