Making Canada More Competitive

Our government is taking important steps to create a more competitive environment for businesses, attract investment and strengthen our economy for the future. At the first Canada Investment Summit, Prime Minister Mark Carney announced the new Productivity Mega Deduction, building on the Productivity Super-Deduction introduced in Budget 2025.

This new measure will allow businesses to immediately deduct the cost of a much broader range of investments, expanding the assets eligible for immediate expensing from roughly 15 per cent to more than 65 per cent. Eligible investments include fibre optic cable, mining property, oil and gas pipelines, software, research and development, computer equipment, aircraft and vehicles, patents, rail track, bridges and roads.

To reinforce Canada’s tax advantage, the federal government is also making immediate expensing permanent, allowing businesses to recover eligible investment costs sooner. This will lower the after-tax cost of investing and help boost capital investment across Canada. As a result, Canada’s marginal effective tax rate on new business investment will fall from roughly 13 per cent to 6.4 per cent, making it the lowest of any major economy in the world and less than half the rate in the United States.

These measures are part of a broader effort to strengthen Canada’s investment climate and encourage businesses to build, expand and innovate here at home. For businesses in Saint Léonard–Saint Michel and across Canada, creating the right conditions for investment means supporting productivity, encouraging innovation and helping Canadian companies grow and compete.

Canada has the talent, resources and determination to succeed. By investing in our businesses, supporting innovation and creating the right environment for growth, we can build an economy that creates good jobs, strengthens our communities and delivers opportunity for generations to come.