The 2025 Canadian Federal Budget has introduced the Productivity Super-Deduction, a new policy that allows businesses to deduct 100% of the cost of qualifying capital property in the year it’s acquired, rather than over multiple years. This change accelerates tax recovery for investments in manufacturing, construction and trades, helping businesses modernize and grow.
Source: budget.canada.ca
What qualifies under the Super-Deduction?
The Super-Deduction applies to new machinery, equipment and buildings used directly in manufacturing, processing, construction and trade operations. This could allow companies in these industries to fully expense qualifying assets in the first year, which can improve cash flow and ROI.
Businesses looking to benefit from this policy can explore Lenmark’s selection of new manufacturer-grade equipment designed to support advanced production and processing needs.
- Baileigh Industrial: Bending machines, roll formers and drill presses for small to mid-size fabrication shops, with capacity for heavier production when needed.
- SCM: Panel saws, edgebanders, CNC routers and dust collection systems found in cabinet shops and production environments that rely on steady throughput.
- MVD: Press brakes, shears and plasma cutting systems built for metalworking operations handling larger material and higher-volume runs.
What this means for your business
Small trades and construction firms may see an immediate reduction in taxable income, which can improve short-term cash flow and make it easier to upgrade tools and machinery.
Large manufacturers could benefit from significant first-year deductions for high-value equipment, strengthening ROI on large-scale projects and supporting investment in production expansion and modernization.
Put those savings back into the job and earn more.
Eligibility and timing
As stated in the 2025 Canadian Federal Budget Chapter 1 report, the Super-Deduction applies to qualifying property acquired on or after Budget Day (November 4, 2025) that is used for manufacturing or processing before 2030.
For manufacturing or processing buildings, businesses that begin using the building before 2030 can claim a full 100% write-off; those starting in 2030–2031 can claim 75% and in 2032–2033, 55%.
Combine tax incentives with the right equipment for lasting gains
The Productivity Super-Deduction offers Canadian businesses an opportunity to invest in productivity, technology and growth. By leveraging immediate expensing through this incentive and pairing it with the right equipment strategy, companies could recover costs faster, strengthen ROI and position themselves for long-term success.
Explore available models and learn more at lenmark.com or contact our sales team.
Source: 2025 Canadian Federal Budget Chapter 1 report (budget.canada.ca)