'Moment We've Been Waiting for': Biz Groups Cheer Ottawa's Tax Deduction Expansion
The permanent tax break lets firms fully write off more assets and is projected to cost $36 billion over five years, government estimates.
- On Tuesday, Prime Minister Mark Carney announced the Productivity Mega Deduction at the Canada Investment Summit in Toronto, a permanent tax reform designed to attract global capital across diverse sectors.
- Expanding the 2025 Productivity Super-Deduction, the policy increases eligible assets from about 15 per cent to two-thirds, aiming to reduce Canada's marginal effective tax rate to 6.4 per cent from 13 per cent.
- With a $36 billion cost over five years, government modelling projects $8.5 billion in annual support will generate up to $22 billion in economic output. The initiative covers assets including oil pipelines, fibre-optic cable, and rail.
- Carney also unveiled plans for private investment concessions at major airports to modernize facilities. Business groups applauded the overhaul, while Greenpeace Canada strategist Keith Stewart condemned the fossil fuel incentives as 'climate vandalism'.
- Finance Canada will now prioritize advanced tax rulings for investments exceeding $1 billion to provide investors greater certainty, aiming to catalyze $1 trillion in investment over five years.
21 Articles
21 Articles
Canadian government introduces mega-deduction tax measure to spur more investment
The productivity mega-deduction will allow companies to expense the total cost of new investments across a number of sectors, including machinery, equipment, clean energy, zero-emission vehicles and more.
Prime Minister unveils $36 billion tax 'mega deduction' to boost major industrial investments
Mark Carney, opening the Canada Investment Summit in Toronto, said the new incentive would create "the most tax-competitive country in the G7 for new business" and unlock $22 billion in economic output and 80,000 jobs a year.
Carney says investment tax incentive expansion is a “mega deduction”
By Lauren Krugel The Canadian Press Posted September 15, 2026 3:04 pm 1 min read Descrease article font size Increase article font size The federal government is expanding a tax incentive aimed at boosting new business investment. Prime Minister Mark Carney announced the “productivity mega deduction” during the Canada Investment Summit underway in Toronto, building [...]
TORONTO, Sept. 15, 2026 /CNW/ -- Canada has what the world wants. We are a superpower both in the field of clean energy and in the field of energy.
Prime Minister Carney introduces new Productivity Mega Deduction to boost Canada's advantage as the most competitive G7 country for new business investment
/CNW/ -- Canada has what the world wants. We are a superpower in both clean and conventional energy, with vast deposits of critical minerals. We are the...
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