Minister Metlege Diab highlights new Productivity Mega Deduction to help businesses invest, grow, and create jobs in Canada

What Changed
– Introduction of the new Productivity Mega Deduction, allowing businesses to immediately deduct the full cost of a broader range of investments.
– Increased eligible assets for immediate expensing from approximately 15% to over 65%, which includes various sectors such as technology, renewable energy, and infrastructure.
– Permanent implementation of immediate expensing, providing long-term certainty for businesses making investment decisions.
– Reduction of the marginal effective tax rate on new business investments from about 13% to 6.4%.

Who is affected
– Employers and businesses seeking to invest in equipment, technology, and expanding operations.
– Current and prospective workers, including skilled newcomers, who may benefit from job creation and economic growth.
– Communities across Canada, particularly in Atlantic Canada, that will see enhanced local businesses and opportunities.

Key dates
– Announcement made on October 9, 2026.

Required actions
– Businesses should assess their investment plans to take advantage of the new tax incentives and consider the broadened range of eligible assets for immediate expensing.