Canada offers permanent tax incentive on capital investment as Carney lures investors

> TORONTO, Sept 15 (Reuters) - Canada will let businesses immediately write off ‌the cost of most new capital investments for tax purposes, Prime Minister Mark Carney said on Tuesday, unveiling a measure aimed at strengthening the economy and drawing more foreign investment.

> Carney is welcoming dozens of global investors to Toronto this week, hoping to lure investments for more than 160 projects that he says are key to steering Canada's economy through a trade war with ​the United States.

> Carney said two-thirds of all assets would now qualify for the benefit, citing sectors such as mining, oil and gas pipelines, and ​software.

> "The effect is straightforward. When you invest in Canada, you can deduct substantially more of that investment immediately," he said ⁠at the summit.

> As a result, Canada’s marginal effective tax rate on new business investment will fall 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, the government said in a statement.

> The new measure, called the Productivity Mega Deduction, ​expands a previous tax incentive introduced in the budget a year ago and makes it permanent.

> The Canadian Association of Petroleum Producers said the measure “closes a significant competitive gap” with the United States on expensing capital costs.

https://www.reuters.com/business/canada-seek-private-investment-major-airports-says-carney-2026-09-15/