Ontario announced a proposed expansion of business investment writeoffs on October 28, saying its provincial share of the federal Productivity Mega Deduction would provide more than $8 billion in tax relief over five years.

For eligible Ottawa businesses buying equipment or technology, the proposal could change how quickly investment costs are deducted. Ontario says eligible assets would include software, fibre-optic cable, patents, machinery and equipment, among other categories. Implementation depends on passage of federal legislation.

Finance Canada’s September 15 backgrounder proposes full deductions in the year eligible assets become available for use, covering qualifying property acquired from September 15, 2026. Exclusions include most buildings, goodwill and certain vehicles; eligibility restrictions also apply to previously used property.

The announcement does not make every business purchase eligible. Ottawa owners considering investments can consult the federal proposal’s asset rules and watch for further provincial details in Ontario’s Fall Economic Statement on October 29.

Sources: Ontario announcement, October 28; Finance Canada proposal and eligibility details, September 15.