Canada highlights Productivity Mega Deduction in Budget 2026

The Government of Canada has highlighted the Productivity Mega Deduction in Budget 2026 during a visit by Secretary of State Randeep Sarai at Nanak Foods in Surrey, British Columbia.

• The measure lets businesses immediately write off the full cost of a broader range of capital assets, expanding immediate expensing to more than 65% of business investment on a permanent basis.
• It will reduce Canada’s marginal effective tax rate (METR) on new business investment from 13% to 6.4%, which the release says is the lowest in the G7 and less than half the U.S. rate; the release also says Budget 2026 funds the Canada Electricity Strategy to double grid capacity by 2050 and includes investments in nuclear energy and critical minerals.