Tax measureCanadaNot passed yet

Productivity Mega Deduction

Proposed federal tax measure giving permanent immediate (100%) expensing for most depreciable property acquired on or after September 15, 2026, about two-thirds of business capital investment, and immediate deduction of Canadian development expenses (normally 30% a year). LNG liquefaction equipment (Class 47) gets 100% for assets acquired on or after November 4, 2025, without the emissions condition attached to earlier proposals; most buildings and regulated gas distribution pipelines (Class 51) are excluded. Finance Canada estimates the cost at $36 billion over five years and says it cuts Canada's marginal effective tax rate on new investment from 13.0% to 6.4% (United States: 16.9%). It was released as draft legislative proposals on September 15, 2026; as of late September 2026 no bill or Ways and Means motion had been tabled, and the government had not said which legislation will carry it.

Stages

Passing a law is not the same as switching it on, and switching it on is not the same as using it. Each stage is dated where known.

1. Announced 15 September 2026
   Productivity Mega Deduction announced at the Canada Investment Summit: permanent immediate expensing covering more than 65% of business assets

Events

• 15 September 2026Productivity Mega Deduction announced at the Canada Investment Summit: permanent immediate expensing covering more than 65% of business assetsDocumentLegislationCanada16 sources
• 15 September 2026Carney's Summit opening speech: 'Economic integration is being weaponised. Tariffs are used as leverage' (US not named)StatementStatementCanada3 sources
• 14 September 2026Canada Investment Summit in Toronto, hosted by the Prime Minister's Office with CPP Investments and PSP InvestmentsStatementInvestment decisionCanada3 sources
• 14 September 2026Canada Revenue Agency will prioritize advance income tax ruling requests for investments of $1 billion or moreStatementOtherCanada2 sources