No. As of October 12, 2026, it is a Department of Finance Canada proposal, released with draft legislation on September 15, 2026. Parliament still has to pass it, and the details can change.

Can you write off 100% of new equipment in year one?

Q: Can I create a loss with it as a self-employed person?

Generally, no. The proposed rules restrict the ability of individuals, and partnerships with members who are individuals, to create or increase a loss with this deduction.

The news in short

On September 15, 2026, the Department of Finance Canada proposed the Productivity Mega Deduction. The idea: let businesses fully write off the cost of most depreciable property, such as equipment and machinery, in the year it becomes available for use. It would apply to property acquired on or after September 15, 2026, and it would be permanent.

One point first: this is a proposal, not law yet. Draft legislation was released the same day, but it still has to be passed, and the details can change.

What changes compared to today

Normally, the cost of equipment is not deducted all at once. As the Canada Revenue Agency explains in Guide T4002, you deduct it over several years through capital cost allowance (CCA). Each year you deduct only part of the cost, depending on the property's class.

Under the proposal, eligible equipment bought and put to use in 2026 could be deducted in full on the 2026 return instead of being spread out. The tax saving comes sooner. The Finance backgrounder does not mention a dollar cap.

What would be excluded

Not every asset qualifies. According to the Finance backgrounder, exclusions include:

buildings in Classes 1 and 3;
property in Classes 14 and 14.1, such as franchises, licences and goodwill;
certain vehicles in Classes 10 and 10.1;
Class 51 property and property under Schedules V and VI of the Regulations.

Property that does not qualify would remain eligible for the existing Accelerated Investment Incentive.

Self-employed or incorporated?

The proposed rules restrict the ability of individuals, and partnerships with members who are individuals, to create or increase a loss with this deduction. For a self-employed person, the deduction would generally be limited to the income of the business that uses the property.

What we do

Before a major purchase, we look at the asset's class, the purchase date and the date it is put to use with you, and at what the measure would mean for your tax if it passes. We keep the invoices and dates on file so the deduction is well supported when the time comes.