Back to the list
UnknownFederalOther incentives

Immediate expensing / Productivity Super-Deduction and Mega Deduction (accelerated CCA)

Finance Canada / Canada Revenue Agency

Deduct the full cost of eligible property in the year it becomes available for use. Share of eligible investment rises from about 15% to about two-thirds of capital assets; estimated incremental federal cost $36 billion over five years starting 2026-27.

The proposed Productivity Mega Deduction would give permanent immediate expensing (full first-year write-off) for a broad range of depreciable property, raising the share of capital investment eligible from about 15% (Budget 2025 Productivity Super-Deduction) to about two-thirds. Assets not eligible keep the Accelerated Investment Incentive.

Open the official page ↗
24
Long shot

How to apply

Loading…

Who qualifies

Businesses (taxpayers) acquiring depreciable property subject to CCA rules on or after September 15, 2026, plus Canadian development expenses incurred on or after that date. Excluded: buildings in CCA classes 1 and 3 (manufacturing and processing buildings stay under the Budget 2025 temporary measure), classes 14, 14.1 and 51, certain vehicles in classes 10 and 10.1, and property under Schedules V and VI. Used property qualifies only if neither the taxpayer nor a non-arm's-length person owned it before and it was not transferred on a tax-deferred rollover basis. Loss-creation restrictions apply to individuals and partnerships with individual members.

CorporationSmall business

Good to know

  • Funding: No per-taxpayer cap stated. LNG Class 47 liquefaction equipment gets an additional allowance reaching a 100% CCA rate, available for assets acquired on or after November 4, 2025.
  • Notes: Legislative status could not be confirmed as enacted; treat as proposed until the Income Tax Act amendments receive Royal Assent. Check CRA guidance before claiming.

Evidence from the official page

  • status“the Government of Canada proposes to implement the Productivity Mega Deduction, which will provide immediate expensing for a broad-based range of depreciable property on a permanent basis.” source ↗
  • eligibility“Depreciable property eligible for immediate expensing would include all capital property that is subject to the CCA rules acquired on or after September 15, 2026” source ↗
  • amount“The estimated incremental fiscal cost of the measure is $36 billion over five years, beginning in 2026-27.” source ↗
  • amount“Immediate expensing would allow them to deduct the full cost of an eligible investment in the first year the asset becomes available for use.” source ↗

Verified 2026-10-09 · High confidence. Always confirm on the official page before applying.