10/06/2026
BIG TAX NEWS FOR CANADIAN BUSINESSES
The federal government has proposed a new Productivity Mega Deduction that could allow businesses to immediately deduct the full cost of many qualifying investments for income-tax purposes.
π‘ Think:
β
Equipment & machinery
β
Computers & software
β
Data-network infrastructure
β
Certain vehicles
β
Patents & other qualifying property
β¦and more.
π What could change?
The proposal would make immediate expensing permanent for a much broader range of depreciable property, with the government estimating that more than 65% of capital-asset investment could become eligible.
π° Example:
A business purchases a qualifying $50,000 asset. Under the proposed rules, the business could potentially deduct the full $50,000 in the first year the asset becomes available for use.
β οΈ IMPORTANT:
This is a proposed tax measure and should not be treated as a finalized CRA rule. Eligibility, exclusions, loss restrictions and other conditions apply, and businesses should confirm the final legislation before relying on the deduction.
Business owners:
Would a first-year 100% write-off change your decision to buy equipment, technology or other business assets?
π YES or NO β and what would you invest in?