The proposed Canadian’s Entrepreneurs’ Incentive will be phased in at $400,000 per year until it hits $2 million in 2029, five years sooner than the original plan, Finance Canada announced Monday. It is also lowering eligibility thresholds, requiring tax filers—not just founders as previously proposed—to own five instead of 10 per cent of the sold firm over any two-year period to qualify. (The Logic)

Talking point: The Liberal government’s April federal budget proposed to increase the inclusion rate on capital gains from half to two-thirds starting in June, and offered the incentive as a way of encouraging people to keep starting new businesses. But tech founders and investors expressed concern about the effect the change would have on startup investment and the intangible climate for entrepreneurship in Canada. Monday’s incentive updates “fall short of addressing the harm caused by the government’s tax plans on Canada’s innovation economy,” said Ben Bergen, president of the Council of Canadian Innovators, a scale-up lobby group. It’s continuing to call for a “full reversal” of the capital gains changes.