Published • loading... • Updated
'Moment We've Been Waiting for': Biz Groups Cheer Ottawa's Tax Deduction Expansion
The permanent tax break lets firms fully write off more assets and is projected to cost $36 billion over five years, government estimates.
- On Tuesday, Prime Minister Mark Carney announced the Productivity Mega Deduction at the Canada Investment Summit in Toronto, a permanent tax reform designed to attract global capital across diverse sectors.
- Expanding the 2025 Productivity Super-Deduction, the policy increases eligible assets from about 15 per cent to two-thirds, aiming to reduce Canada's marginal effective tax rate to 6.4 per cent from 13 per cent.
- With a $36 billion cost over five years, government modelling projects $8.5 billion in annual support will generate up to $22 billion in economic output. The initiative covers assets including oil pipelines, fibre-optic cable, and rail.
- Carney also unveiled plans for private investment concessions at major airports to modernize facilities. Business groups applauded the overhaul, while Greenpeace Canada strategist Keith Stewart condemned the fossil fuel incentives as 'climate vandalism'.
- Finance Canada will now prioritize advanced tax rulings for investments exceeding $1 billion to provide investors greater certainty, aiming to catalyze $1 trillion in investment over five years.
Insights by Ground AI
19 Articles
19 Articles
Businesses call PM Carney’s expansion of tax incentive ‘moment we’ve been waiting for’
The federal government is expanding a tax incentive to cover a broader array of assets as it aims to drive $1 trillion of new investment in a move roundly applauded by business groups.
·Toronto, Canada
Read Full Article
Canadian government introduces mega-deduction tax measure to spur more investment
The productivity mega-deduction will allow companies to expense the total cost of new investments across a number of sectors, including machinery, equipment, clean energy, zero-emission vehicles and more.
·Ottawa, Canada
Read Full Article
Ottawa includes fibre optic cables, pipelines, software and roads in deductible assets.
·Montreal, Canada
Read Full Article
Prime Minister unveils $36 billion tax 'mega deduction' to boost major industrial investments
Mark Carney, opening the Canada Investment Summit in Toronto, said the new incentive would create "the most tax-competitive country in the G7 for new business" and unlock $22 billion in economic output and 80,000 jobs a year.
·Vancouver, Canada
Read Full ArticleCoverage Details
Total News Sources19
Leaning Left16Leaning Right0Center3Last UpdatedBias Distribution84% Left
Bias Distribution
- 84% of the sources lean Left
84% Left
L 84%
C 16%
Factuality
To view factuality data please Upgrade to Premium
