RAC welcomes bold federal action to unlock investment in Canada

Ottawa, Ontario – The Railway Association of Canada (RAC) welcomes the Government of Canada’s announced intention to introduce legislation that would extend permanent immediate expensing to eligible assets in the rail and other transportation supply chain industries.

While RAC is still reviewing the details of the federal government’s new Productivity Mega Deduction, today’s announcement is a significant step toward enhancing Canadian competitiveness, productivity, and trade diversification. The Productivity Mega Deduction will help level the playing field with the U.S. and unlock additional investment in the assets across our supply chains that keep Canada moving.

The rail industry is capital intensive. Canadian railways invest billions of dollars every year to connect Canadian businesses safely, reliably, and cost-effectively to markets at home and around the world.

Transportation is critical to realizing the federal government’s goal of doubling non-U.S. exports by 2035. For Canada to move more goods longer distances to diverse trading partners, it needs the conditions to support investments across Canadian supply chains, including in railway assets like track, bridges, rolling stock, and innovative technologies. With this announcement, the federal government is moving toward creating better conditions to invest private capital in trade-enabling infrastructure that underpins Canadian economic growth.

RAC and its members have long advocated for permanent policies that incentivize more supply chain investment in Canada. A June 2026 independent report commissioned by RAC found that this policy would generate substantial additional annual private-sector investment across supply chains and increased GDP.

Canada’s railways look forward to Parliament quickly adopting legislation to implement this important measure.

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