September 23, 2026
The Federal Government announced a Productivity Mega Deduction yesterday providing 100% write-off for almost all capital property. This applies to most capital property acquired on or after September 15, 2026.
Here is the official announcement:
- Government of Canada introduces new Productivity Mega Deduction to boost Canada’s advantage as the …
Here is a summary of the government proposal:
- Assets not eligible for the Productivity Mega Deduction can still rely on the productivity super deduction incentives (as outlined in our report)
- Proposed for most depreciable property that is acquired on or after September 15, 2026.
- Depreciable property eligible for immediate expensing would include all capital property that is subject to the CCA rules, except:
- buildings (and additions to buildings) included in CCA classes 1 and 3;
- property included in CCA classes 14 and 14.1 (e.g., franchises, licenses and goodwill), and class 51 (e.g., regulated natural gas distribution pipelines);
- certain vehicles in classes 10 and 10.1; and
- property depreciated under Schedule V and VI of the Income Tax Regulations.
- Previously used capital property may qualify if:
- neither the taxpayer nor a non-arm’s-length person previously owned the property; and
- the property has not been transferred to the taxpayer on a tax-deferred “rollover” basis.