Canada Announces Mega Deduction Tax Incentive

Prime Minister Mark Carney announced the Productivity Mega Deduction at the Canada Investment Summit in Toronto. The new tax incentive allows businesses to immediately deduct the full cost of most new capital investments, increasing covered assets from 15 to 65 percent. The government claims this will slash Canada's marginal effective tax rate on new business investment from 13 to 6.4 percent, the lowest among major economies.