Canada’s Department of Finance announced the Productivity Mega Deduction on October 1. Businesses could deduct the full cost of a wider range of assets in the first year they are available for use. The government says the eligible share would rise from roughly 15% to more than 65%.

Eligible examples include software, research and development, computer equipment, greenhouses, mining property, pipelines, aircraft and infrastructure. The government also plans to make immediate expensing permanent. Its estimate that the marginal effective tax rate on new investment could fall from about 13% to 6.4% is a government projection.