The federal government has introduced a new tax incentive to spur business investment. Prime Minister Mark Carney announced the “productivity mega deduction” during the Canada Investment Summit underway in Toronto. The deduction will increase the amount of assets covered to more than 65 per cent from roughly 15 per cent. Those include fibre-optic cable, mining property, oil and gas pipelines, software, rail track, bridges and more. The fiscal cost of the new deduction is estimated at $36 billion over five years, beginning this year. Ottawa is also making immediate expensing permanent so businesses can recover costs sooner, lowering Canada’s marginal effective tax rate on new business investment to 6.4 per cent from 13 per cent. This report by The Canadian Press was first published Sept. 15, 2026. Lauren Krugel, The Canadian Press
