On Sept. 15, 2026 in Toronto, the office of the Prime Minister announced a 'Productivity Mega Deduction' that would broaden eligibility for immediate investment write-offs. The government said eligible asset coverage would rise from about 15% to over 65% and signalled plans to make immediate expensing permanent.
The release lists examples of assets now intended to qualify, including software, research and development costs, machinery, transport assets and infrastructure. The government described immediate expensing as allowing an eligible investment cost to be deducted in the first year an asset becomes available for use rather than deducted over its useful life.
Officials provided an estimate that the marginal effective tax rate on new business investment would fall from around 13% to 6.4%; the announcement characterises this as a government estimate. The release does not present independent verification of those effects and does not set out detailed commencement rules or full eligibility criteria.
