Canada has proposed a 100% immediate write-off for eligible business aircraft under the Productivity Mega Deduction, allowing businesses to deduct an aircraft's full cost in the year it becomes available for use instead of depreciating it over several years under standard tax rules.

Two conditions apply. The aircraft must be acquired on or after 15 September 2026, and it must be available for use, meaning ready to fly for the business. If an aircraft is still being completed or refurbished at year-end, the deduction generally does not apply until it is ready. Used aircraft can also qualify, subject to specific conditions: the aircraft cannot have been previously owned by the taxpayer or a non‑arm's‑length person, and it cannot have been acquired through certain tax-deferred transfers.

Harlan Simpkins, president and CEO of the Canadian Business Aviation Association, says: “This is a significant advocacy win for CBAA and our members. We consistently strive for policies that drive investments and strengthen Canada's competitiveness. Including aircraft in the Productivity Mega Deduction is a solid initiative for business aviation opportunities.”

Simpkins adds: “This announcement shows what we can achieve by unifying our voice and working together. CBAA will continue working with government and our industry partners to ensure the vital contribution of business aviation is recognised in the policies that shape our sector.”

CBAA said it will monitor implementation of the measure and keep members informed as further details become available.