Acquisition date
The broad proposal generally applies to eligible property acquired on or after September 15, 2026.
New 2026 business tax tool
Canada Productivity Mega Deduction Calculator
Estimate a potential first-year deduction and tax effect for a Canadian business capital purchase. The calculator compares the proposed immediate-expensing treatment with an estimated existing 2026 first-year deduction where a dependable comparison is available.
Proposal announced September 15, 2026Proposed—not yet enacted
Investment details
What is the business buying?
Enter the rate that applies to the income reduced by the deduction. The available-income amount prevents the page from presenting a tax saving that cannot be used immediately.
How the proposal works
A faster deduction—not a refund of the purchase price.
Capital property is normally deducted over time through capital cost allowance. The proposal would permit immediate expensing for a much broader group of eligible assets in the year they become available for use. The tax saving depends on the rate applying to the income reduced and whether the business can use the deduction.
Available for use
Ordering or paying is not enough. The property generally needs to be ready for its intended business use.
Tax effect
A $100,000 deduction reduces taxable income by $100,000; it does not create a $100,000 refund.
Keep evidence
Keep invoices, payment records, specifications, installation dates and used-property ownership details.
Property that may be in scope
- General equipment, machinery, furniture and fixtures
- Computers, data-network equipment and qualifying software
- Qualifying clean-energy and manufacturing assets
- Patents and many other depreciable capital assets
- Some arm’s-length purchases of previously used property
Excluded or requiring special review
- Ordinary Class 1 and Class 3 buildings and additions
- Classes 14, 14.1 and 51, including many franchises, licences and goodwill
- Certain Class 10 and 10.1 vehicles
- Leaseholds, vehicles and assets with uncertain classification
- Related-party, rollover and specified-property situations
Before relying on an estimate
Confirm the facts behind the number.
Correct CCA class and asset specifications
Acquisition and available-for-use dates
Business-use percentage and assistance received
Prior ownership and related-party status
Taxable income and applicable tax rate
Whether an existing incentive already gives a full deduction
Important: The Productivity Mega Deduction is a federal proposal supported by draft legislation dated September 15, 2026 and is not yet enacted. Results are educational estimates, not filing advice. Actual claims can be affected by CCA classification, tax year, short-year rules, dispositions, government assistance, cost limits, income or loss restrictions and later legislative changes.