60-Second Tax Update: Productivity Mega Deduction

Are you planning to buy equipment or technology for your business? There is a major new Canadian tax proposal you should know about.

On September 15, 2026, the federal government announced the Productivity Mega Deduction. If it is enacted as proposed, many businesses could deduct 100% of the cost of eligible capital assets in the year the asset becomes available for use, instead of spreading that cost over several years.

This is a timing change. You would still deduct the cost of the asset, only sooner. It can apply to a broad range of depreciable business assets acquired on or after September 15, 2026.

What may not qualify

Not every purchase qualifies. The proposal excludes items such as:

• Certain buildings
• Goodwill and licences
• Certain vehicles
• Some previously used property, which has its own rules

Before you buy

If you are planning a significant business purchase, the timing of that investment could change the tax result. The deduction depends on both the acquisition date and when the asset is available for use. For some owners, it may also be limited to income from the business where the asset is used.

It is worth checking how these proposed rules apply to your situation before you invest. At Integrow CPA, we can walk through how a tax change like this may affect you and your business.

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