CIAC welcomes the federal government’s proposed Productivity Mega Deduction

September 16, 2026

The Chemistry Industry Association of Canada (CIAC) welcomes the federal government’s proposed Productivity Mega Deduction as an important step toward strengthening Canada’s ability to attract investment, modernize manufacturing and improve productivity. 

“Canada needs to compete for investment with policies that give companies confidence to build here,” said Greg Moffatt, President and CEO of CIAC. “Permanent expensing sends a clear signal that Canada wants manufacturers to invest, modernize and grow over the long-term. For chemistry and plastics companies making investment decisions about their Canadian operations, predictability and clarity matter.” 

CIAC encourages the government to move quickly on implementation and pair competitive tax treatment with practical improvements to regulatory approvals and transportation reliability.  

“Canada needs to be both an attractive place to invest and a competitive place to operate. Today’s announcement is a good step in increasing predictability and clarity for companies.”