On September 15, 2026, the federal government announced a new proposed measure called the Productivity Mega Deduction. In plain terms: it would let businesses immediately deduct the full cost of most eligible equipment and capital property in the year they buy it, rather than writing it off gradually over several years through the usual capital cost allowance (CCA) rules. The government estimates it would expand the share of business capital investment eligible for this kind of immediate write-off from roughly 15% today to about two-thirds.
What would qualify
The proposal covers a broad range of depreciable property acquired on or after September 15, 2026 — machinery, computer equipment, software, vehicles, and various other capital assets. Some categories are specifically excluded, most notably most buildings (though certain manufacturing buildings have their own separate, already-existing immediate-expensing measure). In some cases, previously used equipment can qualify too, provided it's bought from an unrelated party and meets certain conditions.
Why the timing matters
This is still proposed legislation, not law — draft rules have been released, but it hasn't been enacted yet. That said, the eligibility date is already set: property acquired on or after September 15, 2026 is the relevant cutoff being proposed, so purchases made now could matter once (and if) the measure passes, even though the deduction couldn't be claimed until it's law. If you're planning a significant equipment or capital purchase, the timing and structure of that purchase are both worth a conversation before you buy, not after.
What to do next
If your business has capital purchases on the horizon, it's worth reviewing which CCA class they'd fall into and whether they'd likely qualify, and factoring the potential deduction into your cash flow and tax planning for the year — while keeping in mind that the rules aren't finalized yet and could still change before they're enacted. If you're planning a purchase and want to think through the timing, contact us before you buy.