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A Department of Finance Canada backgrounder dated 15 September describes a proposed Productivity Mega Deduction that would let businesses immediately deduct a broader range of depreciable property. The government says about two-thirds of investment in capital assets would qualify, compared with roughly 15% under the earlier measure.
The estimated incremental fiscal cost is C$36 billion over five years beginning in 2026–27. The proposal would apply to most eligible property acquired on or after 15 September 2026, subject to exclusions and restrictions. It is a proposed tax measure; the page says legislation and detailed rules are to follow.