Last verified: June 2026
A business owner who sells the shares of their company to a qualifying worker co-operative can exempt up to $10 million of capital gains from tax. The sale must meet a strict definition of a qualifying co-operative conversion, including arm's-length dealing and the buyer being a newly formed worker co-op. A capital gains reserve of up to 10 years is also available so the seller can spread the gain while the co-op funds the purchase. Originally set to expire at the end of 2026, the measure was made permanent in the spring 2026 federal economic update.
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