# Canadian federal tax incentive expansions

> Live situation record from CLSTR: https://clstr.news/situations/canadian-federal-tax-incentive-expansions
> Updated: 2026-09-15T19:34:12.000Z. Sources: 18. Developments: 2.

The Canadian government has introduced several tax-related measures aimed at attracting large-scale private capital and increasing national competitiveness. Initially, the Canada Revenue Agency implemented a priority system for Advance Income Tax Rulings (AITR). Under this program, requests connected to investments of C$1 billion or more will receive priority to provide investors with “clarity and certainty” for major projects. While the agency maintains a 90-business-day standard for other requests, this new system focuses on projects aligned with national priorities such as infrastructure, housing, and the clean economy. Following this, the federal government announced an expansion of the “productivity mega deduction.” This initiative seeks to drive C$1 trillion in new investment by expanding the scope of immediate expensing from approximately 15 percent to two-thirds of capital assets. Qualifying investments now include software, research and development, aircraft, vehicles, and various infrastructure. The government stated this expansion is intended to reduce the marginal effective tax rate from 13 percent to 6.4 percent, aiming to make Canada the most tax-competitive advanced economy in the G7. At the inaugural Canada Investment Summit in Toronto, Prime Minister Mark Carney further detailed these economic measures, noting the expansion of the Productivity Mega Deduction is estimated to cost approximately $36 billion over five years. The summit saw nearly $500 billion in announced investment commitments, including a potential $52.5-billion expansion of a Bell Canada AI data centre in Saskatchewan. Additionally, the government announced plans to open Canada’s four largest airports—Toronto, Vancouver, Montreal, and Calgary—to private investment, while maintaining federal ownership of the land and assets. During the summit, major Canadian banks also pledged approximately $325 billion in new financing for businesses and infrastructure.

## Claims

- The federal government announced the 'Productivity Mega Deduction' during the Canada Investment Summit. (corroborated by 8 sources)
- Prime Minister Mark Carney set a target of $1 trillion in total investment over five years. (corroborated by 7 sources)
- The government plans to open Canada's four largest airports to private investment. (corroborated by 4 sources)
- The Productivity Mega Deduction will apply to assets like mining property, pipelines, and software. (corroborated by 3 sources)
- The Canada Investment Summit produced nearly $500 billion in new investment commitments. (corroborated by 2 sources)
- The Productivity Mega Deduction aims to reduce the marginal effective tax rate to 6.4 per cent. (single source)
- The expansion of the tax deduction is estimated to cost $36 billion over five years. (single source)
- Bell Canada is considering a $52.5-billion expansion of an AI data centre in Saskatchewan. (single source)

## Timeline

### 2026-09-15: Canada Investment Summit: PM Carney unveils $1 trillion target and new tax incentives

At the Canada Investment Summit, PM Mark Carney announced a $1 trillion investment target, featuring the ‘Productivity Mega Deduction’ tax incentive and plans to open major airports to private investment.

16 sources. https://clstr.news/cluster/canada-expands-productivity-tax-deduction-to-drive-investment

### 2026-09-15: Canada prioritizes tax rulings for investments over C$1 billion

Canada is prioritizing Advance Income Tax Rulings for investments of C$1 billion or more to provide large-scale investors with greater legal certainty and encourage major domestic projects.

2 sources. https://clstr.news/cluster/canada-prioritizes-tax-rulings-for-investments-over-c1-billion

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Cite as: Canadian federal tax incentive expansions. CLSTR, https://clstr.news/situations/canadian-federal-tax-incentive-expansions