Budget 2026 · Chapter 1 · pp. 109–154
Canada's Investment Supercycle
The investment chapter. Its cost is dominated by the Productivity Mega Deduction, a permanent full write-off for a wide range of business assets, with electricity, nuclear, critical minerals and forestry behind it.
Chapter 1 in numbers
- Net impact, five years
- $52.0B
- Of which capital
- $48.5B
- Measures
- 26
- With a cost line
- 20
1.1 Making Canada the best place to invest
$38.0B over five years
- Kickstarting Canada's Investment Supercycle with the Productivity Mega Deduction$36.1BTax measureBusinessesTradesInvestment
- Boosting innovation and commercialisation$936MTax measureBusinessesInvestment
- Backing Canada's next generation of entrepreneurs$715MTax measureBusinessesInvestment
- Unleashing billions for Canadian businesses with the Canada Investment Summit$181MProgram spendingBusinessesInvestment
- Helping Canadian innovators scale at home$94MProgram spendingLoans, equity or financingBusinessesInvestment
- Mobilising private investment to modernise Canada's airports$42MProgram spendingInvestmentInfrastructure & transportPublic work
Announced without a cost line
- Rewarding innovation by helping Canadian ideas and talent succeedno cost lineNo cost line
1.2 Building a cleaner, more competitive economy
$9.72B over five years
- Powering Canada Strong$8.75BProgram spendingTradesInvestmentEnergy & resourcesPublic work
- Expanding Canada's electric vehicle charging infrastructure$553MProgram spendingTradesEnergy & resourcesInfrastructure & transportPublic work
- Growing Canada's nuclear advantage and powering our electricity future$419MProgram spendingTradesEnergy & resourcesPublic work
1.3 Unlocking the full potential of Canada's natural resources
$3.56B over five years
- Strengthening Canada's forest sector$2.22BProgram spendingBusinessesEnergy & resources
- Bringing critical minerals from mine to market$1.35BProgram spendingTradesInvestmentEnergy & resources
1.4 Building a net-zero economy
$185M over five years
- Advancing Canada's climate competitiveness$185MProgram spendingBusinesses
Announced without a cost line
- Mobilising sustainable investmentno cost lineNo cost line
1.5 Strengthening competition
$1M over five years
- Advancing the digital transformation of the financial system$1MProgram spendingBusinessesAI & digital
Announced without a cost line
- Advancing the Whole-of-Government Competition Planno cost lineNo cost lineBusinesses
- Increasing competition in the telecommunications sectorno cost lineNo cost lineBusinesses
- Increasing competition in the financial sectorno cost lineNo cost lineLoans, equity or financingBusinesses
- Unlocking infrastructure investment and economic growthno cost lineNo cost lineInvestmentInfrastructure & transport
Additional investments
$527M over five years
- NRC IRAP Clean Technology renewal$298MProgram spendingBusinessesEnergy & resources
- Polar Knowledge Canada$105MProgram spendingInfrastructure & transportPublic work
- Supporting economic development in the North$71MProgram spendingBusinessesIndigenous communities
- Geo-mapping for energy and minerals (GeoNorth)$34MProgram spendingEnergy & resourcesInfrastructure & transport
- Arctic offshore oil and gas governance$11MProgram spendingEnergy & resourcesInfrastructure & transport
- Canada's standards-setting and accreditation system$6MProgram spendingBusinesses
- Supporting the Canadian Infrastructure Council$2MProgram spendingInfrastructure & transport
The chapter cost table
| Section | 2026-27 | 2027-28 | 2028-29 | 2029-30 | 2030-31 | Total |
|---|---|---|---|---|---|---|
| 1.1 Making Canada the best place to invest | 2,044 | 9,170 | 9,266 | 7,455 | 10,089 | 38,024 |
| 1.2 Building a cleaner, more competitive economy | — | 788 | 2,562 | 3,105 | 3,263 | 9,718 |
| 1.3 Unlocking the full potential of Canada’s natural resources | −11 | 936 | 827 | 887 | 925 | 3,564 |
| 1.4 Building a net-zero economy | — | 25 | 30 | 55 | 75 | 185 |
| 1.5 Strengthening competition | 0 | 0 | 0 | 0 | 0 | 1 |
| 1.x Additional investments – Canada’s Investment Supercycle | — | 118 | 161 | 189 | 59 | 527 |
| Net fiscal impact | 2,033 | 11,037 | 12,845 | 11,691 | 14,412 | 52,018 |
| Of which, capital investment | 2,029 | 10,388 | 12,070 | 10,794 | 13,227 | 48,507 |