Carney Announces Productivity Mega Deduction Tax Incentive for Canada

Canadian Prime Minister Mark Carney announced the Productivity Mega Deduction tax incentive: businesses can immediately write off the full cost of most new capital investments. The share of covered assets rises from 15% to 65%, including software, computer hardware, fiber optics, and patents. The goal is to cut the effective tax rate on investment from 13% to 6.4% and attract $1 trillion over five years.

• Share of covered assets rises from 15% to 65%
• Investment tax rate to fall from 13% to 6.4%
• Goal to mobilize $1 trillion in investment over five years
• CRA to prioritize requests for projects over $1 billion