BEAUPRÉ, QC, Oct. 9, 2026 /CNW/ — Canada has what the world wants: abundant energy and critical minerals, the most educated workforce in the world, access to 1.5 billion consumers through our free trade agreements, and the strongest fiscal position in the G7. We are building on these advantages to make Canada the best place in the world to invest, build and grow.
Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant, joined with Québec International to meet with Quebec company Ferreol Skis and visit its innovation laboratory in Beaupré, Quebec. The visit sought to highlight how the federal government is helping Quebec’s small and medium-sized businesses invest in new equipment and adopt new technology to become more competitive on the global stage.
At the centre of this work is the Productivity Mega Deduction, one of the most significant changes to Canada’s business tax system in half a century. It will allow businesses of all sizes, like Ferreol Skis, to immediately deduct the full cost of a broad range of investments, giving them a powerful incentive to build, expand and create good jobs in communities across Canada.
This game-changing new tax incentive will increase the amount of assets eligible for immediate expensing from roughly 15% of assets to more than 65%, including fibre-optic cable, greenhouses, mining property, oil and gas pipelines, software, research and development, computer equipment, aircraft and vehicles, patents, rail track, bridges, and roads. The federal government is also making immediate expensing permanent, giving businesses the long-term certainty they need to make major investment decisions.
These changes will reduce the cost of investing in Canada and lower the marginal effective tax rate on new business investment from roughly 13% to 6.4%–the lowest of any major economy in the world and less than half the rate in the United States.
By cutting taxes on new investment, the government is setting the conditions for a Canadian investment supercycle–one that will drive growth, productivity and prosperity for generations.
Quotes
“SMEs drive the Quebec economy. In today’s business climate, they need stability, predictability and support to grow and become more competitive. The new Productivity Mega Deduction will allow businesses like Ferreol Skis to purchase equipment and deduct a range of costs in the first year. This means we are not only cutting taxes on new investment, but we are also enabling companies of any size to modernize their facilities, create high-quality jobs and boost their production capacity. That is how we build a Canada that has the means to achieve its ambitions.”
The Honourable Joël Lightbound
Minister of Government Transformation, Public Works and Procurement and Quebec Lieutenant
“This is one of the most significant changes to Canada’s business tax system in half a century, and a game changer for investment in this country. With the Productivity Mega Deduction, we are reinforcing Canada’s position as the most competitive country in the G7 for new business investment and setting the conditions for an investment supercycle. This is about unlocking investment at a scale we have not seen in generations, so businesses can build, expand and grow in Canada– creating high-paying careers and building a stronger, more productive and more resilient economy.”
The Honourable François-Philippe Champagne
Minister of Finance and National Revenue
“Canada is positioning itself as a top choice for setting up and growing a business. With the Productivity Mega Deduction, small companies like ours have an incentive to invest more. Whether the goal is to increase exports, create value in a sovereign defence supply chain or create new good jobs, this supportive business environment drives companies to focus on productivity, innovation and growth plans.”
Jonathan Audet
Founder and CEO, Ferreol Skis
“Productivity is the key to our businesses’ competitiveness. Every day, Québec International provides the region’s SMEs with guidance on their innovation, growth and export plans. Ferreol Skis is an excellent example of this. By encouraging investment in equipment, technology and strategic assets, the Productivity Mega Deduction is giving them concrete leverage to develop faster, increase their presence in international markets and create more high-quality jobs.”
Maude Mercier-Larouche
Senior Director, Public and Corporate Affairs, Québec International
Quick facts
- Over five years, the government’s capital investments and incentives in support of third parties, totalling about $280 billion, are expected to enable more than $1 trillion in total investment from public, private and institutional partners.
- Canada consistently ranks among the top destinations for foreign direct investment confidence, with a AAA credit rating, the lowest net debt-to-GDP ratio in the G7, and the number one ranking among G7 countries for banking stability.
- Canada has the best tax treatment for new business investment in the G7.
- Under Canada’s capital cost allowance system, taxpayers deduct the cost of depreciable assets such as machinery and equipment over time. Immediate expensing would allow them to deduct the full cost of an eligible investment in the first year the asset becomes available for use.
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SOURCE Government of Canada
