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MCAC has long-advocated for this measure to help contractors invest, innovate, and build the infrastructure Canada needs
OTTAWA, ONTARIO, September 15, 2026 – The Mechanical Contractors Association of Canada (MCAC) is applauding today’s announcement by Prime Minister Mark Carney of the new Productivity Mega Deduction, a landmark tax measure designed to accelerate business investment and strengthen Canada’s long-term economic competitiveness. The new policy expands immediate expensing to a significantly broader range of capital investments and makes the measure permanent, creating stronger incentives for businesses to invest in productivity-enhancing equipment, technology, and innovation.
MCAC welcomed the announcement, noting that expanding accelerated depreciation and investment incentives for construction-related businesses has been a central advocacy priority for the association. Earlier this year, 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.
“Today’s announcement is a significant win for Canada’s major trade contractors and for the broader Canadian economy,” said Tania Johnston, MCAC Chief Executive Officer. “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.”
In its 2026 pre-budget submission and subsequent appearance before the Standing Committee on Finance, MCAC emphasized that construction firms face substantial upfront capital costs that can delay or discourage investment in technologies capable of improving efficiency, reducing project timelines, and increasing output. The association argued that faster capital cost recovery would help contractors modernize operations, scale capacity, and respond to growing demand across the country.
Mechanical and electrical contractors are uniquely positioned at the heart of Canada’s economy. MCAC members install and maintain the critical systems that power homes, hospitals, schools, commercial buildings, manufacturing facilities, and major infrastructure projects. The sector supports more than 440,000 direct jobs and contributes over $63 billion annually to Canada’s GDP.
“Mechanical and electrical contractors are the straw that stirs the drink when it comes to Canada’s economy,” added Johnston. “Whether the goal is building more housing, modernizing hospitals, strengthening our energy systems, supporting manufacturing, or developing major infrastructure, none of it happens without the contractors who install and maintain the systems that make those projects function. When contractors have the tools and resources to invest, Canada builds faster, builds better, and builds more competitively.”
MCAC believes the Productivity Mega Deduction 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.
“This measure recognizes that productivity growth is not achieved through policy alone; it requires investment,” said Johnston. “The government’s decision to make immediate expensing available across a broader range of assets will help unlock private-sector investment, accelerate innovation, and strengthen the ability of contractors to deliver the nation-building projects that Canadians are counting on.”
MCAC also noted that today’s announcement aligns closely with the federal government’s objective of building a stronger, more resilient and more independent Canadian economy by incentivizing long-term business investment and productivity growth.
“As Canada works to strengthen its economic resilience and competitiveness, construction must be part of the solution,” said Johnston. “We commend the government for listening to industry recommendations and taking meaningful action. Today’s announcement will help ensure that Canada’s contractors have the confidence and capacity to invest, innovate, and Build Canada Now.”
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