Canadian businesses will generally be able to immediately expense the full cost of most depreciable property acquired on or after September 15, 2026, following Finance’s recent announcement. The new Productivity Mega Deduction, which was announced on September 15, 2026, significantly expands the Productivity Super-Deduction announced in the 2025 federal budget and supersedes many of the previous CCA measures. The proposed deduction generally allows taxpayers to write off the cost of many additional capital investments in the year that they become available for use. This measure also includes special rules for liquefied natural gas (LNG) facilities and Canadian development expenses (CDE).
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