Vancouver, B.C. — The Mechanical Contractors Association of B.C. (MCABC) joins the Mechanical Contractors Association of Canada (MCAC) in applauding Prime Minister Mark Carney‘s announcement of the Productivity Mega Deduction, a permanent tax measure that will allow businesses to immediately expense investments in eligible machinery, equipment, technology, and other capital assets.
The previous Productivity Super-Deduction, announced in Budget 2025, introduced immediate expensing for a select range of investments, but did not explicitly include construction as an eligible category. The new Mega Deduction significantly expands the range of eligible investments and explicitly includes construction as an eligible category
The new measure applies to assets acquired on or after September 15, 2026 and reduces the Canadian construction sector’s marginal effective tax rate from 18.3% to 13%, creating stronger incentives for Mechanical Contractors to invest in modern design, fabrication, and delivery tools that enhance productivity.
For example, if a contractor purchases an eligible piece of equipment for $75,000 and the equipment becomes available for use, the full $75,000 can be deducted against taxable income for that year.
“A deduction that can be realized in the same tax year enables Contractors to recoup capital costs faster and reinvest in their businesses and their industry—encouraging investments that build capacity, modernize operations, create efficiencies, and improve long-term competitiveness,” said MCABC CEO, Kim Barbero.
PM Carney‘s announcement comes following MCAC‘s Day on the Hill in April, where leaders from across Canada’s mechanical contracting industry, including representatives from MCABC, came together to advocate for federal tax policy that supports industry modernization.
Meanwhile, in B.C., MCABC has called for similar targeted tax incentives for prefabrication and digital construction tools, a call that received published acknowledgement in the Select Standing Committee on Finance & Government Service’s Budget 2027 Consultation Report.
For B.C.’s mechanical contractors, today’s announcement is an important step toward improving access to capital at a time when our industry is being asked to deliver more housing and infrastructure projects and businesses are facing substantial upfront capital costs.
Learn more by reading MCAC‘s and the Government of Canada‘s news releases:
About MCABC
The Mechanical Contractors Association of B.C. (MCABC) is the only dedicated representative for the mechanical contracting industry in British Columbia—the industry with the largest share of skilled trades workers in the construction sector. As the connection to industry excellence for our diverse membership, we deliver education and professional development programs that enable high standards of practice and business success. Through advocacy and strong industry partnerships, we influence policy and regulatory development at all levels of government, advancing the interests of our industry and improving its ability to meet B.C.’s growing infrastructure demand.
Media Contact
Conor Brendan Dunne
Manager, Communications & Stakeholder Engagement
cdunne@mcabc.org
(604) 205-5058
