Ottawa, ON — The Mechanical Contractors Association of Canada (MCAC) has thrown its support behind the new productivity mega deduction announced by Prime Minister Mark Carney.
Building on the productivity super-deduction, the productivity mega deduction is a tax measure that provides expensing for a broad range of depreciable property permanently.
This new tax measure allows taxpayers to fully write off the cost of an investment in the year that it becomes available for use, creating the conditions for an extended period of higher investment through a broader range of capital investments, including productivity-enhancing equipment, technology, and innovation.
“Today’s announcement is a significant win for Canada’s major trade contractors and for the broader Canadian economy,” said Tania Johnston, CEO of MCAC. “For months, MCAC has been advocating for measures that make it easier for contractors to invest in new equipment, technologies, prefabrication, robotics, digital tools, and other productivity-enhancing innovations. We are pleased to see the federal government recognize the critical role that investment plays in increasing Canada’s productive capacity and delivering the housing, infrastructure, institutional, energy, and industrial projects our country needs.”
The MCAC supports this announcement, as expanding accelerated depreciation and investment incentives for construction-related businesses has been a central advocacy priority for the association. Earlier this year, the MCAC presented to the House of Commons Standing Committee on Finance and specifically called on the federal government to expand the Productivity Super Deduction to explicitly include construction and productivity-enhancing investments.
Additionally, the MCAC believes this new tax measure will encourage businesses to adopt advanced construction technologies, modern equipment, and innovative delivery methods that improve productivity while helping address labour and capacity challenges facing the construction sector.