Tax measureCanadaPassed, not switched on

Productivity Super-Deduction (Budget 2025) (Budget 2025 CCA measures)

Budget 2025 (4 November 2025): immediate expensing for manufacturing and processing buildings, phased down to 75% (2030-31) and 55% (2032-33); temporary reinstatement of the Accelerated Investment Incentive; faster capital cost allowance for low-carbon LNG facilities. The Accelerated Investment Incentive and immediate expensing were enacted in the Budget 2025 Implementation Act, No. 1 (Bill C-15, royal assent 26 March 2026, S.C. 2026, c. 3); we have not confirmed that the measures for manufacturing buildings and LNG facilities have been enacted. Largely superseded by the Mega Deduction for eligible assets.

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 4 November 2025
   Budget 2025 introduces a "Productivity Super-Deduction" that Finance says cuts Canada's marginal effective tax rate from 15.6% to 13.2%
2. Royal Assent 26 March 2026

Events

• 15 September 2026Productivity Mega Deduction announced at the Canada Investment Summit: permanent immediate expensing covering more than 65% of business assetsDocumentLegislationCanada16 sources
• 4 November 2025Budget 2025 introduces a "Productivity Super-Deduction" that Finance says cuts Canada's marginal effective tax rate from 15.6% to 13.2%DocumentOtherCanada3 sources