Canada highlights Productivity Mega Deduction in Budget 2026

Employment and Social Development Canada announced that Secretary of State Stephanie McLean visited Barnacle Systems Inc. in Victoria, British Columbia to highlight the new Productivity Mega Deduction in Budget 2026.

• The measure would let 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.
• The release says Canada’s METR on new business investment will fall from 13% to 6.4%, and says Budget 2026 also includes measures tied to the Canada Growth Incentive, Canada Strong Fund, Canada Electricity Strategy, nuclear energy, and critical minerals.