On September 15, 2026, at the first Canada Investment Summit, the federal government announced a new "Productivity Mega Deduction" — a permanent, broad-based immediate expensing rule for business capital investment. It's the third significant federal capital-expensing measure to surface in less than a year, following measures already legislated in the November 2025 budget and a separate proposal released in January 2026. For a business in Alberta, BC, or Ontario weighing whether to buy equipment, expand a facility, or time a capital project around year-end, the practical question isn't "is there a new deduction" — it's which parts of this are actually deductible today, and which are still a government proposal. The answer is different for each measure, and the distinction matters for anything you'd otherwise book on the strength of it.
What's already law: Bill C-15, in force since March 2026
The federal government tabled the Budget 2025 Implementation Act, No. 1 (Bill C-15) on November 18, 2025. It received Royal Assent on March 26, 2026, and is now Statutes of Canada 2026, c. 3 — settled law, not a proposal.
Among its business tax measures, Bill C-15 reinstated the Accelerated Investment Incentive and 100% first-year immediate expensing for three categories of property:
- Manufacturing and processing machinery and equipment
- Clean energy generation and energy conservation equipment
- Zero-emission vehicles
The immediate 100% write-off applies to qualifying property acquired on or after January 1, 2025 and available for use before 2030. An enhanced allowance — three times the normal first-year CCA rate — is available on the same property classes for use extending through 2033, phasing out between 2030 and 2034.
Source: Parliament of Canada — LEGISinfo, Bill C-15 (45th Parliament, 1st session).
What's proposed but not yet law: two more measures, two different stages
Two further pieces of the same policy push are still working through the legislative process, and neither is currently deductible.
Manufacturing and processing buildings — draft legislation, not yet introduced as a bill. Budget 2025 also proposed a 100% first-year CCA rate for eligible M&P buildings, but this measure was left out of Bill C-15. The Department of Finance released it separately as draft legislation on January 29, 2026, open for consultation. As drafted, it would let a business immediately deduct the full cost of an eligible M&P building — including qualifying additions and renovations — acquired on or after November 4, 2025 (Budget Day), provided at least 90% of the building's floor space is used to manufacture or process goods for sale or lease, and the building is first used for that purpose before 2030, with a four-year phase-out after. Draft legislation released for consultation is not law until it is introduced in Parliament and passes all three readings plus Royal Assent — none of which has happened yet for this measure.
The Productivity Mega Deduction — announced, draft proposals released, not introduced as a bill. This is the September 15, 2026 measure. As proposed, it would make immediate 100% first-year expensing permanent — with no sunset date, unlike the temporary measures above — and extend it to a much broader range of new and used depreciable property, plus Canadian development expenses (raising the effective deduction on those expenses from 30% to 100%). A separate rule would let liquefied natural gas facilities claim an additional allowance on Class 47 liquefaction equipment to reach a 100% CCA rate, deductible only against income from liquefying natural gas at that facility. The proposed start date is property acquired, or development expenses incurred, on or after September 15, 2026 — but only once the measure is actually enacted. As of this writing, it exists as draft legislative proposals released alongside the announcement, not as a bill before Parliament.
Source: Department of Finance Canada — Government of Canada introduces new Productivity Mega Deduction.
Side by side
| Measure | Status | Property acquired | Effect |
|---|---|---|---|
| M&P machinery/equipment, clean energy equipment, ZEVs | Law (Bill C-15, Royal Assent Mar. 26, 2026) | On/after Jan 1, 2025, available for use before 2030 | 100% first-year CCA |
| M&P buildings | Proposed (draft legislation, Jan 29, 2026) | On/after Nov 4, 2025, first used before 2030 | 100% first-year CCA, if enacted as drafted |
| Productivity Mega Deduction (broad property + Canadian development expenses) | Proposed (draft proposals, Sept 15, 2026) | On/after Sept 15, 2026, once enacted | Permanent 100% first-year expensing / deduction |
The federal general corporate tax rate (15%) and small business rate (9% on the first $500,000 of active business income) are unchanged by any of this.
Why the distinction matters for a real capital decision
- Cash-flow and instalment planning should only reflect what's currently law. The C-15 measures can be built into a 2026 tax provision or instalment calculation now. The building measure and the Mega Deduction cannot — not until each clears Parliament and receives Royal Assent, the same milestone that turned last year's budget promise into this year's actual deduction.
- Acquisition date, not purchase decision date, drives eligibility. Each measure keys off when the property is acquired (and, for machinery/equipment/ZEVs, when it becomes available for use), not when a purchase order is signed. A business timing a large capital purchase around one of these cutoffs — November 4, 2025 for the buildings measure, September 15, 2026 for the Mega Deduction — needs the acquisition date documented precisely if either measure is later enacted as proposed.
- New and used property are both in scope for the Mega Deduction as proposed, which is broader than the machinery-only rules already in force. If your business is planning a used-equipment purchase, that distinction is worth watching as the draft moves toward a bill.
- Don't assume any of this changes a return you're filing today. A capital purchase made this fall is deductible under whichever rules are actually in force on the date you file — track the legislative status the same way you'd track any other pending measure before relying on it.
Key takeaways
- Only one of the three measures is currently law: the Accelerated Investment Incentive and immediate expensing for M&P machinery/equipment, clean energy equipment, and ZEVs, in force since Bill C-15 received Royal Assent on March 26, 2026.
- Immediate expensing for M&P buildings is still draft legislation (released January 29, 2026), not yet introduced as a bill.
- The Productivity Mega Deduction, announced September 15, 2026, is a proposal, not an enacted measure — track its progress through Parliament before relying on it for a filing position.
- Federal corporate tax rates are unchanged: 15% general rate, 9% small business rate on the first $500,000 of active business income.
Capital purchase timing decisions increasingly hinge on legislative status as much as on the numbers themselves, and that's a detail that's easy to get wrong when three related measures are moving through Parliament at different speeds. RN Canada helps owner-managed businesses across Alberta, British Columbia, and Ontario plan capital purchases and prepare corporate returns against the rules that are actually in force. Our corporate and personal tax and tax return preparation teams can help you separate what you can deduct now from what's still working its way through Parliament.