September 15, 2026
2 min
Written by: Arian Borys The federal government has announced a proposed Productivity Mega Deduction, which would expand the types of business assets eligible for a full first-year tax deduction.
Announced by Prime Minister Mark Carney at the Canada Investment Summit in Toronto, the proposal builds on measures introduced in Budget 2025. The government says it would expand eligibility from approximately 15% to more than 65% of capital investment and make immediate expensing permanent for eligible assets.
What Would Change for Businesses?
Immediate expensing already allows businesses to deduct the full cost of certain investments in the year they become available for use. The proposal would extend this treatment to more types of assets.
| Key Change | What It Means |
|---|---|
| Broader eligibility | More types of assets would qualify, representing more than 65% of capital investment, up from approximately 15%. |
| Full first-year deduction | Businesses could deduct 100% of the eligible cost in the year the asset becomes available for use. |
| Permanent treatment | Immediate expensing would become permanent for eligible assets. |
| Proposed acquisition date | Generally applies to eligible property acquired on or after September 15, 2026. |
| Restrictions remain | Certain buildings, vehicles and other asset classes would remain excluded. |
The 15% and 65% figures describe the share of capital investment eligible for this treatment—not the percentage of each purchase that can be deducted. Business owners should speak with their accountant about which purchases would qualify.
Planning New Investment? Review Your Business Insurance
For Ontario businesses considering new machinery, equipment or technology, investment planning is also an opportunity to review insurance.
Before new assets arrive or operations change, speak with your broker about:
- Property limits: Whether coverage reflects the equipment and other assets being added.
- Delivery and installation: Whether protection is needed while equipment is transported or installed.
- Business operations: Whether expansion, new services or additional locations require policy updates.
Reviewing planned purchases with your broker can help identify coverage needs before the investment is put into service.
Humberview Insurance Brokers has served Ontario since 1982, providing car, home and business insurance. Contact our team to review your business insurance as your operations grow.
This article is for general information only and does not constitute tax, legal or insurance advice. The proposed tax measures are subject to final legislation and eligibility requirements. Consult your accountant about your business’s circumstances. Insurance coverage is subject to policy terms, conditions, limits and exclusions.