The federal government announced on October 9 that businesses will be able to immediately deduct the full cost of a much broader range of investments under a new Productivity Mega Deduction. The announcement was made in Hackett’s Cove, Nova Scotia, by Immigration, Refugees and Citizenship Minister Lena Metlege Diab alongside Finance Minister François-Philippe Champagne.
According to the release, the deduction raises the share of business assets eligible for immediate expensing from roughly 15 per cent to more than 65 per cent. Eligible investments include fibre-optic cables, greenhouses, mining property, oil and gas pipelines, software, research and development, computer equipment, aircraft and vehicles, patents, rail track, bridges and roads. The government is also making immediate expensing permanent.
The release says the changes will cut the marginal effective tax rate on new business investment from roughly 13 per cent to 6.4 per cent, which the government describes as the lowest of any major economy in the world and less than half the rate in the United States.
Metlege Diab said the plan means “more opportunities for workers, stronger local businesses, and a country where skilled newcomers and Canadians can build a future together.”
For Surrey’s South Asian-owned small businesses, the angle is direct: equipment, vehicles, computers and software bought for the business can now be written off in full in the year of purchase instead of being depreciated over several years, according to the release.
(Source: Government of Canada news release, October 9, 2026)
