Important: this is a proposed federal measure
The federal government published draft legislative proposals on September 15, 2026. A proposal can change before it becomes law, and the details that matter for any one business are in the draft rules, not the headline. Until the legislation passes, treat everything below as what has been proposed. We will update this page when the status changes.
Who this affects
Any business that buys equipment or other depreciable property. A restaurant replacing refrigeration. A creator buying cameras and computers. A food producer buying commercial equipment. A trucking company, a shop, an office. Sole proprietors and corporations.
What has been proposed
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Immediate expensing, made permanent. The full cost of eligible depreciable property could be deducted in the year it becomes available for use. Today most assets are deducted a percentage at a time under the capital cost allowance rules.
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A broad range of property. The government says roughly two-thirds of capital investment would qualify: machinery, equipment and most other depreciable assets.
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From September 15, 2026. The proposal applies to eligible property acquired on or after that date. Property bought before it stays under the existing rules.
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Important exclusions. Buildings in the main building classes. Goodwill, franchises, licences and similar intangible property. Pipelines. Certain vehicles, including passenger vehicles in the classes that already have special limits. Excluded property would continue to get the enhanced first-year deduction under the existing Accelerated Investment Incentive, where that applies.
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A limit for individuals. As with the temporary 2021 immediate expensing rules, the proposal restricts an individual’s ability to use the deduction to create or increase a loss. A sole proprietor cannot buy equipment to produce a loss that wipes out other income.
What it means in practice
Restaurant. A new oven or walk-in cooler bought after September 15, 2026 could be deducted in full in that year, if the proposal passes as drafted.
Creator. Cameras, lighting and a computer used for the business: the same.
Food producer. A commercial mixer, a blast freezer, packaging equipment: the same.
Transportation. Trucks are a different question. Some vehicles are in the excluded classes and some are not. Do not assume every vehicle qualifies. Ask before you sign.
In every case the property must actually be used in the business and be available for use in the year. The deduction only helps if there is income to apply it against. A deduction this year also means no deduction for that asset in later years.
One thing most people do not realize
A 100% deduction does not mean the government paid for the equipment. It means the cost is deducted this year instead of over several years. The tax saved is the cost multiplied by your tax rate, and only if there is income to deduct it against. A $20,000 machine in a small corporation paying tax at a low rate saves a few thousand dollars of tax. The saving arrives this year rather than spread out. The other $17,000 or so is still your money spent.
What to bring if you want help
- What you plan to buy, the price, and the expected delivery date
- Whether it is new or used, and whether it will be financed
- Last year’s return for the business, so we can see the income the deduction would apply against
- Whether the business is a sole proprietorship or a corporation
What this guide does not cover
Provincial treatment, the detailed class-by-class rules in the draft legislation, and interactions with other incentives. Those are the parts most likely to change before passage. We check the final rules against your purchase before anything is claimed.
From the Rex Tax desk
Every time a measure like this is announced, we get calls about buying something in December for the write-off. The question we ask back is simple: would you buy it anyway? If yes, the timing may help. If no, a deduction never turns a bad purchase into a good one.
Official sources
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. Rules described are those in effect from September 15, 2026. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.