Budget 2026 bets on 'investment supercycle' tax breaks

Prime Minister Mark Carney's second budget promises tax breaks meant to kickstart an "investment supercycle" as Canada seeks stronger productivity, growth and sovereignty amid the U.S. trade war. The supercycle is one of three main pillars of Budget 2026, tabled Thursday. Finance Minister François-Philippe Champagne said benefits will show in coming months and for a long time. The Productivity Mega Deduction lets firms immediately write off a broad share of new capital assets, cutting the marginal tax rate on new investment from 13 to 6.4 per cent at a $36-billion five-year cost. A capital-gains incentive aims to help Canadian growth.