Canada unveils Productivity Mega Deduction for business investment

The Government of Canada has announced a new Productivity Mega Deduction to encourage business investment, expansion, and job creation in Canada.

• The measure will allow businesses to immediately deduct the full cost of a broader range of investments, expanding eligible assets from about 15% to more than 65%.
• The policy covers fibre-optic cable, greenhouses, mining property, oil and gas pipelines, software, R&D, computer equipment, aircraft, vehicles, patents, rail track, bridges, and roads; immediate expensing is being made permanent and the marginal effective tax rate on new business investment is expected to fall from roughly 13% to 6.4%.