SEPTEMBER 15, 2026 / EDMONTON, AB – New federal tax measures announced today will reduce Canada’s marginal effective tax rate on new business investment to 6.4 per cent, while allowing businesses to immediately deduct 100 per cent of the cost of a much broader range of eligible investments, including infrastructure and assets relevant to major projects in Alberta’s Industrial Heartland.
Prime Minister Mark Carney announced the new Productivity Mega Deduction at the Canada Investment Summit in Toronto. The measure builds on the Productivity Super-Deduction introduced in Budget 2025, which allows businesses to immediately deduct 100 per cent of the cost of eligible new investments.
Under the new measure, the share of business assets covered by the incentive will increase from roughly 15 per cent to more than 65 per cent.
The federal government says the changes will reduce Canada’s marginal effective tax rate on new business investment from approximately 13 per cent to 6.4 per cent, the lowest of any major economy and less than half the rate in the United States.
“Canada has what the world wants,” said Prime Minister Mark Carney. “We’re an energy superpower with the most educated workforce in the world and rock-solid fiscal strength. We are capitalising on these strengths and making Canada the best place in the world to invest. With the lowest marginal effective tax rate in the G7 by an order of magnitude, we are sending a clear message to the world: Canada is building big. Build with us.”
The expanded list of eligible assets includes major infrastructure and capital assets such as oil and gas pipelines, mining property, fibre-optic cable, software, research and development, computer equipment, rail track, bridges and roads, as well as aircraft and vehicles.
The federal government is also making immediate expensing permanent, allowing businesses to recover eligible investment costs sooner and reducing the after-tax cost of building new projects.
The announcement comes as Alberta’s Industrial Heartland continues to see major capital-intensive projects advance across energy, petrochemicals, power generation, data centres, pipelines, and other value-added industries. More than $50 billion has already been invested in the region, with another $30 billion currently under construction.
The expanded eligibility includes several types of infrastructure and assets that are part of large-scale industrial development in the Heartland, including pipelines, power and digital infrastructure, equipment, and technology.
The federal government says the measures form part of a broader effort to catalyze $1 trillion in new investment in Canada over the coming years.
Read the news release here.
About Alberta’s Industrial Heartland
Alberta’s Industrial Heartland is Canada’s largest hydrocarbon processing region and most advanced carbon sequestration hub. With $50 billion in existing capital investment and more than 40 companies, AIH provides fuels, fertilizers, power, petrochemicals, hydrogen, and more to consumers around the world. Explore the people, partnerships, and potential behind Alberta’s Industrial Heartland.