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ARTICLE · 17 DECEMBER 2025

Full Speed Ahead: What Canada's New Immediate Expensing Means For Manufacturers

Miller Thomson
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If your business has been considering expanding production, upgrading equipment, or building new facilities...

CanadaTax
Matteo Loconte
Matteo Loconte
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If your business has been considering expanding production, upgrading equipment, or building new facilities, now may be the time to move forward. In the 2025 Federal Budget ("Budget 2025"), the Federal Government introduced a new measure that allows Canadian businesses to deduct 100% of the cost of eligible buildings and equipment in the first taxation year that eligible property is used for manufacturing or processing. This temporary immediate expensing measure is designed to make it easier for businesses to invest in modern facilities and equipment.

What is changing?

Under Budget 2025, businesses can now immediately deduct the full cost of eligible manufacturing and processing ("M&P") buildings acquired on or after November 4, 2025 ("Budget Day 2025"), provided that the building is first used for M&P activities before 2030. To be deemed an eligible M&P building, at least 90% of the building's floor space must be used to manufacture or process goods for sale or

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