The Saskatchewan Chamber of Commerce welcomes today’s announcement by Prime Minister Mark Carney introducing the new Productivity Mega Deduction. This measure expands immediate expensing eligibility from roughly 15% of capital assets to more than 65%, including mining property, oil and gas pipelines, research and development, computer equipment, aircraft and vehicles, patents, fibre-optic cable, rail track, bridges, and roads. This is intended to lower the after-tax cost of new investment and boost capital investment across Canada.

The inclusion of infrastructure assets is particularly important for Saskatchewan, as businesses continue to identify transportation bottlenecks and infrastructure limitations as obstacles to export growth and competitiveness. Immediate expensing for infrastructure assets under the new Productivity Mega Deduction can help encourage investment in the infrastructure needed to address these constraints and aligns with the Chamber’s calls for stronger investment in transportation corridors, northern infrastructure, trade-enabling assets, and regional connectivity.

The change to investment taxation has significant potential for Saskatchewan, given its strengths in resource, energy, infrastructure, and export-oriented industries. It is a welcome signal to Saskatchewan businesses that Canada is prepared to compete aggressively for investment at a time of heightened global uncertainty, increasing protectionism, and growing competition for capital. The Chamber has consistently advocated for policies that position Canada as a more attractive place to invest, build, innovate, and expand. Today’s announcement is a positive step in that direction.

Realizing the full potential of the Productivity Mega Deduction will require continued progress on the broader conditions that influence investment decisions. The Chamber has repeatedly emphasized that excessive regulatory complexity, lengthy permitting timelines, duplication between jurisdictions, and uncertainty around approvals remain significant barriers to investment. We applaud the federal government’s efforts to address these challenges and look forward to the implementation of positive change.

The Productivity Mega Deduction will be most effective when accompanied by faster project approvals, regulatory efficiency, and coordinated workforce development. Together, these measures can help create the conditions for businesses to invest with confidence and advance projects that strengthen Saskatchewan and Canada’s long-term competitiveness.

The Chamber looks forward to reviewing the details of the Productivity Mega Deduction and working with the federal government to ensure the measure delivers meaningful benefits for Saskatchewan employers, communities, and industries while strengthening Canada’s long-term economic competitiveness.