How much does Canada's new 100% write-off save your business this year?
The Productivity Mega Deduction lets Canadian businesses deduct the full cost of most equipment, vehicles, software and machinery in the year they buy it. Enter a purchase and see the tax reduction for your province.
Calculate your year-one tax reduction
Free: the Year-End Purchase Checklist (PDF)
One page. What qualifies, what does not, the 'available for use' trap, and the seven questions to ask your accountant before you buy. No spam, unsubscribe any time.
What changed on September 15, 2026
Before
Most equipment was written off over years under capital cost allowance (CCA): 20% a year for tools and furniture, 30% for vehicles and machinery, with only half of that allowed in year one.
Now (proposed)
100% of the cost of eligible depreciable property is deductible in the year it becomes available for use. Permanent, not a temporary incentive. About two-thirds of business capital investment qualifies.
Excluded
Buildings and additions (Classes 1 and 3), goodwill, franchises and licences (Classes 14 and 14.1), Class 51 pipelines, certain passenger vehicles (Classes 10 and 10.1) and Schedule V/VI property.
Explore by asset type
- Computer equipment Eligible
- Software Eligible
- Manufacturing and processing equipment Eligible
- General equipment, tools and furniture Eligible
- Commercial vehicles (vans, pickups, work trucks) Eligible
- Heavy trucks and tractors Eligible
- Zero-emission vehicles Eligible
- Patents, licences and acquired IP Eligible
- Clean energy and energy conservation equipment Eligible
- Data network infrastructure Eligible
- Farm machinery Eligible
- Construction and contractor equipment Eligible
- Medical and dental equipment Eligible
- Restaurant and hospitality equipment Eligible
- Media production equipment Eligible
- Aircraft Eligible
- Buildings and additions Excluded
- Goodwill, franchises and licences (Class 14.1) Excluded
- Passenger vehicles (Class 10.1) Likely
- Qualified liquefaction equipment Excluded
Explore by industry
- Construction and trades contractors
- Dental and medical clinics
- Restaurants and hospitality
- Trucking and logistics
- Farms and agriculture
- Manufacturing and processing
- Software and technology companies
- Creative agencies and media production
- Retail stores
- Auto repair and service shops
- Law, accounting and consulting firms
- Real estate and property management
Explore by province
- Alberta
- British Columbia
- Saskatchewan
- Manitoba
- Ontario
- Quebec
- New Brunswick
- Nova Scotia
- Prince Edward Island
- Newfoundland and Labrador
- Yukon
- Northwest Territories
- Nunavut
The Mega Deduction Year-End Playbook
Everything you need to walk into your accountant's office with a plan instead of a question. Built for owner-managed Canadian businesses that expect a profitable 2026.
- Excel purchase planner with every province's rates and every CCA class pre-loaded. Model up to 12 purchases, see the year-one deduction, tax reduction and 10-year comparison for each.
- The 44-page Playbook (PDF): eligibility by asset class, the exclusions, 'available for use' rules, financing vs. leasing, recapture risk, CCPC vs. sole proprietor, and worked examples for 12 industries.
- Accountant brief template (Word): a one-page memo you fill in and send so your accountant can confirm the plan in one email instead of a meeting.
- 30-day action plan for purchases that must be delivered and installed before your fiscal year-end.
$97$47 CAD one-time, instant download
Secure checkout by Stripe. Files delivered immediately after payment. Not tax advice; every plan should be confirmed by your accountant.
Frequently asked questions
What is the Productivity Mega Deduction?
A proposed permanent change to Canada's capital cost allowance (CCA) rules announced on September 15, 2026. It lets businesses deduct 100% of the cost of most depreciable property in the year the property becomes available for use, instead of writing it off over several years.
When does it take effect?
The proposal applies to eligible depreciable property acquired on or after September 15, 2026. The deduction is claimed in the taxation year in which the property becomes available for use.
Is it law yet?
No. It was announced on September 15, 2026 and the Department of Finance has released draft legislative proposals amending the Income Tax Act and the Income Tax Regulations. Those are draft proposals, not enacted law, and no bill implementing the Mega Deduction by name has been identified. The Canada Revenue Agency generally administers announced measures as if enacted, which is why businesses plan around them, but the text can change before it passes.
Which assets qualify?
The government says roughly two-thirds of capital investment will qualify, including computer equipment, software, machinery, vehicles, aircraft, patents, research and development, fibre-optic cable, mining property, pipelines, rail track, bridges and roads.
Which assets are excluded?
Buildings and additions in Classes 1 and 3; Class 14 and 14.1 property such as franchises, licences and goodwill; Class 51 property; certain vehicles in Classes 10 and 10.1 (notably passenger vehicles over the cost cap); and property depreciated under Schedules V and VI of the Income Tax Regulations.
Does it apply to sole proprietors and partnerships?
The draft applies to a taxpayer, and expressly includes partnerships. There is an important restriction: where the taxpayer is neither a corporation nor an eligible partnership, the deduction cannot exceed the income earned from the business or property that uses the asset. In practice a sole proprietor cannot use it to create or deepen a loss, unlike a corporation. An eligible partnership is one whose members are all corporations or other eligible partnerships.