Driving investment in Canada’s supply chains
A new independent report conducted by former Parliamentary Budget Officer Yves Giroux finds that extending 100% immediate depreciation to the transportation and warehousing sector would generate $591 million in additional annual private-sector investment and $887 million in increased annual GDP.
100% Immediate CCA Deduction
of Capital Investments – by Giroux Strategies
Key Findings
The report demonstrates that 100% immediate depreciation for freight transportation and warehousing would encourage investment in the infrastructure and equipment that keep Canadian goods and trade moving.
Extending 100% immediate depreciation to the transportation and warehousing sector would advance the government’s agenda by supporting:
- Trade Diversification: Catalysing private sector investment in infrastructure that connects Canadian businesses to domestic and international markets.
- Stronger Supply Chains: Boosting investment in transportation infrastructure that improves supply chain performance and resilience.
- Improved Competitiveness: Helping Canada level the playing field with the US – which has implemented 100% permanent depreciation – for long term transportation infrastructure.
- Long-Term Growth: Encouraging additional private-sector investment that supports productivity, competitiveness and long-term economic growth.
Canada must level the playing field
Transportation is critical to realizing the government’s goal of doubling non-U.S. exports, yet it is the only sector currently facing a higher marginal effective tax rate than the U.S. Canada cannot afford to leave its trade-enabling infrastructure at a significant tax disadvantage relative to the U.S.
The transportation sector is critical to realizing the government’s goal of doubling non-US exports, yet, it is the only sector facing a higher METR.
- In November 2025, Canada Strong, Budget 2025 reinstated the Accelerated
Investment Incentive, which enhances the first-year write-off of 1.5 times the
class rate (or 3 times the normal rate). - In July 2025, the One Big Beautiful Bill Act reinstated and made permanent
100% bonus depreciation for qualifed assets that were placed in service after
January 19, 2025.
Strengthening Canada’s Competitiveness
Cost
0.07%
of total federal tax revenues
Investment
$591M
leveraged in annual private sector investment
$1.79
private investment generated for every $1 of net federal fiscal cost
Growth
$887M
annual GDP increase
$2.70
GDP growth generated for every $1 of net federal fiscal cost
The government has already recognized that faster capital cost recovery “boost[s] productivity and attract[s] investment.” Extending 100% immediate depreciation to transportation and warehousing would apply that same economic logic where it can strengthen Canada’s supply chains and trade competitiveness.
Strong economic returns at minimal fiscal cost
Extend 100% immediate depreciation to the transportation and warehousing sector. Leverage the government’s Capital Budgeting Framework to strengthen Canada’s sovereignty, diversify trade, improve productivity, and support long-term economic growth.